Hey guys,welcome to our program.Recently people are talking about the declining exchange rate between RMB and USD.Although it can be good news for some people who are fancy of shopping abroad,it could be a big headache for those who are trading with foreign clients.One of my best friend is facing the problem from the exchange rate.Their profit dropped sharply due to it.What's worse,the client even asked about further discount based on current price.If you face the same problem,the emails below might help you a lot.It is written by my friend Liming.And now I'd like to share it to you with his permission.
客户来信
Dear Ming,
Hi !
Regarding the 10% discount on the current price & payment terms, we are still waiting.
Regards,
Mahmood
资深外贸人的回件
Dear Mahnood,
Sorry for my late response on this topic since it's really a hard decision for us.
The rate for USD VS RMB has declined more than 6% during these few months. (The rate has dropped from 6.9 to 6.5) That means our export's margin declined at least 6%.
If we agree 10% further discount, it means
our margin decrease at least 16%
. The price we quoted ($255/ set ) is not that inflated, our margin is limited. We really can't agree 10% further discount. The opinion of my boss & our CFO is to keep the current price and payment terms. (Not good impression for last order !)
After further discussion, indicating the aggressive competitive pressure from your competitor HAU & EVISON, our management
finally agreed to offer
5% discount per set
oncurrent price and the payment terms to be 20% in advance with the PO & balance
45 days credit period
after the shipment dispatch date from China.
Thanks for your time and understanding.
Best Regards
Ming Li
