Tuesday, March 27, 2018

Tips to saving your sourcing cost on literally checking the factory before placing order

Checking factory will be no problem if you have a huge profit for the order if you’re going to place, however, if you’re going to place small orders such as USD10000 to USD60000, the profit you’re going to make even can’t offset the cost of ticket around and accommodation cost, what is the meaning on placing the order in the end you won’t make any money? Especially competition soaring, factory cost and your wholesaling cost all pressed very low.

Is a good thing to press the factory price to very low so you can have enough profit to fly to check the factory when you want? Five to seven years ago, you can say yes. Goods made in China is very cheap, and competition loose, you’re selling at a very profitable price. Now an order of USD90000 you won’t make a profit of USD9000 or even lesser, or you still expect you could make the factory selling in a half price usd45000? Factory have a cost on manufacturing everything, better component cost higher price, labor cost higher if you want put more time to make the goods done better or you’re pressing the time to make the factory shipping the good earlier. It's wise to keep the goods done in a suitable cost, so the goods have a relatively good standard and durable quality. Poorly assembled goods have a lot of problem, especially when you pressed the price to extremely low that factory can barely balance their cost and selling.

No trust is a problem on business. This is a problem that makes you suspicious, that is no good to your supplier. If your client keeps a suspicious mind on you, what do you think? Of cause you will blame: I will no need your order, no need your money, because I want a peace of mind. Especially those suppliers even don’t make some money on the buyer’s order, they said, I just busy around, but I don’t make some money on the order. if you still blame on them, what do they think?

Most Chinese boss are very hospitable,5 years ago when there is a foreign guest come for visiting, they’ll be very glad to invite them to dine in a five-star hotel. There is a change in current times, factory profit very slim, many clients come bringing small orders and there is a doubt in future following orders. One boss said: I have a client from India, he doesn’t place any order before he come visiting factory, now he came. I got his total order of usd5000, and our manufacturing cost usd4860, and I invited him dinning in luxurious and costed usd300, so finally I got a profit of -USD160. 

If the person you had contacted over 3 months, then most probably he is doing a serious business. No cheater has such a patient contacting you over 3 months and asking you buying a thing even himself don’t understand the product detail. A Chinese company bank account is a proof to mean a legal company, also you can learn more information from the company from their website, e-mail correspondence. 

Quality do actually concerns too much with the price, while on international sourcing, many buyers, importers and famous brands would like to deal with a professional trade company rather than a factory directly to lower their sourcing cost. On the same product, too many factories are selling twice high price because they think export means higher profit. However, a trade company understand in the industry well, they know which factory have the lowest cost and the best good quality, in their hands, they have hundreds of local factories and they could compare and choose which one could do the item of their clients' goods well and fast each time. The misunderstanding is many clients would insist buying the same products from factory directly in a higher price rather than the lower price from a trade company for the same product. The truth is the importers only have 10 suppliers, but trade company have 100 suppliers. And the trade company have a professional knowledge and understands how to make the goods properly packed and done in an exporting goods' quality standard. Factories delivery period long because they need to finish one order first before they could do next, however, trade company can make the order produced immediately, because they know which factory are in busy and which one is waiting orders to do. By dealing with a trade company, importers sourcing cost is greatly reduced, quality improved and delivery time shortened.

No comments:

Post a Comment

Here it’s why you should stop compare the price of solar panels?

1, Each factory have their own manufacturing cost, the material cost of the solar panels on the same power. 2, Different factory have their ...