Negotiating Large Orders: Link the Price to the Actual Purchase Quantity

Separate a promise of a large order from today's purchase

Sometimes buyers begin negotiations with a very large volume and ask sellers to quote a correspondingly lower price.

Then, after reaching the desired price, the buyer requests a small initial order while expecting the large-order price to apply.

This lesson by Mostafa Nezamparvar focuses on the distinction between the volume discussed in negotiation and the quantity actually being purchased.

The video's example concerns negotiations with Chinese buyers. Its useful point relates to a specific negotiating behaviour, not nationality. It does not establish that all buyers from one country behave this way. Sellers should assess the actual request, transaction terms and pricing basis.

How does hypothetical volume change profit calculations?

The educator explains that a large figure may lead sellers to calculate the whole order's profit. They assume that even a tiny margin per unit will be offset by volume, and quote a price that is unjustified for a small order.

In the session's example, the buyer first discusses a very large order, then requests a limited trial quantity.

The issue is not the trial order itself; it is pricing based on a large purchase while the buyer's current commitment is much smaller.

Without separating them, sellers may concede the benefits of a large order without receiving that order.

When assessing an offer, distinguish the current order from merely possible future cooperation. Expected sales growth should not replace examination of the transaction now proposed.

A large order does not always have a lower sourcing cost

This response has a sound commercial basis only if it reflects actual sourcing conditions. The article does not infer that sellers should quote higher prices for large orders without calculations.

Each quantity's price should be assessed against the capacity and cost of supplying that quantity, not merely a figure intended to impress the other party.

In the educator's account, explaining supply limits can return the discussion to a smaller, assessable quantity. The result is not guaranteed in every negotiation, but attention shifts from a large promise to actual execution conditions.

Assess the initial transaction on its own terms

Starting with a small order can help both sides learn about each other. The educator emphasises that even a large buyer may begin with limited cooperation. Such an order is not inherently evidence that the buyer is weak or fictitious.

The initial transaction's terms must nevertheless be clear. Price and quantity should not rest on different assumptions: a small actual order priced solely on a large future one. The practical principle is to distinguish the possibility of a long-term relationship from the other party's present commitment.

Three questions help review the negotiation:

Three negotiation questions

• Exactly how much does the customer want now?
• Which quantity and sourcing cost underpin the proposed price?
• If the larger follow-up order never occurs, are the current order's terms still acceptable?

These questions are a practical synthesis, not a method for guaranteeing the transaction's outcome.

About this talk

This article is an edited, thematic adaptation of Mostafa Nezamparvar's video “The Chinese's Hidden Negotiation Tricks!”, published on 6 October 2024 and embedded on this page. It is based on automatic Persian captions, not a word-for-word transcript. Nationality-based generalisations, global-trade statistics and the closing freight-rate claim have been omitted; the video itself does not fully explain the freight topic. The adaptation focuses on a specific negotiating behaviour and matching prices to actual order quantities.