what will matter the most ,when the buyer is choosing a supplier?
Post 1 of 9
I have got to tell you guys that one of my clients visited our factory last month.He showed a bit interest in our cutting machine.but he did not place an order with us at last .I thought the most killing factor is that we do not have an authority to export.but we do have an exporting agent,who has been exporting products for us for so many years.Then I thought it may have something to do with it .If it is still the situation the next time ,how can I explain or how can I do?
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16 Oct 2007 20:24
Post 2 of 9
Replying to [little friend]:
Dear my friend,
I am Lindy, This is really the question we should think about it!![[em24]](http://img.alibaba.com/images/eng/style/icon/emoticons_thinking.gif)
Dear my friend,
I am Lindy, This is really the question we should think about it!
19 Oct 2007 00:57
Post 3 of 9
Replying to [little friend]:
Hello there,
Mostly its not the matter of the facility you have or not have, the problem is if he already got a better offer then yours, its obvious he just wants to recheck the prices he got.
Me as a buyer would look for someone who is flexible, who doesn´t have fixed minimum quantity, and the prices are strongly based on quantity, I would prefer someone who is flexible with the quantity, and can deliver to me without any issues. Further the supplier should take some responsiblity in the damaged goods or defect products.
So all in all, thats the base, but there is also a chemistry, sometimes, you can have the best product and the best prices, yet still if the chemistry doesnt match, the buyer will still go somewhere else. The reason for that can be also communication problems, if your english is not well, then its suggested you get a translator to improve that. In any business communication should be smooth.
Now to the final step, the payment terms, this is quiet critical, you can have established everything but if you don´t get this right, you lose again. This requires a soft approach, most buyers prefer, like me, prefer payment after inspection, or against Bill of Lading. But if you take full responsibility then there should be no problem as well.
Anyhow hope that helps you out. Maybe you see what could have gone wrong between you and your buyer, after going through this.
Hello there,
Mostly its not the matter of the facility you have or not have, the problem is if he already got a better offer then yours, its obvious he just wants to recheck the prices he got.
Me as a buyer would look for someone who is flexible, who doesn´t have fixed minimum quantity, and the prices are strongly based on quantity, I would prefer someone who is flexible with the quantity, and can deliver to me without any issues. Further the supplier should take some responsiblity in the damaged goods or defect products.
So all in all, thats the base, but there is also a chemistry, sometimes, you can have the best product and the best prices, yet still if the chemistry doesnt match, the buyer will still go somewhere else. The reason for that can be also communication problems, if your english is not well, then its suggested you get a translator to improve that. In any business communication should be smooth.
Now to the final step, the payment terms, this is quiet critical, you can have established everything but if you don´t get this right, you lose again. This requires a soft approach, most buyers prefer, like me, prefer payment after inspection, or against Bill of Lading. But if you take full responsibility then there should be no problem as well.
Anyhow hope that helps you out. Maybe you see what could have gone wrong between you and your buyer, after going through this.
20 Oct 2007 00:36
Post 4 of 9
Replying to [little friend]:
Hello there once again,
I totally forgot to mention this. I think the major reason your buyer dropped you is, cause you only give exwarehouse prices. And that also indicates to most buyers that you are not good with loading containers, basicially maximizing the container loads to drop shipping cost.
Me as a buyer i would immidiatley go with someone who is offering me the same product who is giving me the CNF rates, since I don´t have to calculate for myself, and don´t have to take care of the Container loading.
If you give CNF rates, and know exaclty what quantity you can fit in a container, it doesn´t matter if you have an forwarding agent. Majority of the factories work with forwarding agents, the only difference is they know their prices well Exwarehous, FOB, CNF or CIF, that saves the customer time and headaches of finding a agent themselfs.
Hello there once again,
I totally forgot to mention this. I think the major reason your buyer dropped you is, cause you only give exwarehouse prices. And that also indicates to most buyers that you are not good with loading containers, basicially maximizing the container loads to drop shipping cost.
Me as a buyer i would immidiatley go with someone who is offering me the same product who is giving me the CNF rates, since I don´t have to calculate for myself, and don´t have to take care of the Container loading.
If you give CNF rates, and know exaclty what quantity you can fit in a container, it doesn´t matter if you have an forwarding agent. Majority of the factories work with forwarding agents, the only difference is they know their prices well Exwarehous, FOB, CNF or CIF, that saves the customer time and headaches of finding a agent themselfs.
20 Oct 2007 00:51
![[em19]](http://img.alibaba.com/images/eng/style/icon/emoticons_great.gif){kind=icon}
Post 6 of 9
Replying to [little friend]:
Hello there,
Go through this webpage http://resources.alibaba.com/article/107/From_Seller_to_Buyer_a_flow_diagram_of_Incoterms_2000.htm
Here you will find a visual description of all shipping terms that there are, but the most common used are EXWAREHOUSE, FOB, CNF, or CIF.
Once you know your terminology, it will be easier for you to understand your customer demand.
PEACE OUT
Hello there,
Go through this webpage http://resources.alibaba.com/article/107/From_Seller_to_Buyer_a_flow_diagram_of_Incoterms_2000.htm
Here you will find a visual description of all shipping terms that there are, but the most common used are EXWAREHOUSE, FOB, CNF, or CIF.
Once you know your terminology, it will be easier for you to understand your customer demand.
PEACE OUT
23 Oct 2007 17:37
Post 7 of 9
Replying to [little friend]:
Your company is selling cutting machines so I assume that your clients that have visited your company must be a technical person too. I am not sure if your client is looking for a one time deal business or a long term repeatable orders. As a purchasing engineer these are the few things I looked for during the visit.
1) Is the factory proper set up in a professional way?
2) What is the ratio between direct and indirect staff?
3) What is the generation in dollar and cent per employee per month?
4) Does the company have a proper flow?
5) What is the average working experience per employee?
6) Do they have the right machine to produce?
7) Do they have the proper control plan to meet constant repeatability of quality?
8) Do they have a proper quality procedure?
9) Do they have the proper QC equipment?
10) Are the tools calibrated?
11) How do they store customer’s technical documents?
12) How they store their raw materials, cnc program, tools, jig and fixture etc?
13) Ask as many technical questions to see what is the level of knowledge?
14) Ask as many international standard and test question to judge the confidence level
15) Level of house keeping
16) The sincerity and professionalism during the entire dealing
17) Pricing and flexibility
Normally if the clients fly in to China from another country they will not visit only one supplier, they will visit a few in one trip and there are serious buyer if not they will not do so. Most probably they feel that some other competitors are better than your company or they totally do not have confidence with your company.
Your company is selling cutting machines so I assume that your clients that have visited your company must be a technical person too. I am not sure if your client is looking for a one time deal business or a long term repeatable orders. As a purchasing engineer these are the few things I looked for during the visit.
1) Is the factory proper set up in a professional way?
2) What is the ratio between direct and indirect staff?
3) What is the generation in dollar and cent per employee per month?
4) Does the company have a proper flow?
5) What is the average working experience per employee?
6) Do they have the right machine to produce?
7) Do they have the proper control plan to meet constant repeatability of quality?
8) Do they have a proper quality procedure?
9) Do they have the proper QC equipment?
10) Are the tools calibrated?
11) How do they store customer’s technical documents?
12) How they store their raw materials, cnc program, tools, jig and fixture etc?
13) Ask as many technical questions to see what is the level of knowledge?
14) Ask as many international standard and test question to judge the confidence level
15) Level of house keeping
16) The sincerity and professionalism during the entire dealing
17) Pricing and flexibility
Normally if the clients fly in to China from another country they will not visit only one supplier, they will visit a few in one trip and there are serious buyer if not they will not do so. Most probably they feel that some other competitors are better than your company or they totally do not have confidence with your company.
23 Oct 2007 22:01
Post 8 of 9
Replying to [little friend]:
Do not feel too worry about that, try your best to let your client understand you, and you can kee pin touch with him, or send your new catalogue to him in a certain period, in my opinion that's enough.
Do not feel too worry about that, try your best to let your client understand you, and you can kee pin touch with him, or send your new catalogue to him in a certain period, in my opinion that's enough.
25 Oct 2007 03:13
Post 9 of 9
Replying to [little friend]:Dear my friends! I have now got the reason why my client did not place an order with us .you know why ,I gave them a call few days ago.I said to him that we can still be friends ,though we did not conclude a deal at first .He said :"sure "
Then we talked for about a few minutes.I tried to ask him the reason why he did not give us an order .He sincerely told me that it is because the price we gave is on the very high side.we did not make any concessions till the other supplier gave him a very reasonable price .then,he placed the order with them.
Now I think it may not have someting to do with the problem of exporting authority. but it may be the next time ,as different buyers have different requirements.Anyway ,I will stay calm , patient, and optimistic!
Thanks for your all good suggestions !
Then we talked for about a few minutes.I tried to ask him the reason why he did not give us an order .He sincerely told me that it is because the price we gave is on the very high side.we did not make any concessions till the other supplier gave him a very reasonable price .then,he placed the order with them.
Now I think it may not have someting to do with the problem of exporting authority. but it may be the next time ,as different buyers have different requirements.Anyway ,I will stay calm , patient, and optimistic!
Thanks for your all good suggestions !
27 Oct 2007 23:59
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