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How Blunt Can I Be In Dealing With A Chinese Business?


waerth

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Hello,

 

Sorry to bother everyone on 2nd christmas day. But I have a question to does whom have experience in dealing with Chinese businesses.

 

For my Talent Agency I was approached a week ago by a Chinese production company from Shanghai. They want to do a photo shoot here in Bangkok in the 2nd week of January and need (just) 4 people as featured in the background. They were like o we are sorry we are so late and we need to arrange this asap. And we need everyone to confirm 100% for the shooting day right now.

 

Now we have been emailing back and forth for a week and they have been calling me 2 times a day almost every day. I explained to them that in BKK for this kind of little money you cannot confirm people this far in advance because 50% will just not show up because they get a better offer in the meantime and they were like no we have to confirm now because our client wants that. I am very surprised to hear that because almost every shoot I have been in nothing gets decided until the day before the shooting, nothing is ever confirmed! which is what everyone in Bangkok is used to you. So they came back saying they were willing to pay more per person if they signed a contract confirming so they are guarenteed everyone will come. So I told them it is 10,000 baht then at least, as I know for that kind of money for a 9 hour day even the most "difficult" cases will show up and then at least I will make some money to. But off course they do not want to pay that and want a special discount (I was called, again, while writing this and they want to pay 6,000 and everyone should bring 3 sets of clothing which is a challenge as people will usually bring it along, but they almost always will not bring what a director wants which is trouble if the Chinese do not bring their own clothing).

 

Now I know how to handle Thais in this kind of situation, and I know what is reasonable and what not. But on one hand I want to tell them to shove it, on the other hand I need the job. they are taking way to much time compared to clients like Carlsberg, Tiger Beer, Air Korea etc etc etc that I have dealt with and want a price so low and want me to do so much for them that it is going to cost me more than I will gain, which inmy current financial situation I cannot afford, I am scraping the bottom as it is. Although the girl is very sweet it is very difficult to deal with them. As they want 100% guarentees etc. which is a no in BKK really. Someone might be arrested at a police checkpoint on his way to the set for not carrying their passport (it happened on a shoot I had!), they can have an accident in traffic (common) or simply not wake up.

 

So now how blunt can I be with the Chinese? They seem overly worried about the time frame etc, while in my opinion we have seas of time and I feel that if they fly all the way from Shanghai to here they shouldn't try to skimp so much on the money. Any advice from people experienced in business dealings with Mainland Chinese Businesses?

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Just return from a project in China.

The whole time I was there, the Chinese would ask, when I would be finished.

Everyday I gave them the same answer, I will finish 3 days after you have all your

work finished.

 

The Chinese will pester the crap out of you asking the same question(s) over and

over and over again, until they get the answer they want.

 

The Chinese call me "Frank" as I tell them how it is, quite frankly, thus the name.

 

Hold your ground. If what they want can only be provided at a higher cost, then that

is the "frank" answer regardless of how many times they ask the same question!

 

Be blunt, they will not be offended.

 

If you let them beat you into an unrealistic agreement, they will come back to you

with the "why did you agree to Xyz if you cannot deliver" question and put all the

blame on to you.

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they want a price so low and want me to do so much for them that it is going to cost me more than I will gain, which inmy current financial situation I cannot afford, I am scraping the bottom as it is.

 

So stick to your price and if they won't agree then walk away. No point doing it for nothing or even a meagre profit.

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So stick to your price and if they won't agree then walk away. No point doing it for nothing or even a meagre profit.

 

For once Munchie and I are in agreement

 

Your Agency

Your Rules

 

As my good friend Cav pointed out, give them an inch and they try to take a mile but in my personal experiences of dealing with the Chinese as long as you are 100% upfront with them and explain your constraints etc they will listen, at the end of the day they need you more than you need them.

 

Stick to you principles W

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Be blunt: standard Chinese negotiating tactic in play, i.e. create a deadline, engage provider but then hold off from closing the deal as the deadline approaches. Claim that it is the other party, not them, that's failing to demonstrate sincerity/genine interest in closing the deal. Once the provider is on his back foot go hard to insert additional requirements at no extra cost, knowing that the provider has already invested time and money in the negotiation and contract preparations.

 

Free e-book on Chinese commercial negotiating style here: http://www.rand.org/pubs/reports/R2837.html

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Thx for the answers. Looks I am on the right way than :) as I have been keeping my foot stiff. And I can be a bit blunter on top, great help thank you all of you!

 

Yup, just set your price, tell what you'll do for that price, and stand firm. Fuck 'em if it will lose you money or even you just break even on the money. Play hardball... same as they are, so play the same game and show them you have some spine. Can they go elsewhere at this late date? Seems that you actually have the upper hand, unless they know you are desperate and need the money/job, or you cave and act the wimp with them. Be tough, I'd think they will actually respect that. JMHO.

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All good points above. In the past with mainland Chinese I've found it really helpful to blame the issue on others...you have come down as much as you can, almost working for nothing because you want a long term relationship, but the other people are the problem and they won't budge.

 

Good luck.

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