Last week I paid several factory visitations to some Shenzhen-based companies in China upon request of some foreign buyers. All the three companies are Gold member or Trust pass members in Shenzhen, who all claimed that they were real manufacturers of electronics in China. I’m sure most of the foreign businessmen will be astonished at the result of my visitation in Shenzhen; here is the basic information from my visitation report:
Company One:
Decline my visitation on the pretext of goods shortage, but they promised to receive us before our departure to Shenzhen.

Company Two:
Received us at an office in a Hotel, there are 3 salespersons working in the office. We cannot even find a Logo on their company in the office and on the door. They are checked out to be a small offshore trading company in China.

Company Three:
This is the best one among the three. They are a registered small trading company in China, however, they do not have their own right to export ( I mean they do not have the Certificate of Import & Export issued by local government authorities ), they normally export their goods via Freight Forwarders, for which the buyer may bear some risks. They registered only on 2005.08.26; however, they claimed themselves they registered in 1999 online. They do not have any factories at all. They cannot show me any quality control measures and after sale services in written forms; they cannot even show me a formal sales contract!!

My suggestion: You’d better deal with larger trading companies or manufacturers directly for sake of better quality control in China. Lot of trading companies disguise to be a real manufacturer in China, so a factory visitation or inspection is very necessary for a large order in China! A factory visitation can tell you everything about the supplier and it’s one of the best way to verify your Chinese supplier!

What can a factory visitation performed by a local bring you ?
As we all know, there are many false things on the web, which perplex us often when we are going to make a decision. The case is also true with buyers who are going to buy from oversea suppliers. Here I bet a factory visitation (better by a local person) is a second-to-none solution.
1.Genuine or False?
The local person can go and check the company (the potential seller) and all its factory registration information to see if it’s a genuine and serious enterprise. This is the basic thing that any buyer has to do before any sincere cooperation!
2.Production Competence (Throughput)?
The visitor can inquire about the factory’s producing ability (also known as throughput) with the director of Production Department. How much can they produce in a month or a quarter? By learning their production competence, the buyer can avoid the risk of a delayed delivery to some extent.
3.Quality Control?
The visitor can try to get to know the factory’s quality control system with the help from the director of Quality Control Department. He can also get to know more by inspecting their assembly lines or work shops. Good quality is always one of the crucial things that buyers are always pursuing.
4.After-sale Service?
After-sale service is also important for buyers. Here the visitor or inspector can make sure if the factory can offer good and effective after-sale services and also confirm if they can include after-sale services as one clause in the contract? After-sale services can keep you free from some troubles.
5.Export License?
Some suppliers do not really have export license. Here the visitor can check the supplier’s registration information with the local customs to see if it can really export directly to the buyer’s country. This is also one of the factors that can free you from being scammed. Other qualifications of the supplier can also be checked out by a local expert in this field in China.

Thank you for your attention, good luck, everybody!

Replying to [Business in China]: You seem like a very knowledgeable Chinese Businessman, if you have the ability to check out Chinese Companies, I certainly have several million customers that would be buyers.

On the other hand I can check out the U.S. side. Any interest?

Replying to [Business in China]: Great points Yulin. As you have done for other companies. I always have a respected Chinese businessman check out all suppliers based on those points. If they are a real manufacturer he then orders a factory audit on my behalf. As well upon placing orders we pay for pre-shipment inspections. Once trust is established inspections become less frequent but they could be callled upon to submit to further audits at any time. To many times negotiations are done only via internet and then buyer wonders why they were scammed. Its a small price to pay for pre-shipment inspection at the very least which could save the buyer thousands in either bad products or products that can not legally pass thru customs and wind up confiscated.

Best regards,
Ranger

Replying to [Fat American]:

I'm looking forward to working together with you in China ! Welcome to China!

Replying to [Business in China]
You did a good job, Justin! If all the buyers first get help from people like you before they are probably on the way to suffer a loss, the number of frauds and trade disputes can be reduced remarkablely. Thank you.

Replying to [Chinaelectronics]:

Our mission is to help small and mid-sized foreign buyers to avoid being scammed in China. We can offer other business services as well. Welcome to China!

Replying to [Chinaelectronics]:

I totally agree with you. Pre-shipment inspection is very important for Asia suppliers. Good luck to everybody!

Replying to [Business in China]:

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i want to import some INDUSTRIAL PRODUCTS FROM CHINA I HAVE BEEN QUOTED BY MANY SUPPLIERS , AND THE PRICES HAS VARIATION UPTO 1 DOLLAR AS TOTAL COST OF THIS PRODUCT STARTS FROM 1.52 TO 2.55 DOLLARS FINALLY I CAME TO TWO COMPANIES WHO HAVE QUOTED ME EXACTLY SAME PRICE

 

Company

Country

Registered Address

Year Established

Legal Representative

Legal Form

Registration NO

Issuing Authority

Date of Issue

Date of Expiry

Registered Capital:

Jining Qinfeng Machinery Hardware Co., Ltd.

China

No.16, Xianying Road (8/F, Committee of Foreign Economic Relations and Trade), Jining , Shandong, China Zip: 272000

2000

Mr. Liming Wang

Limited liability company

370800228005646

Jining City Administration for Industry and Commerce

2000-09-18

2010-09-17

RMB 5,100,000

Company Name:

Street Address:

City:

Province/State:

Country/Region:

Zip:

Telephone:

Mobile Phone:

Fax:

Website:

Jining Qinfeng Machinery Hardware Co., Ltd.
No. 47 Jinyu Road
Jining
Shandong
China
272000
86-537-3281595
13705473076
86-537-3281597
www.qfmh.com http://qfmh.en.alibaba.com

 

Has anyone out there done business with HK KD Electronics Co., LTD??  In particular they are selling mini laptops at $80. each which seems incredibily low. 

Please disclose the name of companies you visited and the diff parameters you checked !! reveal the information so others get benefited.