How Can I Get Fairer Quotes from Chinese Suppliers?
Post 1 of 36
Dear friends
When I take quotes from China I get high prices but purchase agent is able to get cheaper quotation from same company, although the quantities demanded are same.
I am not able to understand how can I make Chinese suppliers reduce there bid to proper level.
Madhur Agarwal
When I take quotes from China I get high prices but purchase agent is able to get cheaper quotation from same company, although the quantities demanded are same.
I am not able to understand how can I make Chinese suppliers reduce there bid to proper level.
Madhur Agarwal
30 Jun 2007 02:07
Post 2 of 36
Replying To [Madhur_Agarwal]:I don't believe this.
I think you are telling stories!
![[em3]](http://img.alibaba.com/images/eng/style/icon/emoticons_grin.gif){kind=icon}
30 Jun 2007 02:21
Post 3 of 36
Replying to [Madhur_Agarwal]:Of course their opening offers are always high coz they know you are going to ask for lower prices. And when u do their usual reason will be the cost of raw materials has gone up, our quality is the best blah blah blah.
30 Jun 2007 03:09
Post 4 of 36
Replying to [grigo]:
Dear Friend
This is not story.
This has been echoed by many of my buyers also.
Madhur Agarwal
Dear Friend
This is not story.
This has been echoed by many of my buyers also.
Madhur Agarwal
30 Jun 2007 06:22
Post 5 of 36
Replying to [Madhur_Agarwal]: You have to try to negotiate. Like on one of my orders, the MOQ was $500USD but I spent $200 . So didnt have to spend as much. My next order will be a bit bigger and now that I know they are open to negotiating, I'm gonna try and knock the price down a bit.
. So didnt have to spend as much. My next order will be a bit bigger and now that I know they are open to negotiating, I'm gonna try and knock the price down a bit.
30 Jun 2007 11:51
Post 6 of 36
Replying to [joanofarc]:
Remember we are dealing with exports and imports and direct with the factory, as i am not a big buyer i have to fight to get the right prices and deals as a complete package, but my orders for last mth was 14000 pcs of products and in truth if i want to get the best deals i need to order container loads, $1000 - $3000 deals i would fit in the sample class so would expect to pay more.
When you deal with some suppliers and your exports volume is $500,000 i am sure they would let you order samples and get the best prices, long term business is not about little orders, you can start with samples sure, then you need to make a real order to start the process, and later move up.
I contacted a new supplier for padlocks, we wanted the best deal from them and use our brand name, at first i did not want to order many, so ask for 1000pcs to start, we ended up at 3000pcs, and i am sure if we sell well the next order would be more than 3000pcs, and the cost is still over $15k.
Remember we are dealing with exports and imports and direct with the factory, as i am not a big buyer i have to fight to get the right prices and deals as a complete package, but my orders for last mth was 14000 pcs of products and in truth if i want to get the best deals i need to order container loads, $1000 - $3000 deals i would fit in the sample class so would expect to pay more.
When you deal with some suppliers and your exports volume is $500,000 i am sure they would let you order samples and get the best prices, long term business is not about little orders, you can start with samples sure, then you need to make a real order to start the process, and later move up.
I contacted a new supplier for padlocks, we wanted the best deal from them and use our brand name, at first i did not want to order many, so ask for 1000pcs to start, we ended up at 3000pcs, and i am sure if we sell well the next order would be more than 3000pcs, and the cost is still over $15k.
30 Jun 2007 17:25
Post 7 of 36
Replying to [Madhur_Agarwal]:
You are correct. The reason was because as an purchasing agent, they can do outsource anyway they like as long as the price is cheap. They can even buy it from home industries where low eletricity cost, labor cost etc. Let me tell you an actual fact what i had seen in china.
We are a fastener manufacturer and sometimes go to china to buy screw that we cannot produce. What we did is to give the purchasing agent our target price.
The purchasing agent gave a very good price compare to china manufacturer. After placing order, we flew to china and was shocked that the manufacturer was a home indstries where the electricty was stolen etc. As for us, the most important that they just follow our quality standard. ANd surprisingly it really follow the quality we want as long as the agent paid a very full attention on quality. AS an agent, they will pay extra attention on our quality so that the customer will still buy from them for long term.
Some purchasing agent e.g. in Taiwan, they will buy the raw material and sub-contractor to factory. What they need to know is the cost of material they bought + sub-contracting cost per piece.
For manufacturer like us, our cost are variable. AS for agent, they only want buy at fixed cost. Therefore, they cna be cheap.
Another reason why some china manufacutrer can be more expensive than agent was because a big china manufacturer like us work the same thing, We have our own customers. Like every sellers always looks for better price so as the buyer always try to get cheaper from their current supplier. We gave a high price to buyer thinking that we will get a good price comparing to our current customers. In returns, our new buyer gave us their target price and in order to secure this order, we have to match their target price as long as the price is not too low.
ANyway, we are fastener manufacturer base in Indonesia and not in China. In order to save a lot of time, we urge buyers should give their target price but not ridculour price because no one will be interested to quote you. Beside, China are very capable to accepting low price but you never be safe when you see the products you bought. The quality offer to you is exactly the value money you had paid. You can't really blame the china manufacturer. As for us, we will just tell the buyer we cannot accept low price.
You are correct. The reason was because as an purchasing agent, they can do outsource anyway they like as long as the price is cheap. They can even buy it from home industries where low eletricity cost, labor cost etc. Let me tell you an actual fact what i had seen in china.
We are a fastener manufacturer and sometimes go to china to buy screw that we cannot produce. What we did is to give the purchasing agent our target price.
The purchasing agent gave a very good price compare to china manufacturer. After placing order, we flew to china and was shocked that the manufacturer was a home indstries where the electricty was stolen etc. As for us, the most important that they just follow our quality standard. ANd surprisingly it really follow the quality we want as long as the agent paid a very full attention on quality. AS an agent, they will pay extra attention on our quality so that the customer will still buy from them for long term.
Some purchasing agent e.g. in Taiwan, they will buy the raw material and sub-contractor to factory. What they need to know is the cost of material they bought + sub-contracting cost per piece.
For manufacturer like us, our cost are variable. AS for agent, they only want buy at fixed cost. Therefore, they cna be cheap.
Another reason why some china manufacutrer can be more expensive than agent was because a big china manufacturer like us work the same thing, We have our own customers. Like every sellers always looks for better price so as the buyer always try to get cheaper from their current supplier. We gave a high price to buyer thinking that we will get a good price comparing to our current customers. In returns, our new buyer gave us their target price and in order to secure this order, we have to match their target price as long as the price is not too low.
ANyway, we are fastener manufacturer base in Indonesia and not in China. In order to save a lot of time, we urge buyers should give their target price but not ridculour price because no one will be interested to quote you. Beside, China are very capable to accepting low price but you never be safe when you see the products you bought. The quality offer to you is exactly the value money you had paid. You can't really blame the china manufacturer. As for us, we will just tell the buyer we cannot accept low price.
30 Jun 2007 17:36
Post 8 of 36
Replying to [KMP LTD]:
Dear Friends
So according to you, I can negotiate to reduce it by 35 - 40 %.
Madhur Agarwal
Dear Friends
So according to you, I can negotiate to reduce it by 35 - 40 %.
Madhur Agarwal
30 Jun 2007 23:26
Post 9 of 36
Replying to [JBsportsuk]:
Dear Friend
Thanks for suggestion you have a very valid point.
Madhur Agarwal
Dear Friend
Thanks for suggestion you have a very valid point.
Madhur Agarwal
30 Jun 2007 23:28
Post 10 of 36
Replying to [joanofarc]:
Dear Friends
So you got a great deal. That was amazing to know. I think I have to negotiate in a big way now.
Madhur Agarwal
Dear Friends
So you got a great deal. That was amazing to know. I think I have to negotiate in a big way now.
Madhur Agarwal
30 Jun 2007 23:30
Post 11 of 36
Replying to [uniflex]:
Dear Friend
I agree with your point that manufacturer can not go down a certain limit. He has to take bit of margins.
When we go to China we expect that they have better bulk and there manufacturing cost is lower, so it is best to get complex items form them.
I was surprised to know about home manufactuing going on China, though it is of no concern if they are able to maintain quality standards.
Madhur Agarwal
Dear Friend
I agree with your point that manufacturer can not go down a certain limit. He has to take bit of margins.
When we go to China we expect that they have better bulk and there manufacturing cost is lower, so it is best to get complex items form them.
I was surprised to know about home manufactuing going on China, though it is of no concern if they are able to maintain quality standards.
Madhur Agarwal
30 Jun 2007 23:36