B2B Breakthrough Podcast

Episode: Win-Win Supplier Negotiations: From Transaction to Partnership with Titan Network
Host: Ciara Christo Lyden (A)
Guest: Leiden Smithers, Sourcing Strategist, Titan Network (B)
Date: December 23, 2025

Overview

This episode delves into the art of B2B supplier negotiation, moving from transactional dealings to creating true partnerships. Leiden Smithers, sourcing strategist from the Titan Network and founder of China Magic, shares his hard-earned wisdom on asking the right questions, negotiating favorable payment terms, and cultivating relationships that drive sustainable growth for small business owners. The conversation offers a step-by-step guide to vetting suppliers, building trust, and leveraging negotiation tactics, both online and in-person, with a particular emphasis on the nuances of working with Chinese factories.

Key Discussion Points & Insights

Introduction to Titan Network and China Magic

• Titan Network is a mastermind community helping e-commerce sellers, initially focused on Amazon but now expanding into AI and social commerce.
• China Magic: A program within Titan that takes students to the Canton Fair, teaching them how to find reliable suppliers, visit factories, and negotiate key terms like MOQs and pricing.

The Mindset Shift in Negotiation (02:06)

• Many new entrepreneurs view negotiations as a battle, but Leiden stresses the value of the "win-win" approach:

  "We have to find a situation and stop trying to tackle each other and fight each other, but put the problem on the other side of the table, sit on the same side ... and figure out how we solve the problem together." – Leiden Smithers (02:20)

• Viewing the negotiation as a partnership creates long-term value for both sides.

Green Flags: Vetting the Right Supplier (03:04)

• Key questions to ask:
  • “How many workers do you have?” (03:12)
    • Reveals company size and potential for flexibility in terms.
  • “Can I visit the factory?” (04:05)
    • Indicates transparency and signals seriousness.

    "Letting them know early doors you want to visit the factory engages them... They automatically hold you higher in regard." – Leiden (04:53)

• Openness to factory visits is a major green flag, refusal is a red flag and could reveal if you're dealing with a trading company instead of a factory.

Trading Company vs. Factory (05:42)

• Trading companies can offer lower MOQs and better pricing in certain cases, especially for bundled products, but direct factory relationships often yield stronger partnerships.
• The crucial point is transparency: it’s fine to use trading companies but always clarify who you're dealing with.
• Example: Using a trading company to bundle products (06:40–07:24).

How Suppliers Evaluate Buyers (08:15)

• Suppliers seek committed partners, not those looking for minimums or only interested in the lowest price.
• Advice for buyers:
  • Articulate your long-term vision and credentials, even if you haven't achieved large sales yet.
  • Project staying power and present future volume as part of your ask.

  "You're trying to engage with this factory and convince them to invest time in you ... they're going to lose money [at first] and they'll be willing to if the upside is worth it." – Leiden (09:42)

Nurturing the Relationship During Growth (11:03)

• As orders grow, renegotiation happens—focus on delivering what you previously promised.
• Important tip: Pay early on payment term agreements before requesting better terms next time (11:43).
• Transparency: Share your real margins and costs to support your requests and work on joint solutions.

  "If you're transparent, they're going to be transparent ... Let's work together on it." – Leiden (13:26)

Navigating Partnership Challenges (14:03)

• If issues arise (misalignment, drop in quality/response):
  • Ask “why?” to identify the real source of problems: change in staff, outgrowth, or shifting priorities.
  • Leverage options–have a backup supplier before threatening to walk.
• Pivoting without burning bridges: If you outgrow a supplier, offer referrals or split orders (16:19).

Online vs. In-Person Negotiation (18:00)

• Preferred: Negotiate key terms over video or in person—not just WeChat or email—to read reactions and build rapport.

  "I always give before I take ... Here's where we're at, I'm appreciative of this ... I want to give you a bigger order if you can give me better payment terms. You always have to give something in return." – Leiden (18:54)

• Chinese suppliers value negotiation and expect it; face-to-face (or video) builds connections and trust (19:55).

Negotiation Success Stories & Tactics (20:32)

• Leiden’s journey from no capital to securing extraordinary payment terms (180 days) by building real relationships, presenting growth potential, and persisting across supplier types (21:44–22:57).
• Negotiation hack: Tell suppliers you’re visiting Canton Fair—even if you aren't—to prompt better offers, as they know their competitors will also be present (23:10–24:44).

  "Just telling them you're going to Canton Fair [can] sharpen their pencil pretty quick." – Leiden (24:29)

Setting Strong Terms From the Start (25:18)

• Contracts: Get everything in writing to avoid miscommunication, but balance with maintaining good rapport (25:18–26:36).
• Payment terms: The #1 negotiation point for long-term benefit—even if you have plenty of capital, it protects you and cements partnership, not just a transaction.

Memorable Quotes & Moments

• On the right approach to negotiation:

  "Stop trying to tackle each other and fight each other, but put the problem on the other side of the table." – Leiden (02:19)

• On supplier red flags:

  "I like to ask, can I visit the factory? ... If they're not willing to be open and transparent, that's a red flag." – Leiden (04:10)

• On articulating your vision as a buyer:

  "It's important to talk about yourself and why—you're selling yourself as much as you're selling your product." – Leiden (08:38)

• On building trust as you grow:

  "If you've promised something in a negotiation, make sure you hit that. Pay early, not late, before you ask for more on the next order." – Leiden (11:42)

• On payment terms and partnership:

  "If you don't have payment terms, it's a transaction, not a partnership." – Leiden (27:24)

• On negotiation as a national sport:

  "I always joke that the national sport of China is negotiations, so they like doing it." – Leiden (19:31)

Important Timestamps

• Negotiation Mindset – 02:00–03:00
• Vetting Suppliers & Red Flags – 03:00–05:00
• Trading Companies vs. Factories – 05:42–07:58
• What Suppliers Want to See in Buyers – 08:15–11:03
• Scaling & Renegotiating – 11:03–14:03
• Fixing a Broken Partnership – 14:03–16:19
• Switching Suppliers the Right Way – 16:19–18:00
• Online vs. In-Person Negotiation – 18:00–20:32
• Negotiation Anecdote: 180-Day Payment Terms – 20:32–24:44
• Golden Negotiation Hack (Canton Fair) – 24:44
• What to Get in Writing – 25:18–27:34

Actionable Takeaways

• Approach negotiations as the groundwork for partnership, not combat.
• Vet suppliers with smart, revealing questions; always check for transparency.
• Sell your own vision and future, not only your current order volume.
• Grow trust by keeping your promises and being transparent about your business.
• Leverage in-person or video negotiation when possible—it's culturally and practically more effective.
• Always secure clear, written agreements, but don’t lose the personal touch.
• Prioritize payment terms—they share risk and signal partnership.
• Use the Canton Fair as negotiation leverage when applicable.

Resources Mentioned

• China Magic Trip – Led by Leiden Smithers, for hands-on supplier negotiation and Canton Fair tours.

For more practical negotiation guides and B2B e-commerce insights, find B2B Breakthrough on leading podcast platforms or visit Alibaba.com.