How NOT to pay extra for your next purchase
Working in the industry for the past 13 years witnessing few things bunker buyer are doing which is counter-productive and fail to achieve their objective of getting the most price competitive products
- Last minute fixing
Buyer will ask for days / weeks and vessel suddenly inform they will come few days earlier or overlook a public holiday before the ETA, as mentioned in previous blog post, last minute order tend to make the price higher because of fewer supplier can do also the table is turned now the buyer is in desperate mode. Always leave a reasonable lead time of purchasing and avoid paying premium by constantly checking with your channel for the supply barge situation / cargo availability
2. Quotation marathon
Its completely normal to ask more than 1 days to check the market or you have a gut feeling / strong market signal that the next days is gonna be better price. However in some port when there is only 1-2 supplier and after the 6 days of “market research”, supplier think its just another check or get annoyed so they will quote some random price just to get rid of the daily hassle. When the lead time come and you really need to fix, supplier are less enthusiastic to support as expecting to receive a response of ” Not fixing today buyer want to see tomorrow ( again ). ”
3. Firm Counter from other universe
Price change everyday and sometimes we can get a better price than expected but we also have time miss the best windows. However asking the below question/ statement wont help
- ” I know today up 20 but can you do back yesterday price ?”
- “My CP signed with the oil price like 20 USD lower can you do it ?”
- ” Other port is USD30 lower you should be more competitive “
- “I saw the indication email from other trader their indication price is 30USD lower “
Giving a FAR FAR FAR off feedback / firm counter to your sales channel it just indicate you have no idea on what the market is doing or think supplier offer you some crazy price. There are always room for negotiation in bunker purchase but at the end of the day this is not a China flea market. Have a reasonable negotiation and make your supplier / trader have a feasible target to achieve your goal.
Until next time !
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