Ian Bennett http://www.westhillconsulting-career.com/blog/ Tip 1: Each SE Asian country is different South East Asia is a mixture of nations and cultures which have combined under regional block called ASEAN to assist with the development of the region. These nations are Thailand, Malaysia, Philippines, Singapore, Brunei, Indonesia, Vietnam, Cambodia, Lao and Burma. Each Nation has unique resources and are at various stages of development. It is critical to understand each of these nations are different – sometime very different and should be considered individually when developing an export strategy.

1. Top Tips for Business
Negotiations in South
East Asia
Ian Bennett
http://www.westhillconsulting-career.com/blog/

2. Tip 1: Each SE Asian country is different
South East Asia is a mixture of nations and cultures
which have combined under regional block called
ASEAN to assist with the development of the region.
These nations are Thailand, Malaysia, Philippines,
Singapore, Brunei, Indonesia, Vietnam, Cambodia,
Lao and Burma.
Each Nation has unique resources and are at various
stages of development.
It is critical to understand each of these nations are
different – sometime very different and should be
considered individually when developing an export
strategy.

3. Tip 2: Be Prepared to Negotiate
Negotiating is an in built part of Asian culture,
and is unavoidable. Be prepared, and seek advice
if unsure on how to develop your pricing strategy
or do not have knowledge of these many
variables.
Negotiating in ASEAN has become an art, and
many Australian executives will when asked for
their best price, immediately give the bottom
price without realising this is only the beginning
of the negotiating process and are then left with
a lose/lose situation.

4. Tip 3: Develop a structured pricing structure
When developing export and pricing strategies a company should have a
well structured pricing strategy.
Put simply, price list "A" which is what you would really like to achieve,
price list "B" what you would consider your domestic wholesale price and
therefore acceptable, and pricelist "C" which is your final offer.
Bear in mind that many ASEAN exporters, will expect you to consider
quantity discounts, longer than normal payment terms, open account,
and 90% of the time exclusivity.
You have to decide whether you are to bank roll your exports at low
margins, the costs of using banking instruments (L/C’s), and if prices get to
low whether this is a market suitable for you.
Finally one must consider shipping terms, FOB, C&F, ex-works etc., and
the impact these pricing terms have on your prices.
One point to your advantage is the term exclusivity, this give you the right
to demand minimum orders, minimum yearly sales and contribution to
marketing and promotion costs in getting your product to market.