Free samples: to charge or not to charge? That is the question!
Post 1 of 107
Many members in our forums have expressed concerns about potential fraud traps. Some members believe that asking potential customers to pay for samples is a good way to prevent fraudulent activity.
However, other members claim that, due to intense competition, free samples are an invaluable way to attract potential customers. What do you think?
Should samples be free or not?
Should samples be free or not?
30 Aug 2007 22:36
Post 2 of 107
I voted that samples should not be free.
I am a buyer but I stand on the side of sellers in this regard as I see so many ‘buyers’ both taking deliberate advantage of sellers, or sometimes just requesting samples that are not really needed just because they are free.
Charging for samples adds accountability in my opinion.
If suppliers are charging for samples then they need to do a better job at ensuring that samples are produced on time and well. Also they need to ensure that they are packaged well to protect against damage during transport.
Charging for samples puts an end to individuals who are sample hunting to make a quick buck.
Charging for samples ensures that genuine buyers respect the costs associated with samples as they are now covering these costs. Samples are required of course but at least the buyer will only order what he or she really needs.
I fully support the practice of sample costs upfront with the money returned upon an order being placed. I think that this creates a win-win for the buyer and the seller and it also helps to strengthen trust between both parties. Trust is what this business is all about.
I am a buyer but I stand on the side of sellers in this regard as I see so many ‘buyers’ both taking deliberate advantage of sellers, or sometimes just requesting samples that are not really needed just because they are free.
Charging for samples adds accountability in my opinion.
If suppliers are charging for samples then they need to do a better job at ensuring that samples are produced on time and well. Also they need to ensure that they are packaged well to protect against damage during transport.
Charging for samples puts an end to individuals who are sample hunting to make a quick buck.
Charging for samples ensures that genuine buyers respect the costs associated with samples as they are now covering these costs. Samples are required of course but at least the buyer will only order what he or she really needs.
I fully support the practice of sample costs upfront with the money returned upon an order being placed. I think that this creates a win-win for the buyer and the seller and it also helps to strengthen trust between both parties. Trust is what this business is all about.
30 Aug 2007 22:56
Post 3 of 107
Replying to [Admin]:
We ask for sample payment and will return to the customer after they place an order.![[em3]](http://img.alibaba.com/images/eng/style/icon/emoticons_grin.gif)
We ask for sample payment and will return to the customer after they place an order.
31 Aug 2007 01:53
Post 4 of 107
It is important to clarify mainly, that for entrepreneurs of other Countries as mine, that are innovative in its research of commercial field and make great businesses, that are almost impossible to buy foreign products without the free samples of suppliers of are of its Countries.
The quality is on the competition in the market. A product to be approved in enterprise societies of great or small companies and in emergent economies, is necessary to offer the customer, merchandises of good quality.
For this it serves the free samples, sent for foreign suppliers.
How it is possible to test the quality of a product that if finds in one another distant Country? To only see photos in web sites, is not the sufficient. She is necessary to know the product to be able to present to the customers of great existing commercial centers in the entire world.
This is the opinion of great entrepreneurs in my Country. The majority of them, does not negotiate before without having samples of the products in its hands. Our economy is increasing, and many international companies negotiate here in the Brazil sending free samples of products that not yet we have in our commerce. This has generated great negotiations.
Men of world-wide vision, whom they know as to obtain a great negotiation as these that I cited, people who had gained its customer with specialized attendance and imported products of excellent quality, obtain to vender very here. Then, the sending of the free samples is indispensable.
I wait to have contribuido with this community. E I wait contacts of people interested in investing in typically Brazilian products. We are a great Country and we have much to offer.
The quality is on the competition in the market. A product to be approved in enterprise societies of great or small companies and in emergent economies, is necessary to offer the customer, merchandises of good quality.
For this it serves the free samples, sent for foreign suppliers.
How it is possible to test the quality of a product that if finds in one another distant Country? To only see photos in web sites, is not the sufficient. She is necessary to know the product to be able to present to the customers of great existing commercial centers in the entire world.
This is the opinion of great entrepreneurs in my Country. The majority of them, does not negotiate before without having samples of the products in its hands. Our economy is increasing, and many international companies negotiate here in the Brazil sending free samples of products that not yet we have in our commerce. This has generated great negotiations.
Men of world-wide vision, whom they know as to obtain a great negotiation as these that I cited, people who had gained its customer with specialized attendance and imported products of excellent quality, obtain to vender very here. Then, the sending of the free samples is indispensable.
I wait to have contribuido with this community. E I wait contacts of people interested in investing in typically Brazilian products. We are a great Country and we have much to offer.
02 Sep 2007 16:45
Post 5 of 107
Replying to [eleni-domingues]: The points that you make are certainly valid, but in the context of China at least, I believe that the day of free samples is almost gone.
In the past free samples were the only way for suppliers to get the interest of foreign buyers. In emerging markets they are still the best and perhaps only way of getting business directed to those markets.
In the case of China however there has been a considerable change in the market and the types of 'customers' that contact factories, and this change has resulted in many factories finding that far more samples are being made with less orders coming in.
From a purely financial perspective I don't think that it makes much sense to keep poring factory money down the drain in free samples if orders are not coming in from those samples.
Of course in some cases the factories themselves are to blame for shipping sub-standard quality or late samples or incorrect samples to customers.
In other cases the customer has legitimate reasons for choosing not to place an order and the cost of samples are a legitimate marketing expense.
In far too many cases however samples are sent for free to individuals that never have any intention of placing an order.
How can the factory know which customers are legitimate and which ones aren't? It is not easy.
So from my perspective as a buyer I am more than happy to pay for samples as it means that I won't order samples unless I am pretty sure that everything is in order. I also expect the sample costs to be returned if an order is placed. In this way I am in fact getting free samples to generate business for myself and the supplier.
In cases whereby I do pay for samples that turn out to be no good or no orders eventuate then I write that cost off just as factories did in the past.
There is obviously no right or wrong answer here - but my from my perspective, market changes are forcing suppliers to look at sample supply differently.
In the past free samples were the only way for suppliers to get the interest of foreign buyers. In emerging markets they are still the best and perhaps only way of getting business directed to those markets.
In the case of China however there has been a considerable change in the market and the types of 'customers' that contact factories, and this change has resulted in many factories finding that far more samples are being made with less orders coming in.
From a purely financial perspective I don't think that it makes much sense to keep poring factory money down the drain in free samples if orders are not coming in from those samples.
Of course in some cases the factories themselves are to blame for shipping sub-standard quality or late samples or incorrect samples to customers.
In other cases the customer has legitimate reasons for choosing not to place an order and the cost of samples are a legitimate marketing expense.
In far too many cases however samples are sent for free to individuals that never have any intention of placing an order.
How can the factory know which customers are legitimate and which ones aren't? It is not easy.
So from my perspective as a buyer I am more than happy to pay for samples as it means that I won't order samples unless I am pretty sure that everything is in order. I also expect the sample costs to be returned if an order is placed. In this way I am in fact getting free samples to generate business for myself and the supplier.
In cases whereby I do pay for samples that turn out to be no good or no orders eventuate then I write that cost off just as factories did in the past.
There is obviously no right or wrong answer here - but my from my perspective, market changes are forcing suppliers to look at sample supply differently.
02 Sep 2007 19:57
Post 6 of 107
Replying to [Admin]:
This topic is too absolute.
For us, we see to the condition. For low cost samples, not to charge, charge freight cost or freight collect. For high cost samples, charge both samples and freight cost, or freight cost collect.
There are many such topic in the column of Sales & Marketing!
Hyk
![[em1]](http://img.alibaba.com/images/eng/style/icon/emoticons_smile.gif)
This topic is too absolute.
For us, we see to the condition. For low cost samples, not to charge, charge freight cost or freight collect. For high cost samples, charge both samples and freight cost, or freight cost collect.
There are many such topic in the column of Sales & Marketing!
Hyk
02 Sep 2007 21:13
Post 7 of 107
Replying to [everconn]:
iT' s not the answer of Yes or Not,
Even though we want to let Yes is YES forever and No is No Forever
truely!
I visisted/attented some forum or alibaba meeting here as spectator with some invited
experted or succesful bizman talking of this topic as well......
On behalf of some light industrial factory,
we would like to say Yes " It is free"
"The free sample is of no commerical value "......
We should specify that the sample is like
some cheap Product like plastic something,
the value should be around 10 usd....
For some cheap item,but popular daily neccesity Items,
the factory can aggressviely send Free sample for
interested company..........sometimes the freigh charges is offered free as well...
It is impossible for a laptop company to give you a free
sample upon your early request......
So please don't complain that The supplier won't give
you a sample......
Another Disccusion is that
Whether the trading company would offer you free Sample....
Firstly, The trading company can get free Sample from Factory or not........
How many samples can the trading company get from the factory......
Gernally Speaking, part of factory would like to do biz cooperation
with trading company while part of them will establish its own trading department for self-promotion and sale......
In this case, You might see the factory who rely on trading company
and inland market would like to supply free sample and
new sample and designed for certain kinda of trading company
within communication, on the other hand, You might
find it hard to get sample free from comprehensive manufacture group
who are willing to give sample directly to oversea......
Ironically some chinese company want to get some sample from them, would ask someone in Hongkong or Twan to help them buy
the sample......
It is a complex but simple thing to understand whether
the factory would like to give free sample or not.....
Sometimes they feel risky to give out new-designed sample
to its competitors....
but anyway, If you comunicate well with the factory,
most of them would like to give you a free sample.....
and You should show your sincerity to offer the freigh charge collect
service to get the sample......
Finally the last statement of not giving free sample...
Becoz the factory or trading company want to see
whehter Buyers can use their bank to transmit the payment
smoothly or not....
They feel they are in a favorable position if
the buyers would pay everything in the first step..
God bless....
iT is very easy to Say true thing
while it is most difficult to say true thing alwayz
Biz is just getting more exciting
Joey Yiwu City China
iT' s not the answer of Yes or Not,
Even though we want to let Yes is YES forever and No is No Forever
truely!
I visisted/attented some forum or alibaba meeting here as spectator with some invited
experted or succesful bizman talking of this topic as well......
On behalf of some light industrial factory,
we would like to say Yes " It is free"
"The free sample is of no commerical value "......
We should specify that the sample is like
some cheap Product like plastic something,
the value should be around 10 usd....
For some cheap item,but popular daily neccesity Items,
the factory can aggressviely send Free sample for
interested company..........sometimes the freigh charges is offered free as well...
It is impossible for a laptop company to give you a free
sample upon your early request......
So please don't complain that The supplier won't give
you a sample......
Another Disccusion is that
Whether the trading company would offer you free Sample....
Firstly, The trading company can get free Sample from Factory or not........
How many samples can the trading company get from the factory......
Gernally Speaking, part of factory would like to do biz cooperation
with trading company while part of them will establish its own trading department for self-promotion and sale......
In this case, You might see the factory who rely on trading company
and inland market would like to supply free sample and
new sample and designed for certain kinda of trading company
within communication, on the other hand, You might
find it hard to get sample free from comprehensive manufacture group
who are willing to give sample directly to oversea......
Ironically some chinese company want to get some sample from them, would ask someone in Hongkong or Twan to help them buy
the sample......
It is a complex but simple thing to understand whether
the factory would like to give free sample or not.....
Sometimes they feel risky to give out new-designed sample
to its competitors....
but anyway, If you comunicate well with the factory,
most of them would like to give you a free sample.....
and You should show your sincerity to offer the freigh charge collect
service to get the sample......
Finally the last statement of not giving free sample...
Becoz the factory or trading company want to see
whehter Buyers can use their bank to transmit the payment
smoothly or not....
They feel they are in a favorable position if
the buyers would pay everything in the first step..
God bless....
iT is very easy to Say true thing
while it is most difficult to say true thing alwayz
Biz is just getting more exciting
Joey Yiwu City China
02 Sep 2007 21:38
Post 8 of 107
Replying to [Admin]:
Hello;
Regarding samples; the suppliers should be aware that importers pay (Custom Dutie+Sales Taxes) on the shipping costs for these samples (even if free) when they arrive the destination countries.
For example, a free sample of a stand fan that costs $7 -shipped by sea-, I pay for it $8 (30% duties X 10% sales tax applied on total of estimated cost+all freight cost). If shipped by air, the amount is $ 27, which is far more expensive than the cost of $7 which I did not pay to the factory!!!
Charging for samples or not charging is not really the issue here!
The real issue is for factories which make the paid samples EVEN MORE EXPENSIVE than their asking selling price!
For example, an item that they would sell for you at $50, the sample for it is , say, $60...why??? I do not deal at all with factories that have such a sample pricing policy, because the 2 following reasons:-
1) They make costs for inspecting their products really expensive anf this high cost is automatically entered into the customs computer database, so when you import at only $50, the customs would still charge you at $60!!
2) I do not understand at all why should factories make more money on samples than on regular sales??? This practise is only in China. The west would give you samples at a REDUCED cost ( for example at $35 for an item that sells at $50), and this is the SENSIBLE thing to do. Factories should offer paid sampl;es AT COST ONLY!!!
Thank you
H. Olama, MSME, P.E.
Cairo, Egypt.
Hello;
Regarding samples; the suppliers should be aware that importers pay (Custom Dutie+Sales Taxes) on the shipping costs for these samples (even if free) when they arrive the destination countries.
For example, a free sample of a stand fan that costs $7 -shipped by sea-, I pay for it $8 (30% duties X 10% sales tax applied on total of estimated cost+all freight cost). If shipped by air, the amount is $ 27, which is far more expensive than the cost of $7 which I did not pay to the factory!!!
Charging for samples or not charging is not really the issue here!
The real issue is for factories which make the paid samples EVEN MORE EXPENSIVE than their asking selling price!
For example, an item that they would sell for you at $50, the sample for it is , say, $60...why??? I do not deal at all with factories that have such a sample pricing policy, because the 2 following reasons:-
1) They make costs for inspecting their products really expensive anf this high cost is automatically entered into the customs computer database, so when you import at only $50, the customs would still charge you at $60!!
2) I do not understand at all why should factories make more money on samples than on regular sales??? This practise is only in China. The west would give you samples at a REDUCED cost ( for example at $35 for an item that sells at $50), and this is the SENSIBLE thing to do. Factories should offer paid sampl;es AT COST ONLY!!!
Thank you
H. Olama, MSME, P.E.
Cairo, Egypt.
03 Sep 2007 01:36
Post 9 of 107
Replying to [Egernia]: I am very glad to see your buyers take consideration on the side of sellers, and I think it's a good way to benefit both.For a seller, when we send the samples, if the customer show their sincere on business, we will do the samples more quickly and keen in cooperating with this company, and will take serious on this company for business, and do better.
03 Sep 2007 02:00
Post 10 of 107
Offerng "Free" samples is a way of attracting business and part of your businesses sales cost. In most product industries the norm is to provide samples to show the quality and discuss technical issues around the product.
The main reason for charging for samples appears to be to stop fraudsters taking advantage of the free sample system. The secondary reason is to build a value into those samples.
So why not charge for the first set of samples and rebate against the first order. After that you have the option of offering further samples "free" to a genuine customer or continuing the practice of rebating against an order.
If a supplier is charging for samples should the supplier expect the customer to insist on a performance "bond" for delivery of the main order against those samples? After all if the final order does not match the samples then that would be considered sharp practice at best and fraud at worst. A case of putting your money where your mouth (product) is.
On the other side of this debate is whether customers should charge suppliers for tender documentation? In industries where detailed product specifications are produced by the customer for a supplier to match and tender for the business there is often a charge for the tender documents. Most often from Government organisations or for government tenders however it allows fraudsters the opportunity to offer such tender documents and charge for them, without much chance of getting caught.
The main reason for charging for samples appears to be to stop fraudsters taking advantage of the free sample system. The secondary reason is to build a value into those samples.
So why not charge for the first set of samples and rebate against the first order. After that you have the option of offering further samples "free" to a genuine customer or continuing the practice of rebating against an order.
If a supplier is charging for samples should the supplier expect the customer to insist on a performance "bond" for delivery of the main order against those samples? After all if the final order does not match the samples then that would be considered sharp practice at best and fraud at worst. A case of putting your money where your mouth (product) is.
On the other side of this debate is whether customers should charge suppliers for tender documentation? In industries where detailed product specifications are produced by the customer for a supplier to match and tender for the business there is often a charge for the tender documents. Most often from Government organisations or for government tenders however it allows fraudsters the opportunity to offer such tender documents and charge for them, without much chance of getting caught.
03 Sep 2007 02:22