I was wandering why many companies in China won’t work for 50/50.

My point is, for instance if we take as a sample motorcycle manufacturers I found that there are approximately 3000 factories in China. Of course some of them very reliable but others just a scams.

Any way big competition.

Currently I am running my own firm and sent couple of enquires to these factories with offer to work together for 50/50 (50% payment an advance and 50% after product sold out). More other offered to represent their interests in the UK and be as a distributor. Even I was agree to visit in person those factories in China for further discussion. But unfortunately my offer has been declined.

I think it was good strategy for Chinese companies in terms of to expand your market share.

What do you think?

Also I want to hear from Chinese manufactories their opinion regarding this issue.

Is the big problem based on trust or something else?

 

 

chillout, is english your first language?

Quoting from [Skyliner]:


chillout, is english your first language?

Unfortunately no.

Quoting from [Chillout]:

Quoting from [Skyliner]:



chillout, is english your first language?

Unfortunately no.

Would you like to give some English lessons? By the way its good business. Better than solving problems with suppliers for 15 hours.

the problem is the time .the time means money

Yeah, do check all your spellings before you send emails.

Ok, 50/50 won't work, why? because everybody in China has been scammed enough already. China also has more scammer than anywhere else due to it's weak legal system. (it is been improved, but...... ) However, don't think must people would offer 50/50 anywhere now, all use L/C with different period.

If you want to pay it later, do it in next order. Don't even dream you could get anything out of them on first order, try negociate on next order or next next order.... best way, use longer period of L/C if you have good relation with the bank. So you could get 100%, sold before pay.

Hope this help : )

Replying to [Start]: it is reasonable, you are quite familar the chinese suitation!

Replying to [Chillout]:

If you proposed me with this deal, I would accept your offer only if my profit margin were over 100%. You said you would pay 50% in advance and 50% after the product is sold out. So what if you can't sell the product? How is the factory going to inspect whether the product has been sold? If you can't sell a product, who will pay for return shipment? Would you ask for your 50% in advance back? Think of it this way. Do you think the factory's raw material supplier would accept such a term. If you don't want to take the risk of paying for the entire product and taking full risk/responsibility then listen to people's advice and become a distributor.

I know many Chinese companies (well any company in general) look for growth, but yours is too risky of a strategy for normal businesses to accept. Everybody knows many industries in China are increasingly competitive, but the safer way to increase business is in not compromising business standards and improving by fulfilling unmet needs and continual innovation, not gambling on business.

Replying to [edjjhsu]:
Can't be more agree with edjjhsu... Well, but if you know any company that would do that in any manufacturing business, I'd love to know...

Replying to [bizzman]:
who need tea at any time let me know

Replying to [Chillout]:I can understand this situation, I am also working for a furnitrue factory in China.As a supplier, we'd like to establish long friendly cooperation with our overseas clients, your payment terms we'll consider if he's our old customers,there're good credit between us. As a new client, we often do by irrevocable and confirmed L/C, it's equal for sellers and buyers in international trade.

I'd like to make friends ,maybe we can cooperate with each other some day.I suggest you'd better have office in China,it's good for you to check everything at any time.

Thanks for your time.

Shirely
To prevent spam, do not enter your contact information - Moderator