Hoping to get some accurate information from people more experienced or knowledgable than myself...
I know that many BGDF users have self-published games using manufacturers such as Xinghui, Wingo, or Ludofact. I know another growing trend is to use a manufacturing liaison like Grand Prix or PandaGM.
My question would be–– Once you've gotten a quote, is it acceptable or advisable to negotiate with the rep?
One objective would be to find a price you are most comfortable with. Another might be to silghtly adjust your production profile without going into the hassle of formally asking for a new quote (which can take weeks).
Examples:
"You are offering to produce my game for €5.35 with 90 pawns. If you can do it at €5.00 with 95 pawns, I will sign today."
"I would agree to an order of 5000 if you can provide them for the unit-price for an order of 10000."
"€41,017, you say? Can we just call it an even €40,000?"
"If you can cover the shipping costs (or provide some other related service), we're in business."
"Your competitors claim to do the same work at 90% of that cost. Can you match that?"
When turning the question over in my mind, these things sprang to mind:
Seems like you could because...
a) In most of the world, labor costs are negotiable, even when raw-materials are involved. (e.g. construction, medical work).
b) It is inherent in the nature of a "quote" that the exact expense to the laboring party is inaccurate.
c) Haggling prices is a ubiquitous norm in China, which is where most of these manufacturers are located.
On the other hand...
d) Ascertaining diverse manufacturing costs is usually a complex calculation, whereas other the most commonly negotiated things (e.g. cars) are usually priced on the spot.
e) Small runs by independent designers rarely have the leverage of a large order size or a long-term relationship.
f) Haggling is best done when you never plan on seeing the seller again. If you have the intention of establishing a long-term relationship with a manufacturer, haggling can jeopardize this, as you run the risk of humiliating yourself, appearing naive, argumentative, stingy, or belligerent.
g) Along that line, reps will probably be more responsive, accommodating and motivated to work with you if they have the impression that you have the potential to spend a lot of money on their services, and squabbling over pennies 'tilts your hand' too much.
h) If a party agrees to work for less than their desired payment, they are encouraged to cut costs by rushing labor and using lower-quality materials, which can be a disaster in this industry.
So, the questions––
1) When dealing directly with manufacturers (and their reps), is it acceptable to haggle?
2) Is the situation any different with a manufacturing liaison?
Perhaps relevant to the second question would be–– How do these firms make their money? How personally invested are they that you work with them or agree to their quote?
I can imagine that the manufacturers may pay them a flat rate to represent them (like a PR rep) independent of how much actual work is sent their way. Or it could be that they submit your quote to their manufacturers and simply add a % commission on top of that. Or that they are an integrated entity with the factories that produce the ordered components. Do their representatives make commission on the contracts they secure? It seems like knowing the specifics here are very important to answering the question of negotiability. Can anyone shed some definitive light on this?
