China is the future for any manufacturer or service provider.
That is no secret.
So do you buy directly, do you buy through a trader, a broker, an exporter? Do you source yourself and then involve someone there? The answer is that it all depends on your personal preferences.
In my case I use both.
What I do is I source the item myself through normal channels, websites, contacts, directories, etc.
Since I have experience I will normally know in which region to locate the item I am looking for.
Once I get the item I negotiate directly.
Once the deal is closed, then I involve one of my Hong Kong Agents in the operation.
Why do I source myself: in order to save time.
Since I have been doing this for so long I more or less know a lot of the costings as well as where the items are cheaper or of better quality.
Also it is good to be able to compare the correct price with different vendors.
Ultimately though one saves time in response.
Why do I involve an agent if it is going to cost me more: In order to make more money and to "cover my back".
In order to make more money? Confused? Don't be.
You got to remember that China is complicated, it is easy to find the supplier and negotiate the price.
However the possible headaches if they come, will come once the deal is signed, that is: quality problems, inspection problems, material delay, organising the shipment, sampling, and so on.
The 3-10% which your agent will charge (depending on the value of the operation) will mean that he takes care of all the handling of your deal.
If he takes care of all the possible problems or situations that may arise, that means I have time on my hands to concentrate on what brings revenues and cash to my business, that is, sales, sales, sales and more sales.
Most business people will tell you that today more than ever before, time is money.
You need to have that time in your hands to be able to increase your sales efforts.
In order to cover my back? Yes.
There can be different payment terms involved in the operation.
I know that if my Hong Kong agent is involved then I will do the payment to him and then he will do to the factory.
If something goes wrong with the shipment or if the goods are faulty or if there is a short shipment then he is liable to pay me.
Since he is earning a commission from you, it is also his responsibility to take care of payment safety.
I hope that was helpful.
Best to you, Manoj Shivnani
That is no secret.
So do you buy directly, do you buy through a trader, a broker, an exporter? Do you source yourself and then involve someone there? The answer is that it all depends on your personal preferences.
In my case I use both.
What I do is I source the item myself through normal channels, websites, contacts, directories, etc.
Since I have experience I will normally know in which region to locate the item I am looking for.
Once I get the item I negotiate directly.
Once the deal is closed, then I involve one of my Hong Kong Agents in the operation.
Why do I source myself: in order to save time.
Since I have been doing this for so long I more or less know a lot of the costings as well as where the items are cheaper or of better quality.
Also it is good to be able to compare the correct price with different vendors.
Ultimately though one saves time in response.
Why do I involve an agent if it is going to cost me more: In order to make more money and to "cover my back".
In order to make more money? Confused? Don't be.
You got to remember that China is complicated, it is easy to find the supplier and negotiate the price.
However the possible headaches if they come, will come once the deal is signed, that is: quality problems, inspection problems, material delay, organising the shipment, sampling, and so on.
The 3-10% which your agent will charge (depending on the value of the operation) will mean that he takes care of all the handling of your deal.
If he takes care of all the possible problems or situations that may arise, that means I have time on my hands to concentrate on what brings revenues and cash to my business, that is, sales, sales, sales and more sales.
Most business people will tell you that today more than ever before, time is money.
You need to have that time in your hands to be able to increase your sales efforts.
In order to cover my back? Yes.
There can be different payment terms involved in the operation.
I know that if my Hong Kong agent is involved then I will do the payment to him and then he will do to the factory.
If something goes wrong with the shipment or if the goods are faulty or if there is a short shipment then he is liable to pay me.
Since he is earning a commission from you, it is also his responsibility to take care of payment safety.
I hope that was helpful.
Best to you, Manoj Shivnani
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