5 reasons why you can’t get exactly goods you want from China
Many of you are doing business with China because China is now biggest OEM country, and most of you will enjoy the benefit of doing business with China, but at the same time, there are many problems followed. Today i want to talk about one problem many of you met before or will meet in the future (hopefully never will) and why it happens.
YOU GOT WRONG GOODS or NOT THE ONE YOU WANTED! Is this problem big enough to be a headache for your business? I guess yes, even you never have this problem before, just imagine that will also drive you crazy! Here are 5 reasons i listed for you, according my experience and investigation.
1. Are you sure your Chinese supplier 100% understand your needs?
Communication is very important in every kind of business doing with China. How many times when you came to your supplier and explaining just your ideas? Or you just describe how that product you need is used for rather than how that product should be?
Most of time, your supplier in China will say “yes” when you try to describe your needs and ask them if they can make it out. Competition is very strong here in China, getting orders are first issue by then. Especially when you and your supplier have never cooperated before, and your supplier is not a very big company, what is worse, you are discussing with them on internet, not face to face meeting!
So always find and cooperate with suppliers who will ask you question about products and manufacturing, rather than those who only say “yes” to you. be patient when your supplier asking questions and confirm again and again with you, especially when you just gave them “idea” of product.
2. Beware of LOW PRICE!!
We care about profit, that’s basic rule every business man should understand, so lower and lower price… and even lower….
But every coin has two sides, mind that damn low price! Sometimes the evil seeds is already plated when you choose the lowest price!
In the 1st reason, i mentioned that some companies are eager to get orders from you, of course they can offer you a lower price than other competitors, But instead of using original or qualified spare parts or components they will using a lower grade standard ones to match the lower price for you, but without inform you at all.
For example, standard component of a plastic toy should all using Material A in higher standard. but when they offer you a lower price, they may have to use like this: Material A outside and lower standard Material B inside. So at the end of this business cycle, who is beneficiary? i think no one is.
Please pay attention to this Low Price problem, it is very common when doing business with China, especially when that price is lower 30% than normal price, you should ask them, where and why is such a big price difference, not just accept it like you are so lucky, your Chinese supplier may also laugh behind your back, his trick perfectly work on you.
3. How many times your requests for products are passed on in the whole business process?
You must know that the importance to communicate directly, and many experienced businessman will advise you that “GO DIRECTLY” when doing business in China, but sometimes it is very difficult to achieve. to explain, here is an example:
You got requests of products from your client, and let’s say it is kind of new field for you, but anyway you can find supplier in China with this requests. You finally find company A, who is able to manufacture for you, you may think that you already minimized your supply chain by “going directly” and the communication cycle is ended here. But let me tell you that your supplier’s supply chain has just begun.
Company A need to purchase raw material, spare parts, and so many others components, they may have 2 purchasing stuff working on that and they will choose their right suppliers as well. Actually these steps are right here in your supply chain, but you may not consider it.
Sometimes you have to do business with trading companies in China, and this chain is even longer.
4. Did you find a good supplier who is responsible for his mistake?
Sometimes the problem just happened, like the products surface finishing is wrong it should be nickel plated but your supplier (probablely his electroplate factory) made a mistake and now the surface finishing is chrome plated.
According to my experience and i have also discussed with some exporter in China, most of them will try to send it to you anyway, maybe you won’t notice or when you receive it, everything is settled now, you may get mad, but you have no idea just accept it and you should go and persuade your client.
So if you ever met a supplier who will take his responsibility to rework on e-plating work, cheers!! you are lucky enough to work with them.
5. Never forget Sampling and QC
If you want save money, please don’t put sampling and Quality Control in first place, it is very important to check sample and compare sample with massive production, and write in your contracts.
Some products are not suitable for sampling, like machinery, please ask 3rd part inspection or arrange someone who can inspect for you locally. for instance, i will record a video for clients of diesel generator testing and upload to Youtube for clients’ review, after they checked this video, the rest payment will be made to lease the generators.
In my opinion, every order you make with China, inspection is a must, even you have ordered same products for many times.
I know that there still have some other reasons out there, what do you think? you can leave your comments below!
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