This article was writed by a Englishman, I just copy and plaster it, I think it should be usefull for someone.

Tips for visiting suppliers in China

Hey,

To be honest, I have nothing better to do and I did a business trip to China last year and learnt alot from my experiences and just thought I should share them. I went to China for 2 weeks and visited about 5 cities, went to

-Shenyang

-Shanghai

-Guangzhou

-Shenzen

-Foshan

The most important aspect is language, now I presume most of us dn't speak mandarin so ideally you either want a supplier who is willing to supply a translator/guide or you can hire your own. Before you go out though, its vitally important to let all your prospective suppliers know and sit down and write down your own agenda and plan (Stick to this) because once you get to China, everyone is a potential supplier but dn't waste your time visiting every single shop, determine which offers the best quality/price for your particular product.

Culture:

Now I hope I dn't stereotype or generalise for this and if i do, please ignore it, its not meant. When we went, our suppliers were excessively generous, you probably will be thrown off by this, they will not let you spend a penny, they'll take you out to lunch, provide a car, driver etc and it makes you feel incredibiliy guilty, its arguable whether this is simply a sales tactic or generosity but be aware of this and dn't let your business sense wane because of this. I guess, you should also get used to Green Tea, as you will be offered it every you go . Always bargain and be ruthless in bargaining, its the only way, its not common here but regardless of what size of company your supplier is, I bet thier prices will always drop.

Business:

Always keep a camera with you but also before you take it out and start snapping away, simply kindly ask your supplier as its prohibited in alot of factories. However, if you see the product you are interested and the supplier is kind enough, take pictures of it, as many as you can as once you come back, it will aid you chose what to go for and after shipping you can also compare it with the actual product you saw. Usually the supplier has a shipping agent they use, but be aware, alot of prices are FOB not CIF, so always ask for CIF as it makes life alot easier. (FOB = free on board so basically they will load the goods onto a ship, CIF = Cost, Insurance + Freight so this is the price for shipping to england). Also, if its a large order, Bank TT's tend to create alot of hassle if things go wrong, instead I would always recommend using an L/C for all transactions. This is a letter of credit which basically means, the bank acts as a liason between you and the supplier. You pay the bank and the bank holds onto the money until the goods are recieved, once they're recieved, you give the A ok to the bank and it releases payment to the supplier. Ofcourse their is a charge for this but if you are buying from a supplier for the first time, it very helpful in reducing risks.

hi , glad to read your article , I am also a chinese supplier , I am lucky not meet  a customer like you . if you want to do business with somone , you can bargining with him ,no problem , but if you dont interest in his company ,pls dont waste too much time ,

You gave a good advice to the buyers , but not good for supplier , everyone want to do bussiness , if everyone rudely when bargining  like you , who can do business .

Give  both of us some zone , we are business man , reasonable price can accept . the main reason for business is for profit , no one will do business with out any profit .

Hope every buyer can understand this

 

hI .I AM HAPPY TO SEE LIKE THIS USEFUL INFORMATION  ,                                                            WILL CARE ACCORDING TO UR VALUABLE ADVISE,                                                                                                                                                                                                      M.ASFOUR          

most of the time when everyone makes money the relationship is always very good. Getting the initial shipment is the difficult part. Kevin

Ms.Nicole Wang has a point too. Bargaining can't be a thumb rule. Sometimes it may throw spanner in the wheel. Coming to the "excessive" genorosity, it shows amartha's little understanding of the hospitality the Chinese, the Japanese, for that matter, the Asians are known for.

Letters of Credit are payment instruments and bills drawn against them are paid as per apparent tenor, when documents drawn as per the terms of L/c are submitted at the counters of the Bank. Bank will not wait for buyer (importer)'s consent for making payment under this instrument.

However, his otherwise detailed tips are really noteworthy.

-S.Baskaran, Chennai, India

Overall I liked the comments of the writer, especially because he doesn't expect anybody to be a guru in the culture of the country he is going to visit. It would be great if you knew everything about all the countries you want to visit, but in real life not very likely. Also the comment about taking pictures was good.

Where I don't agree is the comment about bargaining. If it is a one-time purchase it might work, but still isn't a good idea. Word of mouth spreads and will have a negative impact on purchases in general. If you want a loyal provider, be a loyal customer. Talk sincerely about the possibilities of lowering the price, but don't go too far.

I would say this is a pretty good article except for that part about using a suppliers translator and even getting your own. Supplier translators work for them and can't be trusted as obviously they are going to be more loyal to the person paying them. Also becareful when hiring your own translator as they have a knack for somehow working their way into the deal and every time you reorder they will be seeing some profit. Maybe not much but some.

I have friends in China that have had seen as much as 10% added to per unit prices as a kickback to the translator for directing business to the factory. This is very very common practice here. It can happen on CIF pricing as well. I have seen a difference of 200-500usd pricing difference from my own shipping company and the rates offered by suppliers. That usually will be handed back as a commission to the sales person of the supplier.

I also agree though that running the price into the ground on a supplier is not an ideal way of doing business and especially if it is a one time transaction. Generally speaking most suppliers will charge a higher price and won't move on it in the first order. On a reorder usually you can see much better pricing.

we are from nigeria and will like to visit for a market oppourtunities

Thank you for the tips

They are quite right,but

i wish somebody else would give some tips bout potential buyers in China.


regards

Jay

I think both of them(customer and supplier) should be honest, that's enough to start the business.

please contact me if you were in Guangzhou for business.
my skype is: jacklsg2008
Thank you