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How to negotiate with a food exporter in Colombia?
How to negotiate with a food exporter in Colombia?
When a company starts importing staple foods from Colombia, it usually focuses on requesting quotations and comparing prices between suppliers. However, international negotiation does not work the same as a local purchase. The price per ton is only one part of the operation.
In foreign trade, negotiating means agreeing on logistical responsibilities, risks, production times, documentation and supply continuity. An importer who negotiates only price normally ends up paying more in hidden costs.
This article explains how to properly structure a negotiation with a Colombian exporter to build a stable and profitable commercial relationship.
Understanding the exporter’s role
A commercial exporter is not always the producer of the food. Its main function is to organize sourcing, consolidate goods and execute the international operation. For this reason, negotiation must focus on the entire operation and not only on the origin of the product.
The exporter controls:
- Supplier selection
- Quality control
- Export packaging
- International documentation
- Logistics coordination
The importer controls customs clearance, permits and distribution at destination. Understanding this division prevents requesting incorrect responsibilities during negotiation.
Price is not the first point to negotiate
Many buyers begin by asking for the FOB or CIF price immediately. However, before talking about values it is necessary to define operational conditions.
The variables that change the final price are:
- Purchase volume
- Order frequency
- Packaging type
- Destination port
- Selected Incoterm
Without these definitions, any quotation is only indicative.
Define the appropriate Incoterm
The Incoterm determines who pays and who assumes risk at each stage of transportation. Choosing it correctly simplifies the operation and prevents later conflicts.
The most commonly used in food trade are:
- FOB: the importer controls international freight
- CFR: the exporter hires transport
- CIF: includes international insurance
Importers with logistics experience usually prefer FOB. New importers often operate better under CIF to simplify the initial operation.
Negotiating volumes and continuity
In staple foods, volume is more important than the one-time order. The exporter can offer better conditions when predictability exists.
Therefore it is recommended to negotiate:
- Purchase projections
- Supply frequency
- Possibility of scheduled replenishment
This does not imply a strict contractual obligation, but commercial planning.
Agreeing on clear specifications
Staple foods seem simple products, but small variations create conflicts. Before closing a purchase, product characteristics must be defined.
For example:
- Grain type
- Moisture
- Presentation
- Weight per package
- Shelf life
This prevents future claims and facilitates future operations.
Payment terms
International payment depends on the history between the parties. In first operations it usually works with partial or full advance payment.
With stable commercial relationships, alternatives may appear such as:
- Documents against payment
- Trade credit
- Deferred payments
Conditions evolve according to trust and volume, not only by initial negotiation.
Production and dispatch times
A frequent mistake is assuming the goods are immediately available. Many foods require prior preparation for export.
During negotiation the following must be confirmed:
- Preparation days
- Consolidation time
- Shipping frequency
This allows proper inventory planning.
Negotiating operational communication
The international commercial relationship depends more on coordination than on the contract. It is important to define who will be the operational contact and how progress will be reported.
Good practices:
- Written confirmations
- Operation schedule
- Advance sending of documents
Common mistake: negotiating like a local purchase
Many importers try to negotiate aggressive discounts in each operation. This usually generates the opposite: lower logistical priority and unstable operations.
In international trade, stability usually generates better conditions than pressure for one-time price reductions.
Building a commercial relationship
Successful importers do not constantly change suppliers. They develop a relationship that allows planning inventories, reducing logistics costs and ensuring availability.
The initial negotiation does not seek to close a single sale, but to establish a repetitive operation.
Conclusion
Negotiating with a Colombian exporter is not only about obtaining the lowest price. It means structuring a clear operation where each party knows its responsibility.
When the importer defines volumes, logistics and Incoterm before the price, the operation becomes stable and predictable.
If your company is looking to establish a supply relationship from Colombia, contact us here to evaluate your import project.
