Community > Forums > Basics of Import-Export > How negotiable are the initial manufacturers quotes.
Post a topic Post a survey Forum Guidelines

How negotiable are the initial manufacturers quotes. 26 replies,3392 views

#1
Hi I have contacted several manufacturers in China with a view of purchasing a 20ft container of furniture as a sample order. I have been quoted $528 per set with 12 sets in the container. After VAT, Duty and Shipping costs this rises to $940 per set. The retail costs are around $1100. So this does not leave much profit if any at all after selling costs. This seems to me to be quite high. So how negotiable are the manufacturers initial $528 quote. It does seem furniture may not be a good product to import to the UK. So how much over priced are the manufacturers quotes and how low can they go?



#2
Re: How negotiable are the initial manufacturers quotes.
That is a question that is difficult to provide a specific answer to.

Manufacturer costs and profits can vary significantly depending on many different factors including things like, employee salaries, location, infrastructure, size of the factory and economies of scale they can produce.

So while all manufacturers should have included some leeway in their pricing to allow for a reduction, the amount of that reduction can differ. And quite honestly, many will provide less in price reductions that they used to because they are working on thinner margins than previously.

The best advice I can offer you is for YOU to know how much you are prepared to spend for the product. Based on your overall costs, what do YOU think is the appropriate amount to pay given you want to make a specific % of profit on that product.

Just as an example, others may retail for $1100, but they may be buying 10 container loads and getting better pricing based on their quantity, or their quality may not be as good as the more expensive supplier.

This is why you need to know how the products fit into your market so you can know what they are really worth and how they compare to the existing products being sold.

And if you cannot negotiate the price that you think is appropriate be prepared to walk away and look for other suppliers.

But don't forget, its all well and good to look at getting the discount form the supplier, but also bear in mind that over 40% of the cost is not supplier related at all. It is shipping cost, VAT etc.

#3
Re: How negotiable are the initial manufacturers quotes.
One other point based on my previous comment, with your shipping, have a look around and get some different quotes.

I do know of a company in the UK who may be able to offfer a good quote and they provide a good service. Contact me through the messages on trade manager with your details and I will pass you their details. I receive no payment or benefit from them.
#4
Re: How negotiable are the initial manufacturers quotes.
Hi James,

I'll start of by plugging my company - Woodland Global - We have some good rates for shipping from China to UK (Both FCl and LCL) so please don't hesiatte to email me or message me for a quote.

darren.brundell@woodlandglobal.com

Now thats out of the way, on to your question. Everything is negotiable, however there is a bit BUT to this.

If the suppliers proft margin is reduced greatly so they are making very little profit, they will not be as keen to deal with you, and probably not as helpful.

Secondly, you pay for what you get in China. If you barter down the price too much, its likely the supplier will use less quality materials, etc. so the final product might be poor. (And not match to any samples).

Often importers I deal with ask for 'cheapest'. Cheapest is not always best.

Kind regards,
Darren.

#5
Re: How negotiable are the initial manufacturers quotes.
you can communicate with the seller ,good luck to you,friend!
#6
Reply #
xiaoyanuo123 wrote:
you can communicate with the seller ,good luck to you,friend!
good ideal!
#7
Re: How negotiable are the initial manufacturers quotes.
Give them your target price,a little lower than $528,i think they will satisfy you if they know your bottom line.
#8
Re: How negotiable are the initial manufacturers quotes.
know more the original price of your products,including the price of your original materials, processes and so that you may know the detail profit of your supplier, and then you may get lower price, i think it is the most important step to get down your whole price.
#9
Reply # 4 Brudsy

Im likeing what im hearing and seeing that china is becoming not so cheap after all and when you buy cheap you get cheap it will be soon reverse companies in the uk and other countries will start manufacturing their own products better quality for same price as china bring on the over priced products  so far ive had nothing good from china its all cheap and cheap in quality too not to mention ive been scammed by a chinese company called

http://www.flyda-industry.com/

 

 so stay away from this fake website

good job i only lost us$135

#10
Re: How negotiable are the initial manufacturers quotes.
[em7] Price is visible now , the manufacture won't give u a high price for such bad time of Global Ecomony Crisis, try to get more essential infromation from the quality and the Ocean Freight, Good quality stuffs always mean a little bit more cost , good luck to you !
SIGNATURE:
About Our Company

Foshan Oushiba Car Appliance Co., Ltd.
Established in 2008, Foshan Oushiba Car Appliance Co., Ltd. is a professional and high-tech enterprise based in Shunde, Foshan, Guangdong, enjoying convenient transportation access. It takes 40 minutes' drive to ... More

#11
Dear Responsible, (Economic Price and Good Quality Home Bedroom & Diningroom Sets )
Dear Sir, Altin Koza Furniture is a manufacturer of Bedroom & Diningroom Set.We are based in Inegol Bursa, Turkey. We are looking for a permanet customer who can be our distributor in your country. Please visit our website and check our products. If you are interested to import and distribute our products in your country on anexclusive basis, please contact us. Our factory is based over 3000m2 area and we have 10 years of experience in Home Furniture manufacturing. Our factory production capacity is 750 set per a month. Our Company is export-oriented manufactures its products according to European standards. Alt1nkoza Furniture has an understanding of health care and high quality, gives service ''the aim of integrating the different models and designs in an effort to always exceed customer expectations and using E1 standard "SUNTALAM". Also I have attached our product catalogue to this email.For more details, please visit our website: http://www.altinkozamobilya.com If you have any questions, do not hesitate to contact me directly. Best Regards Ms.Seda Pehlivan Export Manager

Forum Guidelines

For general Alibaba.com customer inquires, please Contact Us.
To lodge a dispute/complaint, please visit our Complaints Center.
For general AliExpress customer inquiries, please Contact Us.
If any posts corresponding to the categories above are located in the Forums, they will be deleted without prior notice.
Subject:
Message: