Negotiating With Japanese OEM

Negotiating with Japanese Original Equipment Manufacturers (OEMs) can be a fruitful and rewarding experience for businesses looking to source quality products. With Japan's economy ranked as the third largest in the world, its companies are renowned for their precision and attention to detail, making them attractive partners for businesses looking to import high-quality products.

 

In contrast, China has often been seen as a less reliable source of goods due to quality issues, long lead times, and issues surrounding intellectual property theft. Additionally, the recent trade tensions between the US and China have made it more difficult for businesses to import from China.

 

When negotiating with Japanese OEMs, it is important to understand the cultural differences that exist. In Japan, relationships are considered more important than individual transactions, and trust is built over time through face-to-face meetings and frequent communication. This means that negotiations may take longer, but the end result is often a stronger relationship between the parties involved.

 

To negotiate successfully with Japanese OEMs, it is important to:

 

Build a relationship: 

Begin by showing respect for Japanese culture, language, and customs. Establishing a good rapport is key to successful negotiations.

 

Be patient: 

Japanese negotiations can take time, and decisions are often made by consensus. Be prepared to invest time and effort into building a long-term relationship.

 

Be honest: 

Japanese culture values honesty and integrity, so it is important to be transparent and forthright in all dealings.

 

Understand the details: 

Japanese OEMs are known for their meticulous attention to detail. It is important to be well-prepared, understand the product specifications, and be able to answer questions with accuracy.

 

Be flexible: 

Japanese OEMs are often willing to negotiate, but they may have different priorities and concerns than US businesses. Be open to compromise and finding creative solutions that benefit both parties.

 

It is well known by most Japanese companies are known for their high-quality manufacturing processes, which can result in better-quality products and less need for post-sale support. However most overlook the major advantage of dealing with Japanese OEMs, and that is the yen is weaker than the US dollar, making Japanese products more affordable.  

 

Negotiating with Japanese OEMs can be a valuable experience for businesses looking to source high-quality products at an affordable price. By understanding Japanese culture, building relationships, and being patient and flexible, businesses can establish successful partnerships that benefit both parties.