It is worth to make the deal like this?
Post 1 of 18
My friend has begun to run her own business these three months.
(if you are interested in her story, you can refer to the old post:
http://resources.alibaba.com/topic/228159/Don_t_count_one_s_chickens_before_they_are_hatched_factory_expect_much_and_get_less.htm)
She worked hard to contact the old and new buyers.
She is so eager to get orders. She even paid the sample cost and freight to send the samples free to please her potential buyer.
Because her buyer said, if you send me the samples free, you will give me the chance to consider the cooperation. If you want me to pay the fee, pls give it up.(it is really unfair). But she sent and gain nothing from this buyer.
Two days ago she talked to me about another new case.
Her buyer wanted to place the container order of lady shoes with her, but the buyer don't want to pay the deposit before production.
That means, my friend has to use her own money to pay the factory deposit to start the production.
Then the buyer will pay her the full payment before shipment.
She is too keen to get orders, it seems she is likely to accept this requirement.
Because the buyer told her, if she doesn't agree, he will not place the order. He will turn to other companies. I have to add that, the buyer don't want to work based on L/C (letter of credit).
Maybe the buyer is also doubt about her company's capacity.
Maybe the buyer is not so sincere.
It is hard to guess. That can be many reasons.
If I am in her shoes, I never accept the orders like that no matter what reasons.
If I pay the factory deposit and what should I do if the buyer cancel the order for some reasons after the goods are ready ? I dare not to take this risk.
I understand it is a big risk for the buyers to pay the deposit before production if the seller is new to them.
But paying deposit before production has already become the international practice. This is the way we (Chinese) work.
I know most of the suppliers don't accept this term, but I am curious to know what do the foreign buyers think about it?
(if you are interested in her story, you can refer to the old post:
http://resources.alibaba.com/topic/228159/Don_t_count_one_s_chickens_before_they_are_hatched_factory_expect_much_and_get_less.htm)
She worked hard to contact the old and new buyers.
She is so eager to get orders. She even paid the sample cost and freight to send the samples free to please her potential buyer.
Because her buyer said, if you send me the samples free, you will give me the chance to consider the cooperation. If you want me to pay the fee, pls give it up.(it is really unfair). But she sent and gain nothing from this buyer.
Two days ago she talked to me about another new case.
Her buyer wanted to place the container order of lady shoes with her, but the buyer don't want to pay the deposit before production.
That means, my friend has to use her own money to pay the factory deposit to start the production.
Then the buyer will pay her the full payment before shipment.
She is too keen to get orders, it seems she is likely to accept this requirement.
Because the buyer told her, if she doesn't agree, he will not place the order. He will turn to other companies. I have to add that, the buyer don't want to work based on L/C (letter of credit).
Maybe the buyer is also doubt about her company's capacity.
Maybe the buyer is not so sincere.
It is hard to guess. That can be many reasons.
If I am in her shoes, I never accept the orders like that no matter what reasons.
If I pay the factory deposit and what should I do if the buyer cancel the order for some reasons after the goods are ready ? I dare not to take this risk.
I understand it is a big risk for the buyers to pay the deposit before production if the seller is new to them.
But paying deposit before production has already become the international practice. This is the way we (Chinese) work.
I know most of the suppliers don't accept this term, but I am curious to know what do the foreign buyers think about it?
26 Feb 2008 01:50
Post 2 of 18
Jas ... no other supplier would be silly enough to produce such big quantity of shoes without a deposit or LC ... therefore the buyer was not honest when he told your friend he would do the deal through another factory. This dishonest buyer's motive is likely to find fault with the finished shoes on some pretext or other leaving your friend no choice but to sell them to him at half agreed price.
![[em1]](http://img.alibaba.com/images/eng/style/icon/emoticons_smile.gif){kind=icon}
26 Feb 2008 02:50
Post 3 of 18
On a daily basis we see buyers falling for tricks that scam sellers use t get money for nothing.
This is a two way street and sometimes buyers are guilty of the same thing.
Just as we can all say that the buyer who gets ripped off trying to buy brand name products in China for a fraction of the price back home, we can also say that a supplier who makes or sends an order without any sort of payment is dreaming!!
There are established practices in this business and they are established as they are fair and they work to protect both parties. They are not perfect but they are the best that we have. As soon as buyers or sellers step off the marked pathway then they are on their own and in danger.
Don't led yourself be led off the safety of the marked pathway - stick with standard practices and safe practices. That means stick with commonsense!
What the buyer in this case is suggesting is not commonsense, does not sound safe, and is certainly not standard. I would definitely give it a miss.
This is a two way street and sometimes buyers are guilty of the same thing.
Just as we can all say that the buyer who gets ripped off trying to buy brand name products in China for a fraction of the price back home, we can also say that a supplier who makes or sends an order without any sort of payment is dreaming!!
There are established practices in this business and they are established as they are fair and they work to protect both parties. They are not perfect but they are the best that we have. As soon as buyers or sellers step off the marked pathway then they are on their own and in danger.
Don't led yourself be led off the safety of the marked pathway - stick with standard practices and safe practices. That means stick with commonsense!
What the buyer in this case is suggesting is not commonsense, does not sound safe, and is certainly not standard. I would definitely give it a miss.
26 Feb 2008 06:41
Post 4 of 18
Replying to [hellojasmine]:Jasmine, I have to agree with Aussie on this one. I have had people try to do deals like this with me and I tell them to find someone else. I even know of a few people that got burned doing this. What they do is get you to import an item that is either not available or hard to get here on credit. When you present an invoice that they signed agreeing to the price, they say that you are crazy that they can get it here much cheaper ( which is absolute B.S.). This is why I never do deals like this, it just isn´t worth it.
27 Feb 2008 11:38
Post 5 of 18
Replying to [hellojasmine]hello jasmin,my name is mark,myself and my business collegue are due in foshan on 3rd march to source some suppliers,and i have been trying to find an interpretor,to help with sourcing products and organising etc,can you or anyone help???please email me on h411mrc@yahoo.co.uk...thank you very much....ps all the comments and reviews on this forum has helped so much in the preparation for my trip to china this sunday..thank you all...mark![[em3]](http://img.alibaba.com/images/eng/style/icon/emoticons_grin.gif)
28 Feb 2008 00:19
Post 6 of 18
Replying to [hellojasmine]: I have to agree fully with the others. This deal seems too risky. An important question to ask is why the buyer doesn't want to use a l/c AND then refuse to pay an upfront deposit as well.
Surely an eager and sincere buyer will do it's best to come up with a solution that benefit both parties. I say leave this deal for some other sucker!
With regard to the free samples, surely your friend's product has a resale value so at minimum a buyer must pay for the shipping.
Surely an eager and sincere buyer will do it's best to come up with a solution that benefit both parties. I say leave this deal for some other sucker!
With regard to the free samples, surely your friend's product has a resale value so at minimum a buyer must pay for the shipping.
28 Feb 2008 01:30
Post 7 of 18
Replying to [hellojasmine]:most of the buyer are scammer for her, I think I know how she get the buyer, they must from free B2B website, I had such kind of experience about 5 years ago. it is not mean that order would come when eager, I have the some situation like her at present.
28 Feb 2008 05:04
Post 8 of 18
did the buyer say why he is not paying the deposit?
28 Feb 2008 05:15
Post 9 of 18
Replying to [hellojasmine]:
No up front deposit ,refusal to use LC etc, from this so called buyer ? To me equals a completely one sided risk .The risk all being landed on your friend .She stands to lose far too much if she enters in to this "deal".
The best action for her is , say no and walk away from the risk ,before it goes any further . As the whole thing is too far removed from conventional business practice.
No up front deposit ,refusal to use LC etc, from this so called buyer ? To me equals a completely one sided risk .The risk all being landed on your friend .She stands to lose far too much if she enters in to this "deal".
The best action for her is , say no and walk away from the risk ,before it goes any further . As the whole thing is too far removed from conventional business practice.
28 Feb 2008 11:07
Post 10 of 18
Replying to [hellojasmine]:Hello Jas,
I would just say in short the buyer is just trying to trick you for something.
ITs quite simple a honest and serious buyer would not have any problem to confirm their business with LC , cause thats the most safest way, and if they are not doing so then there is something wrong.
So if i was in your position i would never give deposit to the factory.
Cause its really very risky.
I would just say in short the buyer is just trying to trick you for something.
ITs quite simple a honest and serious buyer would not have any problem to confirm their business with LC , cause thats the most safest way, and if they are not doing so then there is something wrong.
So if i was in your position i would never give deposit to the factory.
Cause its really very risky.
28 Feb 2008 17:08
Post 11 of 18
Replying to [hellojasmine]: We will never send free samples to customer,if the customer is interested in our products,they will pay for the samples
28 Feb 2008 17:56