When you have decided you must buy from China the next step is to navigate the potential minefield and successfully come out the other side.
We often visit potential customers to be told “we buy direct” and after a short discussion find that it is neither direct nor have they tied down all the costs, visited the factory or carried out the certification or quality controls.
Usually there are many less visible costs with several margins in a transaction, payment terms, consolidation, shipping, forwarding and road haulier costs in both China and in the destination country to name but a few.
Frequently it is possible for us to make a saving on these before we even start on the product costs. In some instances we will visit factories and see branded lines being produced. We find that they have been sub contracted by another factory that is making it for a trading house that has been contracted by a UK agent. While this is by no means true for everything it is certainly an example of how things can work very differently in the Far East to a UK or European company. This makes communication lengthy and often the reason for errors.
Sometimes people who say they are the manufacturer are in fact only an agent and have no actual control over the manufacturing process. The large number of agents stem from the days when overseas travel was restricted and factories relied on the agents to sell their products overseas add to that the fact that China makes just about every product and the sheer size of the county.
Dealing with factories in China can offer many advantages and be very profitable if you know what you are doing. To do this you need someone on the ground that understands the business and will look after your orders. A person who can report to you in English, inspect the consignments and deal with matters on the ground. But most importantly someone who you can trust to get the job done effectively and in a fashion that fully meets your needs.
