Unrealistic price targeting is a dangerous game, and could have a negative

effect on your negotiations. If you paid $4 last year and this year walk in with

a target price of $2.50, your vendor will pay scant attention to that number. He will revert automatically to the historical price, and start from there.

 

irrelevant to anything. You will need to keep asking and listening, asking and listening, to find out where they are going with the discussion. If you do, sooner or later you will know.

 

Critical to communication is clarity on both sides. To facilitate this, we have invested in new software systems that we use in developing, producing and shipping product. These systems let our customers view relevant data online. Our goal is to reduce the Excel spreadsheets and make communication about product more accurate.

 

It is important to be explicit about the information you need from your vendors. I suggest you supply your vendors with charts that they can easily fill out. Explain the significance of those charts, very slowly and carefully. If possible, demonstrate the significance. Where is the information going? Tell them why. If possible, show them.

 

Another critical issue is time. You need to give your vendors plenty of time to get back to you with answers. Here in the US, we want the answer NOW. In Asia, it takes more time for companies to assemble information and documentation, and get it back to you. You need to understand, respect and plan for this cultural difference.

 

In short, it’s your responsibility to invest the time and effort required to educate your vendors about your company and your needs.

 

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Honesty: In our culture, it is considered a virtue to be open; we say: “Let’s get everything on the table.” Asians don’t usually operate the same way. In Asia, honesty is not talked about. It is not something that’s a given. In the US, we assume that people are innocent until proven otherwise. Asians assume nothing. They wait for you to prove yourself by what you do. In Asia, you never, ever accuse someone of lying to you.

 

At our office in Hong Kong, we often get calls from people

saying: “I’m not sure the factory is telling me the truth. I think they’re hiding something.” Of course we then do the research to find out what’s going on. But what we find is that, 90 percent of the time, such problems are related to the cultural differences enumerated here. Something has been lost in translation.

 

Sometimes the factory is indeed hiding something; usually, there’s a problem and they don’t know how to present the issue.

How do you surface and address problems?

Again, you never accuse the vendor of lying. Better to dance around the issue. To get anywhere, you need to think about the vendor’s motivation, and what he has to lose or gain. Are they seeking to buy time? Get more money? Trying not to lose face because they made an error?

 

In our experience, the best way to proceed is to ask plenty of questions at all levels of the organization you’re dealing with. Assemble the pieces and put together the puzzle and you will eventually be able to determine, from all the bits of information you glean, what is really going on.

 

If you still feel that information is being hidden, that you’re not moving forward, that things are not getting smoother and easier, you need to have a face-to-face meeting -- or at the very least, a videoconference. You need to look the vendor in the eye, and have a very serious discussion.

 

Usually, the truth will come out. Once it does, you can address the issue productively, and resolve the problem. Obviously, this takes time. A good reputable agent should take care of all this on your behalf.

 

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Expression of self: In America, we value autonomy. We want to run our own businesses. It’s respected to be a “mover and shaker,” to be “The Decider,” to be the executive or manager known to get things done. Here, we think: “Ask for forgiveness –– not permission.”