ARISE CREATIONS Sourcing
– ABC's of Export buying- April, 2008
PMS picker Calculators Cash X Factory Cal

 

FAQ: log

FAQ:// Asian Export price quotes//:if you have not asked they will not take the time to tell, if they say there has been no change, they likely don't believe you are sincere or won't take action when they actually deliver a lower grade of material. Or most likely they have but so much profit into what they are asking they have no concern.

FAQ:// Sourcing in Asia, not just China, sourcing quots follow two formats.
1. This buyer is believed not to be sincere and the makers say they have it, and quote  lower price to "label the buyer " for other factories to spot and not waste their time.
2. The buyer has demonstrated a shared risk and is more likely to actually be trusted in business.
This second method costs the company a significant amount of money to actually send a person to inspect the raw materials and the factory, this maybe more than a 3 day event for even a simple sourcing project but from remote province. We pay QC merchants expenses and fee to collect the information that is special to order.


FAQ:// The FOB advantage, The established practice in receiving special low FOB pricing is counterbalanced by the Production Sample process. What that means is that you are provided with a sample that has come from the production line. The line stops until you have approved the production sample. Once the sample is approved the commitment to complete the contract and take delivery of the order is finalized. Only in the event that there is a significant deviation in the product delivered from the sample is any consideration given to changes in the agreement.

FAQ:// The FOB agreement, comes under the regulation of the Chinese governments customs department.
Bottom line is you get a discount for being a professional working in a shared risk proposition. For this reason there will be a fairly frequent " Approval " process so there will be no surprises when the production sample comes off the line. We take great pride that we have never had a single order that was undeliverable or returned

FAQ:// Manufacturing deposit or full pre-payment, 25-30-50% .
We like using the factories that require a higher deposit because they always certify they have possession of all the components for the full run when the production sample is made.

Some factories that quote low deposts 25% end up with "mixed lots", and they know they are going to get demands for credit on a percentage of non-returnable goods. so they build it into the price. These factories deal in volume and 1-way traffic, it is rare that type of item is totally unacceptable and it goes to a liquidator. The factory management  know what kind of  defects rate they will have when they don't have a full QC of the materials and also what rebate level to expect. So they get away with what they can, using a low percentage down lure, and counting on  their hedged bet of buyer behavior and expectations.

But knowing that if the customer is committed to having a high quality product and they can put enough down to make it possible, the lower cost is reflected in the quoted price you receive.  More importantly for everyone involved, there is significant reduction of costly time, wasted on "fixing something through rebates" that could have been avoided.


For More Information

 

Back

8 Harbour View Street, Wanchai, Hong Kong (SAR) 
E-mail: info@arisecreations.com
Website: http://arisecreations.com