Top Tips for Business Negotiations in SE Asia

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Top Tips for Business Negotiations in SE Asia

• Westhill Consulting Employment

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Top Tips for Business Negotiations in SE Asia

• South East Asia is a mixture of nations and
  cultures which have combined under regional block
  called ASEAN to assist with the development of
  the region.
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• These nations are Thailand, Malaysia,
  Philippines, Singapore, Brunei, Indonesia,
  Vietnam, Cambodia, Lao and Burma.
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• Each Nation has unique resources and are at
  various stages of development.
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• It is critical to understand each of these
  nations are different sometime very different
  and should be considered individually when
  developing an export strategy.

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Tip 2 Be Prepared to Negotiate

• Negotiating is an in built part of Asian culture,
  and is unavoidable. Be prepared, and seek advice
  if unsure on how to develop your pricing strategy
  or do not have knowledge of these many variables.
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• Negotiating in ASEAN has become an art, and many
  Australian executives will when asked for their
  best price, immediately give the bottom price
  without realising this is only the beginning of
  the negotiating process and are then left with a
  lose/lose situation.

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Tip 3 Develop a structured pricing structure

• When developing export and pricing strategies a
  company should have a well structured pricing
  strategy.
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• Put simply, price list "A" which is what you
  would really like to achieve, price list "B" what
  you would consider your domestic wholesale price
  and therefore acceptable, and pricelist "C" which
  is your final offer.
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• Bear in mind that many ASEAN exporters, will
  expect you to consider quantity discounts, longer
  than normal payment terms, open account, and 90
  of the time exclusivity.

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• Bear in mind that many ASEAN exporters, will
  expect you to consider quantity discounts, longer
  than normal payment terms, open account, and 90
  of the time exclusivity.
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• You have to decide whether you are to bank roll
  your exports at low margins, the costs of using
  banking instruments (L/Cs), and if prices get to
  low whether this is a market suitable for you.
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• Finally one must consider shipping terms, FOB,
  CF, ex-works etc., and the impact these pricing
  terms have on your prices.
• One point to your advantage is the term
  exclusivity, this give you the right to demand
  minimum orders, minimum yearly sales and
  contribution to marketing and promotion costs in
  getting your product to market.
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• More info
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