Here is a conversation between a member and a trader…
Hey guys and gals,
I just had another conversation with a trader. I know many of you want to know how this goes down or how to handle this. I am not saying I handled this perfectly, but I think I stood my ground and have a lead to work on now. (If I act fast)
This is a perfect example of an amusing conversation with a trader with an ego. Not all traders or brokers are cocky or pretend to know it all. Some are genuine and are looking to build sustainable business relationships with other agents. Some have no experience and need a little bit of guidance and patience. Anyway, I had fun. Hope you’ll enjoy this too.
I am sharing this with you so you can take what you think will help you in future conversations with traders or other brokers. I am assuming you know the difference between a broker and a trader. If you don’t….tell us and one of us will explain it to you. No worries.
This is a long post
*Hello Ashish, my name is Natasja. I just read your request on the B2B portal. There’s a large amount of whole black peppers available for supply on a continuous basis at a reasonably low price, quite possibly with a much better deal than you are receiving at the moment.
Are you still looking for this?
yes we’d like to buy black pepper
Allow me to introduce myself. I am a procurement consultant. I have access to a database of hundreds of suppliers from all over the world, exporting globally. I get my fee from my suppliers, so I can offer my services to you for free. I’d like to contact each one of these suppliers and find the best deal for you. If you are serious about buying.
nice to meet you
which origin you have for black pepper
*I have suppliers exporting from different countries. Do you have a preference?
nice to meet you to!?
*and what grade are you ,looking for?
***520gl to 560gl
*ok. good. where would you like it delivered?
***trail order 250 ton
CIF jebel ali port dubai
what is your target price per metric ton?
***as per our company policy we don’t disclose target price.. we work with the lowest bidder
*I understand that is a tough question, but I am not the supplier.
I will be contacting hundreds of suppliers for you and each of them will be giving me different prices. I can’t keep running back to you after each price.
So I need to know which ones I can reject straight away according to your maximum target and terms. If I don’t have your absolute maximum target, I will be wasting many many hours which would be counter-productive for us.
So give me your best price and I will try and find you something even lower for you if I can.
***i understand your concern..but that’s how commodity market works
..if you know the market of black pepper..then we will have a fair understanding about the market price
we never give target price
we are an international trading house
*i see. So this inquiry is for a client then?
***we deal in various commodities vertical
we will supply
well, in that case you have nothing to worry about since we are in the same line of business.
***even our clients never give target price
We are an leading organisation engaged in the business of international trade.We also offer trade facilitation, representation & liaison services to our clients in India, Hong Kong, China, USA, Canada, UAE, South Africa, Australia, Indonesia, Bangladesh, Nepal . We’re blessed with a reliable network of partners/service providers & team of like-minded business owners across the globe.
We deal in following commodity verticals
1)Farm Inputs Fertilisers & Grains:
Urea N 46 fertiliser, di-ammonium phosphate DAP fertiliser, monoammonium phosphate MAP fertiliser, powdered monoammonium phosphate PMAP fertiliser, MOP, complex fertilisers, npks, Pesticides, insecticides, Plant growth stimulants
Wheat, Maize, Sugar, Spices, Soybean, Rice, Pulses, Dry fruits, Coconut, Sunflower oil, Refined Sunflower oil, Olive oil, Mushrooms, Coriander, Herbs, Coconut oil, Mustard oil
2) Petroleum, oil & Gas :
Bitumen, Lubricants, Petrochemicals, Pet coke, charcoal, coke, Diesel, coal, firewood,LNG,LPG,JP54,D2,D6,Crude oil
3) Ores, Minerals & Metals :
Silica sand, Iron ore, Zinc ore, Quarts products, Gypsum, Nickel ore, Manganese ore, Phosphate, Aluminium foils & products, Brass & Copper products,
4) Building & Construction Materials :
Stone aggregates/stone chips, stone boulders, River sand, Concrete slippers, Bitumen, Blocks, pre-fabricated structures, Marbles, Tiles, Pavers
5) Scientific Instruments, Laboratory scientific equipment:
School scientific laboratory equipment, Civil Engineering Laboratory Equipment
6) Processed Food & Beverages :
Canned food, Coffee beans, processed food, Fruit pulps, Fruit concentrates, Milk powders, Food products, Juices
7) Wood products:
Timber, Veneer, Ply board, MDF board, Plywood
*my clients always give me a target price. And a loi
anyway, I would love to work together on this but not without a target price. I have a good database of reliable suppliers and they don’t like it if I contact them only to shop around for prices. looks like I cant help you
***ok let me give u a target price
3000 to 3200 USD
*that is on the low end
so what price you can achieve
*let me check with my suppliers. I know the prices usually range between 3500-4100 USD do you have loi from your buyer?
*and have you ever worked with another agent before?
***Ashish: in black peper
*in any commodity
***here are so many agents, mandates,brokers
Ashish: we work with
*so you have no problem signing a contract with me and splitting the commission 50/50 with me?
***we don’t work that way
*take a %, I suppose?
***you can get a price from your supplier and add you commission on top of that and give us final price
*ok, I have no problem with that
What payment terms is your buyer looking for ?
***we never bypass our partners
*good to know
***we will issue sight LC
*and accept a 30% advance payment as well?
*really? most suppliers ask for 30% by TT and 70% by lc
you must know that
there are only a few suppliers accepting 100% lc and because they do, the rice per metric ton is always higher
***we don’t work with such suppliers…we give 100% irrevocable sight LC of prime bank
***SGS testing is mandatory
*well, it’s good to know
SGS, of course .
***how can we give 30% advance ..who will take the risk of quality
*I only have suppliers in my database that I have personally checked out.
they gave me certain documents I verified to prove to my buyers they are trustworthy
a lot of experienced buyers know that those suppliers ask for an advance payment, because they understand that the buyer is not the lonly one taking the risk.
the suplier is too.
***we work on LC terms only
we might offer advance payment for repeat order
once we have attained confidence
with our suppliers
*that is good to know. Like I said, I only have a handful of suppliers in my database accepting 100% payments by LC, but I will do my best
*** try your luck dear
*I would appreciate it though if you tel me if you have found a supplier yourself in the meantime. Can we agree on keeping each other posted?
*thanks. I appreciate that.
I will be in touch with you shortly
***you can tell me the commodities in which u r strong
will work on those
one more thing: are you looking for a CIF or CNF price?