My buyer ordered a product with a Chinese supplier.

The person in that company(A) told the buyer that the order would be produced in their head company(B).

(The two companies have different name, but the person said, the relationship between these two companies was son and mother. )

The sale contract was made between the head company and the buyer.

When my buyer and I went to check the goods in B, I felt the two companies are cooperated relationship. But I wasnt garrulous.

The buyer contacted head company(B) mainly for technical problems, as the order was produced in B.

We have shipped the goods recently.

Today, we had a chat on msn.

When the buyer told me something, my previous guess verified finally and we agreed that A is a trading company instead of the manufactory.

Anyway, I told my buyer, so long as you are happy with their price, it matter if A is a trading company although now you know the real manufactory? What do you think?

I even asked the buyer with this question, who you would contact for next order? A or B?

I prefer to work with the factory directly, of course. It never occurred to me that A could be a trading company. When I selected the companies to contact, I did not contact trading companies. There was nothing to suggest A was a trader. The buyer answered.

In this case, I cant say who is right or wrong. I also cant express my opinion.Different party has different stand.

It is nothing about correct or wrong. It is business and profits.

As a buyer, it is correct that he try to cut down his cost, especially when he know the real manufactory.

As a trading company, he gain what he pay. Although he is trading instead of producing. This business was happened due to the trading companys introduction.

Tonight, I got the email from the buyer, which I agreed a lot and admired.

I always think my buyers minds tend to be Chinese way.

In fact, it is more than ethical, but as he said the buyers also need a Chinese trader for further insurance, who would share your profits, but also shared your risk. He wrote as below:

"Hi Jasmine,
You opened my eyes - it was all in front of my eyes. I have been really blind.

Anyway, for these XXX products it (having a trader arrangement in between) has worked reasonably well. There was added value from A. And got a good price.

Dealing directly with the B was my preference. It was a large order and I needed to have direct contact with the factory on technical issues. I got direct contact even if A made the deal.

Secondly, I think long term personal relationships are important in China trade. I see no reason to try to cut A out (and it is not nice, ethical). Pay a small/reasonable premium and get the job done.

Third, I think that having a local representative in China is important. A western person needs that. It is a kind of insurance payment (as I said): when there are problems one needs a Chinese person.

As you said, if the price I get from A is good, having "trader Sky" in between is no problem. We will see when we see the price for the next order. "

If you are my buyer, how would you like to do for your next order? 

Do you think this is fair to the trader?

• He is the one who introduce the factory to your buyer.  
• He is the one who bring customers to this factory.
• He is the one who share the risks with you & your buyer.

In the future, I would suggest you to talk to the trader first instead of talk to your buyer. As your buyer is already happy with everything, then why create some trouble for him to think about?

At the time when you realize that person is a trader, I think you should be happy about it. That means you found one more person who will go find a lot more factories for different products for you and your buyer. Perhaps good price too.

I am a trader too. My customers love to do business with me is because I can always find good quality products for them. Of course the price would be higher than direct factory deal. Other than share the risk, I also give ideas and provide many useful information to my customers. I will be very upset if any of my customer want to make a bit more bucks to cut me off.

Hi Jasmine,

If I'm the buyer, I will be placing my next order through B. WHY? Because they did their jobs. Always remember this, you can not earn big furtune if no one helps you.

I would NOT place my orders through B ONLY if B is making much more than the A and buyer do!

As long as you think you are happy and fair prices, I don't see any points to cut the B out as my opinion(I work for a factory).

If i were the buyer,  i will contact with factory directly as long as the factory is always honest  after the first cooperation through trading company.There are so many scammer trading company in china,who could assure that the trading company u cooperate with is honest or not?

It is true.If u cooperate with a honest trading company not a scammer and the supplier is not  very honest,then they will share your risks and profits.

It is also true,if u contact factory directly as long as the factory is honest and has some professional  foreign trade sales who know how to settle export business for customers .If the factory is honest,why share profits with trading company the secondtime.u could get very reasonable price from factory by cut down price.and u will make so much profits and best after-sale service .it waste time for buyer to talk about the after-sales service through trading company.Additionally,the trading company already get what they deserve for the first deal for their introduction.

In my opinion,Get More and more profits is businessman's main goal .

PS:many overseas customers purchase products through trusted trading company ,AND the trading company will usually ask suppliers to pay them private commission by adding unit price and on other hand,they get another commission from buyer.thereinto the purchase cost of customers will increase .It is real thing .Because I had experienced this kind of thing.

Last month,an trading company owned by India take their customer (from India too) to visit our factory.EvenThe boss of this trading company is friend of the india customer.In the way my boss pick them up ,their boss asked their chinese employee to talk with my boss to ask us to pay 15%commission in private by adding unit price.I could not understand why the trading company ask 15% commission because the boss of trading company with customer are friends.they told us they are friends.friends? I doubt that if there is a real friend in the world.I think i could only believe myself .nobody i need to believe.

At last ,my boss accept and add unit price.I just tell the truth and i don't want to tell any bad words behind them.just it is the truth.

Quoting from [yixiaohua]:

You mix up things to talk about. In HK, if someone from the compay ask the supplier to give him private commission, both person will go to jail. Do you understand the meaning of corruption?

We are talking about a trading company and a factory. A trading (could be a company, could be a person) introduce a factory to a buyer. And a buyer is happy with the trading. Then why cut the trading out of sight for future business?

There are many factories in China make good quality products but do not know how to promote themselves or they are in the mobile area. Without the help of trading company, they are hard to find customers. Think about these factories as well.

Think more the role of trading. Why they still exist when there are so many factories in China has people can speak & write English?

Your bad experience is because of many people in China still living in the age of "corruption". We should stop corruption in China. Then every parties can make a living in a "clean" way.  

Thanks for everyone's comments.

It is really an interesting topic to discuss about.

It seems to me that each party has its standing, stand for their profits.

As a Chinese, as a sourcing agency (sometimes working as a trader also), I also don't my buyers cut me off when I am in the same boat.

It is right that we have paid our work, it is really not fair to cut us off after the first transaction.

But this is only what we (Chinese, and Chinese trader) think. What foreign buyers think of it?

I try to tell my buyers the truth when I am being asked. I want to be a honest person. That is it.

I really would like to hear western buyers' comments.

Quoting from [faucet_maker]:

Hi Jasmine,

If I'm the buyer, I will be placing my next order through B. WHY? Because they did their jobs. Always remember this, you can not earn big furtune if no one helps you.

I would NOT place my orders through B ONLY if B is making much more than the A and buyer do!

As long as you think you are happy and fair prices, I don't see any points to cut the B out as my opinion(I work for a factory).

I couldn't agree more with you. You are fair.

I agreed your sentence of "Because they did their jobs. Always remember this, you can not earn big furtune if no one helps you. " But as I said, this is what we(Chinese) think, but how about the foreign buyers think of it?

I really would like to know their comments.

If you are the buyers, when you know the real factory, will you still do the same?

What you said at the end, "As long as you think you are happy and fair prices, I don't see any points to cut the B out "

In fact, this was what my buyer's chose. You can refer to his email. I also admired him a lot. 

Quoting from [hellojasmine]:

Quoting from [faucet_maker]:

Hi Jasmine,

If I'm the buyer, I will be placing my next order through B. WHY? Because they did their jobs. Always remember this, you can not earn big furtune if no one helps you.

I would NOT place my orders through B ONLY if B is making much more than the A and buyer do!

As long as you think you are happy and fair prices, I don't see any points to cut the B out as my opinion(I work for a factory).

I couldn't agree more with you. You are fair.

I agreed your sentence of "Because they did their jobs. Always remember this, you can not earn big furtune if no one helps you. " But as I said, this is what we(Chinese) think, but how about the foreign buyers think of it?

I really would like to know their comments.

If you are the buyers, when you know the real factory, will you still do the same?

What you said at the end, "As long as you think you are happy and fair prices, I don't see any points to cut the B out "

In fact, this was what my buyer's chose. You can refer to his email. I also admired him a lot. 

It really depends on the customers Jasmine. There are many type of buyers in the world. Some of the customers found out that if you're a trading company he will contact the factory directly instead of going through a trading company. But some are very honest and truable buyers who will always buy from you, as long as they are happy dealing with you.

I met many of them, some contacted us directly and some still dealing through a trading company. FAIR for all of us!

Quoting from [hellojasmine]:

It depends on the trader I think. If he is adding only a small amount to the factory price just to cover his effords then it is best to deal with trader. especially if the buyer is in another country and the trader is nearer than him to the factory. But if the trader is ripping off the buyer by multiplying the factory price by 10, then best to deal with factory direct or find another trader.

I am a trader but my first concern once a purchase is made by the buyer is to see that the buyer gets the goods exactly according to his terms and to his best satisfaction even if it means losing some profit on my side. my second concern is to have the buyer come back again and again by giving him the best service at the lowest possible price.I think that is the most profitable way in the long run