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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.
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