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
Replying to [hellojasmine]:
I registered in Alibaba as a buyer, contrast to Jasmine's case. Since my demands are inexpensive items, I requested free samples and paid the freight via collect courier instead of T/T. My policy about deposit is absolutely NO while facing a new supplier. However, I am willing to issue an L/C first if a new deal is conducted. The buyer in Jasmine's case sounds mean and is smelled a rat.
I registered in Alibaba as a buyer, contrast to Jasmine's case. Since my demands are inexpensive items, I requested free samples and paid the freight via collect courier instead of T/T. My policy about deposit is absolutely NO while facing a new supplier. However, I am willing to issue an L/C first if a new deal is conducted. The buyer in Jasmine's case sounds mean and is smelled a rat.
28 Feb 2008 19:37
Post 3 of 18
Replying to [hellojasmine]:
Most of the time when I post a buying lead, I get a lot of respond sometimes over a hundred. Some seller send me the sample free including freight some I provide our fedex account number. At the end of the day I get over 20 samples free. If this is the case those who wanted to charge for the sample would not even be in my list as I have too many to choose from. Even when I decide whom shall I give the fedex account I’ll look on how the seller is dealing are they professional enough. Sometime I spend a lot of money to send the collected samples to do a lab test. Out of 20 sometime there are only one sample is useable. So I think it is quite stupid to pay for the sample ( some of you may not agree but in actual the lab test fee and freight cost are many times more expensive then the sample ) So if I begin to pay for all freight cost and samples my cost will be very high and it just don’t make sense.
In your friend’s case I think the buyer is serious but do not have the confidence with the seller. What happen if they pay the deposit or issue L/C and the seller produce a container of scrap, they have no choice but to pay for it. You can’t blame them as there are too many suppliers in China but only a very small percentage can produce good product or correct thing, in other country you don’t see there are so many third party QC companies. So many members said that a third party QC company is a must when buying in China why??? I think every body knew why. Buyer have to pay for these extra cost, so what is the seller’s QC doing, are they can’t be trusted or simply don’t know anything or simply the seller will cut corners if they are left uncheck? These situations just don’t exist in most of the other countries.
Of course there a good suppliers too, it is just that the buyer don’t know who they are and after getting a lot of bad experience and hearing so many bad incidents they are just be cautious and take extra precaution. For a solution you can ask your friend to propose to the buyer to engage a QC company of their choice maybe they are more comfortable with a foreign own QC company and put in a condition that a QC company’s approval report is needed to fulfill the L/C. Don’t start anything if there is no L/C received, I wish her good luck
Most of the time when I post a buying lead, I get a lot of respond sometimes over a hundred. Some seller send me the sample free including freight some I provide our fedex account number. At the end of the day I get over 20 samples free. If this is the case those who wanted to charge for the sample would not even be in my list as I have too many to choose from. Even when I decide whom shall I give the fedex account I’ll look on how the seller is dealing are they professional enough. Sometime I spend a lot of money to send the collected samples to do a lab test. Out of 20 sometime there are only one sample is useable. So I think it is quite stupid to pay for the sample ( some of you may not agree but in actual the lab test fee and freight cost are many times more expensive then the sample ) So if I begin to pay for all freight cost and samples my cost will be very high and it just don’t make sense.
In your friend’s case I think the buyer is serious but do not have the confidence with the seller. What happen if they pay the deposit or issue L/C and the seller produce a container of scrap, they have no choice but to pay for it. You can’t blame them as there are too many suppliers in China but only a very small percentage can produce good product or correct thing, in other country you don’t see there are so many third party QC companies. So many members said that a third party QC company is a must when buying in China why??? I think every body knew why. Buyer have to pay for these extra cost, so what is the seller’s QC doing, are they can’t be trusted or simply don’t know anything or simply the seller will cut corners if they are left uncheck? These situations just don’t exist in most of the other countries.
Of course there a good suppliers too, it is just that the buyer don’t know who they are and after getting a lot of bad experience and hearing so many bad incidents they are just be cautious and take extra precaution. For a solution you can ask your friend to propose to the buyer to engage a QC company of their choice maybe they are more comfortable with a foreign own QC company and put in a condition that a QC company’s approval report is needed to fulfill the L/C. Don’t start anything if there is no L/C received, I wish her good luck
28 Feb 2008 21:34
Post 4 of 18
Replying to [hellojasmine]: ur friend is soooooooo kind and sincere, but it's business not only making friends.Bless for her!![[em12]](http://img.alibaba.com/images/eng/style/icon/emoticons_surprised.gif)
29 Feb 2008 23:01
Post 5 of 18
Replying to [hellojasmine]:
Hello Jasmine,
Better let your friend give up the order. Her buyer seems not so professional and unsincere.
Hello Jasmine,
Better let your friend give up the order. Her buyer seems not so professional and unsincere.
02 Mar 2008 19:05
Post 6 of 18
Replying to [hellojasmine]:
If I were the seller, I would ignore such order.
If I were the seller, I would ignore such order.
03 Mar 2008 13:40
Post 7 of 18
Replying to [hellojasmine]:
No deposit? No LC? I would not like to do business with these kind of customer even if they are genuine. I prefer to play safe than lost everything. Ask your friend think twice before going into it
No deposit? No LC? I would not like to do business with these kind of customer even if they are genuine. I prefer to play safe than lost everything. Ask your friend think twice before going into it
05 Mar 2008 19:57
Post 8 of 18
Replying to [hellojasmine]:
I won't accept the buyer's request.![[em7]](http://img.alibaba.com/images/eng/style/icon/emoticons_shy.gif)
I won't accept the buyer's request.
05 Mar 2008 22:08