Q: In China in particular, I have found that sometimes having a target price stated can be to the buyer’s advantage as quality level is often tied to price. And if the supplier doesn’t have a target, sometimes the buyer ends up overpaying on poor quality.
A: In other words, the supplier tries to get the highest price for the lowest quality they can negotiate. While I don’t suggest you tell your potential suppliers during the Request For Quotation process what is your target price, I do suggest that after you narrow down the top potential suppliers, you focus on using the best price from the RFQ research to work with your top supplier to achieve the best price to quality ratio.
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