International Traders and Discount Requests: Techniques to Manage the Discount Requests

Introduction

International trade is an area of international business that fascinates everyone. No economy can survive on its own. Nations need to play their role in moving and producing goods globally. 

With the advent of modern comforts and ease of importing and exporting goods and commodities, it has become imperative that international trade be more profitable than the local markets.  

As we go deeper to study how the flow of business work, we meet an essential category of experts. These experts work as a significant part of imports and exports. The people that we refer to here are international traders.

International traders deal in moving things from one nation to another with legitimacy. As an international trader, you must know about the various stages of international business. From collecting the goods to making the final deal, international traders must go through a lot of effort and paperwork.

This piece of writing will help you understand the role, responsibilities, and tips for international traders and the discount request that international traders get while managing the request for discounts in international trade. 

International Traders and Discount Requests

As an international trader, business dealings do not go by the books or as planned. There are agreements and disagreements. 

You have to make and entertain changes to every transaction. Every business deal is supposed to be customized and different as customers’ needs vary.

A business on a vast level and multi-jurisdictional space demand some discounts. These discounts aim to enhance the relations and carry forward the common goal of profit earning.

There has been an increase in discount requests from international traders, leading to lower margins. While more discounting will result in a lower margin, internal cost savings could help offset this impact.

Let’s understand

1. How do a business avail of international traders and discount requests?
2. Whom should we give a trade discount?
3. How do businesses avail of international traders and discount requests?

Trade discount is the amount of reduction a retailer gets from a wholesaler on listed prices to buy his goods in bulk.

The retailer, in this scenario, sells products at the listed price, allowing him to earn more profits. This discount is not mentioned in the book of accounts, thus allowing retailers to earn more by selling at the listed price.

Take a look at this illustration.

The wholesaler sells the product Daisy to retailers for $20 (listed price) and asks to discount the price of Daisy to $19 (discounted price) if the retailer buys in bulk.

The retailer buys 100 Daisy products from the wholesaler, making it as per the price of $2000 and the discount agreement of $1900. Retailer further sells it for $20 and earns profit accordingly.

To Whom should we give a trade discount? 

Offering discounts to everyone is not possible in the long run. We must be mindful of to whom our discount goes and what we will get in return. We should ideally offer our discounts to:

1. Regular customers
2. Who buys in large quantities
3. Reward customers for loyalty
4. Establish a trustworthy relationship

Role of Traders and Their Techniques to Manage the Discount Requests

In every deal, two parties hold the forte for both sides. Everyone knows their best and does their best to get benefits out of the deal. 

Companies sometimes hire a person to represent them in a deal or put their best interests forward. The role of an international trader or representative is the same as that of the original owner, which is to get the best profit.

The more bargaining position you can get the more the profits it will lead for your business. Your role as a negotiator is not to dictate the terms to the other side but rather to take each party into confidence and then move toward the final process of the deal. You can find solutions on interest level to make everyone happy.

Remember these things while you are negotiating:

1. Why are you asking this? Know with who you are bargaining and what will be the use of your bargain.
2. How are you asking this? Are you talking in a friendly way, or are you being authoritative in your tone?
3. For whom are you asking this? Know what capacity you are bargaining in. what will this bargain imply to your profits?

Negotiation can be a tricky part to handle. It includes developing a strategy and positioning your business through which you can claim more value for it. While it’s natural that being a business person, it’s not always possible for you to be an expert in everything, so you have to hire someone who can help. In this case, lawyers can come to your rescue!

Lawyers are trained professionals in negotiation skills, and they can be of great assistance in negotiating deals for you on your behalf or by assisting you in the negotiation process. If you are planning to negotiate a deal, and would like assistance from a lawyer, you can turn to LegaMart, offering a range of lawyers from around the world with varying levels of expertise, experience, and interest. All you need to do is zoop into LegaMart directory, decide which lawyer you want to hire, and boomm! You have got an expert with you!

Tips to Perform your Role in International Traders and Discount Requests

There is no fixed or particular structure to negotiate. Rather, you must be clear and focused on negotiation process.

Some of the critical points that you need to be clear about are:

Problem-solving

You cannot go to the negotiation table with a mindset of conflict. You rather should have a mind free from any conflicting ideas. 

Get a good deal

Everyone at the negotiating table plans to earn better value for themselves. Maintain the decorum of the house, and formulate your deal, so everyone gets a good deal.

Plan for negotiations

It is the most significant part of any negotiation; you must chart a proper plan for your demands and interests. Know your counterpart’s interests, ask about everything they want to discuss, and proceed accordingly.

Besides all these tips, one of the essential things that international traders look for is security and risk management to ensure their money/goods are protected from uncertain losses. International traders are curious about what conditions and circumstances may exist if anything unexpected occurs. And the solution they are looking for is compulsory insurance in international trade, to ensure the stability and certainty of business operations.

Techniques to Managing Requests for Discounts in International Trade

With competition and awareness, people have more options than ever before. You need to modify your requirements in such a way to get good results.

Negotiation is a skill that gets better with every new experience.

The following are essential techniques to manage discount requests:

Focus on the issue, not the person who is taking up the issue

As a negotiator and the interested party in the deal, you must focus on the deal’s benefits and not on the person representing it.

Sometimes the presence of a particular individual can make you uneasy, but your focus on the deal makes it worth it.

You can be hard in on negotiations but not to the people. 

Your negotiations should be interest-oriented, not position oriented.

Do not commit to any addition or subtraction without proper assessment 

In most cases, when negotiations are still in progress, there will be additions, subtractions, and changes. You better not commit to making changes in the first instance without duly referring to the consequences of your acts.

Take some time to discuss and deliberate with your team, and then only commit to fulfilling the conditions.

Different options should be available and should be offered in case one does not work

While preparing a proposal for the deal, make sure you provide an alternative to the other side, too, regarding how they can proceed if things are not acceptable to them as per your proposal. You should give the additional side time to deliberate upon your alternative and wait for a response.

Negotiations are not a one-way path. The goal is to reach a consensus that satisfies both sides. We better make it easy for another side to make the final decision. 

Develop a plan on how you will proceed to negotiate

At your place, have a strategy on all you need from this deal, and all are the points upon which you are not ready to compromise. 

It would help if you were very sure about what you expect to do from this deal up to what percent you can offer any discount or any other reason.

Prepare all the methodologies of financial dealings

What methods do you want to employ to get paid? What taxes do you like this deal to cover?

How will you receive the payment? What percent of discount are you expecting from this deal? 

Have all these questions cleared in mind, then only proceed to negotiate. Often, you cannot pay the other part, and the whole deal gets disputed, or you choose a taxing method that gets you in losses.

Make sure you mock drill everything before you proceed to negotiate

Reciprocate what is shared

In every deal, some information is supposed to be shared, and you, as an international trader, are responsible for sharing information with the other side to reach an agreement. 

When one side shares information, Otherside is responsible for sharing the information. 

Commitment and consistency 

Be very active and play your role. Your seriousness and commitment show the other side how important this deal is for you. Be prepared to answer or provide a solution whenever there is any query. As you consistently follow all the procedures of the deal, it is proof of your commitment. 

Consistently look into the framing of good solutions and be part of those solutions.

Get involved with authority

Gain authority to be part of the deal, and be an authoritative figure so that your word is taken seriously and with attention. 

Conclusion 

International traders and discount requests are an essential part of business deals. Having a good idea of what we want from the deal and conveying the same message to the other side is vital. For this purpose, we have expert techniques to manage discount requests. As businesses keep on growing and elaborating, negotiating is of the essence. Knowing whom to contact at this time is also significant. 

You have access to a platform of brilliant and expert negotiators who cannot only negotiate on your behalf but will do it with knowledge, expertise, and authority. 

We at LegaMart make things easy, convenient, and affordable for you. 

Contact us for better negotiation and to get the best of the deals!