Everyone,
Do not trust any company from Guilin China, they have developed a great SCAM, I can tell you first hand that we were scammed out of $17,000 not including our airfare and hotel. Open your eyes and ask yourself all the “business like questions” and you yourself will acknowledge that this is a complete scam. Don’t trust them and avoid trading additional information about yourself or company to any company in China. These are the tactics that they employ…….
1. They pretend they are interested in your product
2. They ask for best price / quotation
3. They ask for samples
4. They respond with favorable outlook on your product and price
5. They ask for best price for large order
6. They pretend to be negotiating and informing their boss
7. They extend a buy offer and submit a contract for your review
8. Once you accept the terms they ask for you to come to China to “Sign the Contract”
9. You get excited about the large order and it seems that you have nothing to loose…..
10. They arrange for hotel, pick you up from airport and escort you to hotel
11. You meet the “Boss” and a friendly Women who translates for the Boss (This is to confuse you… The Boss speaks English) he asks a series of questions a. How long in business – (This is used to make you feel he is checking out your credentials) b. What’s your “Net Worth” – (This is used to determine how much they can swindle from you) c. Can we visit your factory – (This is used to make you feel that they are committing to a long term relationship) d. Etc….
12. Your asked to return the next day while they prepare the final contract based on further price negotiations (They do this to fully change your mindset and believe they are committed in purchasing from you)
13. They arrange breakfast, lunch and dinner – (Every place they take you, they get a kickback for your expense)
14. You meet the “Boss” again and he has the final contract for you to sign, he decides to leave the terms at the most favorable price and condition for YOU! (Your excited!!!!)
15. Once you agree with the terms he tells you that his “Finance Manager” must approve but he’s not in the office attending other meetings
16. Your asked to purchase a gift for the “Finance Manager” to insure a favorable outcome and the “Boss” tells you he will work very hard to market your product to the “Finance Manager”
17. You agree to purchase a gift and immediately escorted to an art gallery to purchase a very expensive art – (Keep in mind, you’re not thinking of the price because you just signed a very large contract)
18. Your extremely happy and now continue dinning and shopping – (All controlled by the individuals that are escorting you around… remember they continue to get kickbacks from all locations)
19. Next day you go to meet the “Finance Manager” to complete the contract and your told that the “Finance Manager” had an emergency and is very sorry he cannot meet you.
20. The “Boss” tells you that the “Finance Manager” will come to your factory and you can give him the gift once he travel to your factory.
21. You leave with a contract in your hand, expenses and a high priced gift, never to hear from anyone again. Above is an example of what happened to me, the difference was that I caught onto their SCAM the day prior to me leaving, without going into much more details, I could have avoided this entire SCAM by just doing a little bit of investigation. You see, these SCAMMERS target new and small to medium companies, companies that are eager to succeed and are looking for that quick break. It’s sad that there are bad individuals out to take advantage of people. Hopefully this information will help you be SMARTER!!!!!
Sincerely,
Eric Reid
Sorry to see this happen to you. This is a typical scam in China for quite many years. Many people still fall for it. When you are asked to bid, check their business license, verify that they do have a need of your products(service).
Regards,
Tony
HI Eric,
I happened to me. Now , I dont believed if someone tell me to visit their place and sign a contract face to face. If buyers are really interested they can visit my country and see the factory and place an order then pay either by T/T or LC . Does it.
I really feel sorry that you meet scammers in China, but don't lose faith in all the companies from China.Hope you can be more carefull next time. Best requards for you.
In China, tradition dictates that the recipient not appear greedy. Therefore, he or she will often decline a gift two or three times before accepting. If you’re the giver, offer again until it is accepted after the third time. At the same time, especially in business, your gift may be absolutely refused, so don’t press beyond several refusals.
Business Gifts
1. In business, show sensitivity to people's status. Give the same type of gift to people at the same level. Or present a gift to a company or organization instead of one person. Giving a gift only to an individual is not acceptable unless it is being given in private as a gesture of friendship.
2. Be sure the value of the gift is not extravagant.
3. Unless it's a symbolic event, don't photograph the event of giving a gift.
4. If negotiations are involved, gifts should be presented once they are finished.