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How to FIND a chemical manufacturer and supplier to procure at the TARGET PRICE?

15/09/2023 09:09 AM

Post by Fyndsupplier

In an ideal world of procurement of chemicals, chemical QUALITY and specification should be the MOST important priority to make or break a procurement deal.

The general procure to procure chemicals is like:

  1. Chemical buyer prepare specification of chemical he/she want to procure

  2. Buyer send this specification as inquiry to existing vendors who they know already

  3. Buyers in the mean try to approach new suppliers or traders or WhatsApp group or other networks where there is any probability to connect with a supplier who can match the chemical specification. 

  4. Once chemical buyer identified a supplier to match chemical specification, the next immediate discussion is about TARGET PRICE

  5. Once the price is settled down, discussions happen about lead time, delivery time, payment term, packaging and other needs related to successful procurement. 

 

Certainly chemical specification and quality are TWO most important factors to choose a chemical to procure or not. However,  In the real and practical world,  most of the deal discussion goes after PRICE. 

 

Once a chemical buyer has identified a chemical supplier with a reputed track record, or if buying from an existing supplier, and they are sure about material quality and specification match then the discussion goes ONLY after price. 

 

Price is a discussion in the chemical procurement world, like price discussion in a vegetable shop which we do regularly if we go to vegetable shop to purchase verbiage for our home. 

 

In the price proposal and quote comparison, if you are getting very low price with any NEW supplier then that can be RED FLAG to avoid offer which looks “Too good to be true”

 

If you are the business, you should have an ideal price of material and if you find someone offering more than 20% off in price then that can be a TRAP. Discuss your concern and access his price offer as it might be a lucrative scammer deal. 

 

Along with price, discuss payment terms. Always choose a payment term which is trustable and mutually agreed. With a new supplier who you have not done business with in the past, preferably choose LC at sight to avoid advance payment. Before payment, do thorough due diligence of suppliers including sending any cost-effective local freelancer or third party inspection company, based on deal value. 

 BEST PRACTISES TO NEGOTIATE PRICE

 

Here are few practical advices for negotiation of chemical prices with chemical suppliers: 

 

  1. Try to get as many quotes as possible to find one which can get closest to your target price. 

  2. It's always challenging to meet target price but based on other procurement priority, we can optimise our price match requirements. 

  3. Negotiate with the supplier NOT only on price but on other terms including PAYMENT TERM.

  4. Be careful with price offers which seems “too good to be true”

  5. Once you settle with specification and target price, discuss payment terms. LC is always adding some bucks as bank fee but still safer to pay than advance. 

 

At the end, use your common sense to access the offer by the supplier and careful analysis before making any penny as advance payment. Unless you are sure of the quality, specification and track record of the supplier, don't make any payment. In the real world, once the price goes out of your account, it will be impossible to bring back, so better show thorough review before making payment. 

Some chemical buyers call it a RISK to make advance payment but I say that its worth it to access carefully before taking risk. Even if you have no choice to avoid this risk then try to take “calculated risk” but not “blind risk”. 

Fyndsupplier.com has been an excellent chemical buyers and suppliers network which makes maximum care in verifying suppliers. There is high chance to meet a trusted supplier on fyndsupplier than anywhere else online. If you have any doubt about supplier credibility found on fyndsupplier, you can discuss with customer support at fyndsupplier to check the credibility or pride any better and mutually agreeable deal with supplier. 

If you have any further quality and need any advice then feel free to connect. 

Good luck

 

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