This article is original from TonyPromos.com blog by Tony Chen:
Even if you want to place an order for HUGE quantity to the China Factory , still you won’t get the cheapest price...
Everyone hopes to get the best quotations from China factory, for good quality items in cheap price. but after searching suppliers on Alibaba , or spending a long trip to attend China Expo like Canton Fair. You will get lot of Quotations from hundreds of suppliers. but the results will disappoint you, and you will always feel Like--WHY SO EXPENSIVE?! (Even though the quantity was huge!).
Below I am going to tell you why this happens most of the time.
A. You cannot find the real manufacturer at all.
1. Real Manufacturer’s does not have their profile on Alibaba or any other online business trading platform. Because it need lot of experience & English as well, so it’s impossible for them to publish their products information on website and keep it up to date, so there is no way for foreign importers to find them online. Also many Manufacturer’s prefer to force on their production line instead of marketing.
2. Most of the CEO’s & other staff of the Manufacturer Companies are in their older ages.
In their pre education system English language was not so common in schools & colleges. Because of the Lack of proficiency in English they are not able to communicate effectively with English speaking clients. So normally the Manufacturer Companies get orders through Trading Company or through local Market Wholesaler.
3. Manufacturers have Shortage of talent resources
As it’s not easy for a normal factory to employ an experienced marketing staff ,which promotes their products in open market or facebook ,linkedin and attracts clients & foreign importers. (Currently the average marketing management level in In China is still lower than occident counties)
4. What’s the factory situation in China?
Normally each city have one main Industrial production area, so if you want to find a China factory for any specific item you have to explore the area for it. For example, sticky items all come from one city known as Niesanli, and there are more than 300 real factories (big and small) in this area, to find the right one you are looking for, the easiest scenario will be to walk through its industrial area and visit factories one by one, knock at their gates and check thoroughly if they are producing that item. But this is not going to be easy as it will take lot of time, and obviously as a foreign person you don’t have this much time to waste.
5. What you will do when you plan to search the real manufacturer?
Well I think 95% of the people will only search for it on Alibaba, Google, attend exhibition fairs, or will visit China wholesale market like Yiwu etc. But it’s still not good enough as you won’t find the right factory. In China (the huge populated country) the most reliable way to find real manufacturer is through personal communication with locals.
B. You spent all your luck and finally found the right manufacturer, but at the end you are not happy with their quotation.
1. Culture difference lead to difficulties in communication.
You may get higher quotation & ask the factory about the reason, their possible answer will be that “they are busy at the moment completing other orders”. You might think “What!?” and does not understand at all. Actually what the factory wants to express is that if they going to arrange your order by now they will need to hire more Temporary workers, which means extra cost, so similarly the final price of the product will also increase. But the factory have no idea that they might alter ways to make product (like change the product mold) or maybe they can quote a cheaper price for later, when they are free to do so.
2. You are a new customer for the China factory.
Chinese factories will trust native Chinese buyer, more than a foreigner buyer. It is as same as like in your country people will feel more secure to do business with locals, as it will ensure them that all their bases are covered… so similarly the Chines factory prefer to deal with Chinese companies, that is why they may quote to you with higher price to reduce somewhat of this risk “somehow”.
3. Maybe you are very good at Product marketing and sale.
But definitely you don’t have much idea about how the product manufacturing operates. It will make it harder for you to negotiate with the factory, which will process it in unreasonable price. For example, for below building block all the suppliers quotes $0.2 - $0.25 USD/each. If I get one buyer to get $0.13 USD/each, would you believe it?
Yes, Our Team TonyPromos can do it in the minimum price, because they are professional in Sourcing and Buying.
Sharing your experience of finding China Factory and leave comment below,we will give some advising to make you do a easy work!!
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