Price increases from China suppliers are one of the most common frustrations buyers face. They're also one of the most mishandled — because the right response depends entirely on why the increase is happening. Having worked on the factory side before moving to procurement, I've seen this from both ends of the table.
They quoted too low, and now they're asking for more after the order is placed. Their calculation is simple: if you agree, great. If not, they either absorb the loss or hold firm on the increase.
If your order can't move to another supplier
- Tell the supplier their internal mistake cannot affect your market position
- Your retail price is fixed — a change now causes serious disruption to sales and internal planning
- Ask them to honour the original price for this order, and commit to discussing adjustment on the next one
This buys time. Once the current order is fulfilled, you have options — including finding an alternative supplier for future orders.
The most common scenario. Before responding, verify it — raw material price trends are trackable. Check the annual movement of the relevant materials yourself first.
The negotiation sequence matters
- Start by pushing back firmly
- After a few days, soften and open a conversation about the percentage
- Moving from firm refusal to negotiation signals seriousness without closing the door — suppliers will read your posture and adjust their ask accordingly
Worth knowing: the initial increase almost always includes a negotiation buffer. Suppliers expect to come down. Agree immediately and you've left money on the table.
Two additional levers
- Lock in a price validity period upfront. A clearly documented price hold — with a defined timeframe — gives you contractual protection against mid-order increases. One of the most buyer-friendly terms you can build into an agreement.
- Share your commercial reality honestly. If the increase goes through, your product becomes less competitive, sales slow, future orders reduce — not good for either side. Sharing this as context, not a threat, can shift the dynamic more than a hard negotiation sometimes.
When exchange rates shift — USD/RMB, for example — suppliers sometimes use this as a basis for a price increase. The negotiation logic is the same as Case 02.
A structural fix worth considering
- Settle in RMB directly. This approach is well-established now and many suppliers can accommodate it.
- On your side, work with your local bank to purchase RMB and lock in a rate.
- This removes the exchange rate variable from the supplier relationship entirely — and often simplifies the price conversation considerably.
Happy to hear how others have handled these situations — it probably looks different depending on the category and the supplier relationship.
Work with Irene
From the factory floor to the buying office — I have worked both sides. I know what suppliers say to buyers, what they leave out, and exactly what buyers actually need.
I work with European and Australian businesses that need someone on the ground in China — for supplier sourcing, quality oversight, and projects that cannot afford to go wrong. If what you have read here sounds familiar, I am happy to have a conversation.