Under-promise, Over-deliver, Part II, Vietnam
So I’m sitting in a factory office outside of HCM city as the factory General Manager is talking with another client. The inevitable discussion about product quality and how the production doesn’t match the samples comes up and the conversation starts to get heated. The client is arguing that because of the samples he expects better quality than what is currently being produced. The factory is saying that his expectations are unreasonable—“production quality is never 100%. Nobody can do perfect.”
The client, of course, is pointing out that the samples are much better looking than production and the sample from the factory is the standard he agreed to before he paid. The factory boss turns to me for support in his argument and says: “Mr. Dayton has been doing QC in Asia for many years, he knows that we can’t get it perfect, right?”
Now, this was the first time that we’d ever worked with this specific factory otherwise this manager would have known that this was a bad move on his part. I complete agree with the client—but, since I’m next in line (to be screwed?) I’m a little bit more diplomatic. But only a little. “Yes, there are often differences in production and samples. BUT since you have both a sample and a contract, I believe that you should be able to get exactly what you contracted for since the factory already told you they could do it.”
The manager who started out smiling was not pleased with my final answer. But, I was there to have the exact same conversation with him about our products. I wasn’t going to lie to this other guy (who was obviously lost as to what to do next) just to be nice to a factory that I was already displeased with. I’m all for being nice, but I’m not much on compromise when it comes to my clients’ money.
The other client ended up getting more than what he was currently getting, but not as much as he wanted or thought he had contracted for. He got (almost) what he expected because of three things he did–he had a contract (and brought it with him); he and the factory both signed multiple sets of samples (and he brought them with him); AND HE SHOWED UP AT THE FACTORY. Not doing anyone of these three things means he never gets what he wants.
I got a cheap bowl of Pho and a very silent ride back to my hotel. But I also got what I wanted/contracted for and stayed though two more days of production to guarantee it. I’ll take the crappy lunches, pay for my own taxies and endure the silent treatment if that’s the price of getting what I’ve ordered. It’s not what I want nor is it fun/comfortable. But it’s certainly worth it.
On day two of my visit the manager, obviously still bugged, asked me why I didn’t help him out a bit more with the other client. I told them that I thought the client was right and that I’ve worked with too many factories that make golden samples to have any empathy for “differences” in production vs sample quality.
He then told me that he has this same argument with just about every foreign client that comes to the factory (but not the local ones or the ones that don’t come to the factory, hmmm….) And then he launched into the same oratory that he used the day before with the other client. I listened politely, waited until he was finished and then, again, disagreed 100%.
Side Note: Listening to disarm. I have found that if you listen to, without interrupting, most people, but Asians in particular, and allow them to finish their arguments completely they are just blown away if, in the end, you don’t agree with them. It’s like they think that if they can just finish the sentence uninterrupted they win. I think that they expect you to interrupt each and every time you disagree and if you don’t interrupt, then you certainly must agree with all of what they’ve just said. When I first figured this out, I admit, I tried it a few times just for shock value. Now, I’ve seen it so many times over so many years that I realize that it’s more than just individual quirks. Yes, I’m stereotyping (“I’m like my mother, I stereotype. It’s faster.“). But I’m not saying Asians are dumb/bad/ignorant/purple/whatever. Relax. I’m just pointing out that expectations in communications are different and it’s to your advantage if you know those differences. Remember, if you can name the game, you don’t have to play it.
I told him that Westerners feel lied to if they get production pieces that are noticeable different (lower quality) then the samples they used for contract standards. Let’s be honest, in the West it’s bait and switch. I said that doing business like this is the best way to ruin relationships quickly. I tried to share with him the idea that he’s got to under-promise and over deliver, and right now he’s doing the opposite. Foreigners want the sample to be the basic standard—something that checks off all the boxes but in no way should be better than production. It’s the standard, not the exception.
Of course, he told me the same thing that every other factory tells me when we have the “golden sample” argument. Factories in Asia all face so much competition that they make perfect samples to get orders all the while knowing that production will never be that good. They just want to get the deposit and start the order assuming that they can work out the discrepancies in quality later; which they often can (or they can hide it if they know you’re not coming to do QC).
My take away was this: the factory isn’t stupid. They would rather get deposits and have this quality argument over and over than take a chance at losing orders with “almost” perfect samples and never argue–money is more important peace. And I can’t argue with this logic; when a good percentage of the clients either don’t do QC, don’t call them on the changes or don’t even show up at all, factories have really lost nothing by making golden samples. In fact they’re making money!
One more reason to always do QC.
The golden question:
“I wasn’t going to lie to this other guy (who was obviously lost as to what to do next)”
What to do next in this stage of negotiation?
Two things.
First, don’t give in. Stick to your position and demands and to the contract. If you’ve not given in on any other positions then you’ve got the high ground and you can keep pressing for the standard that you want/contracted for. There is almost always a way to get better.
The problems comes when you’ve agreed to some imprecise or overly broad tolerance levels or agreed to something else new after the contract was signed.
You must stick to your guns, but realize that, honestly, they probably can’t hit their sample standard (unless it was from a previous production run). Going from 80% to 90% is probably much easier than going from 90%-95%, so know this when you argue and don’t push so hard that you kill the order (they spit in your burger when you leave). And don’t ever tell them that ultimately you’ll give a little either.
Second, you have to know that this could take a long time. Factories know that you only have a few days with them. They know that your deadlines in the US (or wherever) will cost you money if you’re late. They know that they can wait you out and force you to accept lower standards because it will cost less than missed delivery dates.
So delay your flight a day and stay to get it done right. If you get what you want, stay another day anyway and confirm whats made really does meet the standard (or hire someone to do it for you).
Oh yea, pray a lot. Divine intervention can solve any problem!
Yes, Divine Intervention has saved my rear end quite a few times.
Also, we’ve found that acting more like a partner, and helping them to come up with solutions to solve the problem seems to grease the wheels a bit as well. We’ve often tried to pitch the negotiation with terms like “Here’s a way that you can get better quality for your future orders as well, and attract bigger, better customers.” However, this solution only works when they are hungry for those better, bigger customers.
Danny
It sounds like the way we write software – over-promise and under-deliver – late.
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