Our company has a long-term cooperative customer from a well-known global company. Last year he ordered a lot of equipment parts from us for a total of 80,000 US dollars. But the production cycle of the goods was long. After we finished producing the product, we informed the customer to accept it. Unexpectedly, he told us that due to the adjustment of their internal production line, the production line would be shut down next month. So, This batch of spare parts was not needed, and there was no need to ship.
At the same time, he hopes that we can bear the expenses of the previous investment for our long-term cooperative relationship and do not ask for the payment. This news is beyond expectation. Although the goods are not shipped and the ownership is still in our company, the goods are customized for him and cannot be resold to others. If he does not use it, it can only be scrapped, which will cause us a big loss. How should we discuss with our customers and let them bear the expenses they should bear?
If a customer is from a small company or a credit-poor company, this is a troublesome thing, because you have not received the advance payment. Even if you try to negotiate with the customer, but he ignores, you can do nothing.
If it is a large company with good credit, the situation will be better. They won’t go too far with a lot of things. And they have worked with you for a long time. There should be someone who can communicate. If they cause losses to suppliers for their own reasons, they should also have compensation plans. In other words, the supplier has the right to get compensation through their procedures. Therefore, you must work hard to communicate with your customers, strive for your rights, and minimize the loss.
I went through a similar thing in May this year. The customer changed the design, and the original design was invalid. So, the goods we had already prepared could not be shipped. After the negotiation, the client finally agreed to compensate us for the loss. We deducted the original price from freight, insurance, and some miscellaneous expenses, and turned it into the price of FOB Shanghai. And they agreed to pay. At last, we modified the contract, and I gave them an invoice. Now I have received a payment.
Perhaps the customer is from a big company, and he is tough. But you have a foundation for cooperation with him, as well as years of communication. You can also make some concessions, such as the original price minus some miscellaneous fees, etc. You can also deduct the value of the scrap, or even deduct some your reasonable profits. But for the cost and expense that you have invested, the customer should pay.
It is, of course, the best for the customer to let the supplier bear the loss. But you can reject their unreasonable demands. Any company must be responsible for its default. Therefore, you can ask the customer for compensation.
If you do business, do not give up easily, especially the benefits you deserve.
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1. Is There Any Room for Newcomers in Foreign Trade?
2. What Kind of Employees Do Foreign Trade Enterprises Prefer?
3. How Do Newcomers Choose the Right Firm?
4. How Do Novices Prepare for Interviews?
5. How to Choose the Right Foreign Trade Position?
6. Are Girls Suitable for Foreign Trade Sales?
7. Do Exports of Traditional Industries Have Development Space?
8. Is Foreign Trade Newcomer’s Income Generally Low?
9. How to Adapt to Foreign Trade Posts Asap?
10. How to Improve English Ability in the Short Term?
11. How Can Newcomers Better Communicate with the Leaders?
12. How to Get the Client’s Trust in the Short Term?
13. What Should I Do if I Have A Dispute with the Client?
14. How to Adjust Attitudes When Meeting Differences in Company?
15. How to Communicate with Foreign Customers?
16. What Should I Do if the Company is Filled with Intrigue?
17. What Reference Books Should Foreign Trade Newcomers Read?
18. How to Make Yourself Look More Professional?
19. How to Adjust Mentality When You Switch to Foreign Trade?
20. How Does the Salesclerk Calculate the Gross Profit?
21. How to Calculate the Export Tax Rebate?
22. How do Newcomers Develop Market Based on its Features?
23. How to Calculate the Export Cost Price?
24. How to Fill in the Vendor Registration Form?
25. What is the Format of A Letter of Authority?
26. How to Attract Potential Customers in the Exhibition?
27. The Main Features of Reverse Auction and the Skills to Attend It
28. The Experience of Attending A Reverse Auction
29. Why Don’t Place Orders for Good Price and Products?
30. What if Customers Require Not to Supply to Its Competitors?
31. Can You Really Buy Real Buyer Information?
32. How to Make A Standardized Quotation?
33. How to Prepare for Customers to Visit Our Factory?
34. How Should We Arrange for the Visit of Executive Clients?
35. How to Prepare for the Quality Inspection?
36. What Should Be Noted When Eating Food with Customers?
37. How to Work as A Good Banquet Translator?
38. How to Reasonably Arrange the Time When Customers Visit?
39. How to Prepare for Visiting Clients Abroad?
40. How to Make the Minutes of the Meeting?
41. What If Clients Propose to Sign Exclusive Sales Agreements?
42. Is the Cost of the Hotel Paid by Customers or Us When Visiting?
43. Can Subcontractor Warranty be Provided to End-users?
44. What If the Customer Suddenly Does Not Want the Goods?
45. Suppliers Lost Chances for Backing Up on the Highway
46. How to Maximize Profit through Reasonable Price Strategy
47. How Should Foreign Trade Companies Find their Position?
48. How Do Foreign Trade Companies Choose Export Suppliers?
49. How to Enhance the Control and Influence over Suppliers?
50. Is It Proper to Let Clients Ask Manufacturers to Solve Problems?
51. How to Agent Domestic Factories to Export Their Products?
52. Which Way to Pay the Agency Fee is better?
53. Why Do You Have to Know about Products, Suppliers, Clients?
54. The Process and Cost Calculation of Agent Import Business
55. How to Straighten Out Relationships in the Agency Contract?
56. How Do We Show That We Need An Agent in the Contract?
57. How to Do Good Jobs of Agency Import Agreement Service?
58. How to Determine A Reasonable Agency Fee?
59. Is the Agency Business with Low Agency Fees Worth Doing?
60. Why Do Manufacturers with Foreign Trade Rights Want Agents?
61. How to Use Foreign Trade Company to Open Overseas Market?
62. What are the Difficulties in Collecting Money by Letter of Credit?
63. If Supply Cycle is Long, How to Control the Risk of Quotation?
64. What if Tax Rebate Policy Cause Prices Lower Than Costs?
65. Tips for Paying Commissions to Foreign Middlemen or Agents
66. Why Use Written Documents for Business Contacts?
67. How to Control the Risk of Export Quotes?
68. How to Trade in the Middle East While Controlling Risks?
69. How to Offer the CIF Price to Products with Long Supply Cycle?
70. The Main Situation of Foreign Trade Fraud
71. How to Handle Costs of Repacking Goods at Destination Port?
72. What If the Qualified Products Aren’t Enough to the Contract?
73. How to Handle the Return or Repair of Exported Goods?
74. What Should I Do with Insubstantial Complaints from Clients?
75. How to Handle Disputes in the Agent Export Contract?
76. What If Clients Ask Us to Replenish or Repair Products?
77. What if Clients Demand Compensation for Packing Damage?
78. Parts of Previous Goods Rusted, Clients Ask to Replenish Freely
79. Who Should Bear Import Tariff and VAT for Free Replenishment?
80. What If the Goods Deformed the Container Before Shipment?
81. What If Customers Threaten to Punish Us for Quality Problems?
82. Why Do Customers Never Feed Back on Our Quality?
83. What If Customers Ask Compensation for Damaged Products?
84. What If the Forwarder Delay Delivery, Bringing Extra Costs?
85. What If Customers Have Placed Orders with Wrong Quotes?