In foreign trade, sometimes foreign traders can be very fortunate and confront with some large customers and if the order can be closed safely, they can get a great amount of sales commission. And it just robs many foreign traders of their common sense.
Y developed an Iranian customer recently. The customer hadn’t cooperated with Y’s company before but he asked for 100% T/T against the copy of B/L or 100% L/C of Bank of Kunlun. At the beginning, Y agreed to use 100% L/C while the customer rejected to place orders owing to the price.
The second time, Y accepted 100% T/T against the copy of B/L but the customer still dissented with the price. For the third time, Y finally came to an agreement on the price but as the customer intended to buy customized products through special design, Y’s boss asked the customer to prepay 30% of the payment through Dubai.
The customer was irritated and stated that he would never effect payment through Dubai and complained that the payment method had been affirmed at the very beginning while Y intended to alter it and he couldn’t believe Y any longer.
Y’s boss was afraid of the risk and the customer lost his patience so Y could only have her last hurrah and suggested that the customer use 100 % L/C but the customer told her that he had placed orders to Y’s competitor.
Y’s annoyed and the customer was disgusted with her and Y drooled over the mouthwatering sales commission and wondered what she could do to persuade the customer to place orders to her.
We shall tend to develop customers of high quality and never spoil the ship for a halfpennyworth of tar.