by Tekle Sebhatu
Question:
Doing business with different companies in China, how is it possible to identify if the person is a manufacturer or a trading company? I believe that basically manufacturers must have better prices than trading companies.
Answer:
In addition to searching the Internet, which I suspect you already have done to find out whether or not the company has a legitimate website, you should also conduct thorough research including registration with trade agencies and industry associations.
As to the second part of your question, in some instances you might be able to get a better price from a manufacturer than from a trading company, but not always. Manufacturers also give good prices and terms to trading companies to remain competitive. Because most trading companies have good buying power they might also be able to negotiate a better price that they can offer buyers.
Re: Do manufacturers have better price than trading companies?
by mbayani on 27 Jan 2007 03:51
Replying to [Resources]: I think buying from traders sometime is not wise. because in technical items they don't enough knowledge.
Re: Do manufacturers have better price than trading companies?
by Suzi on 04 Mar 2007 23:08
Replying to [Resources]: What are the further benefits of going through a trading company instead of directly through a manufacturer? Do trading companies assist with a variety of choices in terms of suppliers and do they assist with most cost effective collection of goods so that one container containing all can be sent?
Re: Do manufacturers have better price than trading companies?
by kalin333 on 04 Dec 2007 14:37
the mediator in the forum did not answer your question compleatly .
in many cases from my own experiance ... the trading companies have better prices than the factories .
1. the trading companies have better and more flexible pricing policies ( why ?) because in most of the cases the boss of the trading company nagotiate the sourcing price from the factory boss !
and when international trade is done over the internet like with Alibaba ... the international buyer nagotiates only with the sales manager of the factory ... who has little power or knowldge over the
real (best) price which can be sourced from the factory .
the problem is that many sales mangers from the factories are rotating ( changing ) jobs in constant hunger and desire for higher pay ... in that case the boss of the factory does not want them to know the inside accounting of the factory and the real ( best ) price for a certain product .
secondly, in the internet sourcing there is great amount of inquiries which are from competitors ( just looking to compare there own prices lists with the price list of the competitor ) .... in that case the boss of the factory is afraid of revealing its best price to a possible competitor so theire price list ( the factory price list ) is inflated ....
that is big problem for people who source international suppliers on the internet . it is very hard for them to get a sence of the real product price .
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