What are the hidden costs with both? Is it really less expensive to deal with a factory, or are there advantages to dealing through an agent?
Quoting form [Admin]:What are the hidden costs with both? Is it really less expensive to deal with a factory, or are there advantages to dealing through an agent?
Generally speaking yes. But It depends.
Sometimes, the manufacturer is not a professional exporter...in that case, things are not going to be as smooth as you expected...
Get profits is the leading aim for every corporation,generally.
So when you directly buy from the first-line of seller,skip the middle agent you will get a more preferential price.
Thanks Cool Manley.
I think things are a little bit more complicated than just yes or no.
For example, a manufacturer is willing to offer lower price (but often with higher volume) to a trader who he/she has worked together for 10 years, whereas he will charge higher to a new buyers coming from another continent.
As least that's what my friends are doing.
Well, it depends to a person whether he is a manufacturer or an agent. If the motive is for much profit or dishonest gain the issue is not the subject above. An honest or trusworthy person always look for an honest business relationship and that includes the price.
Yes, I thinkchinagateis quite right.
Nowdays international business group such as Carrefour will first inspect your factory and goods
It is not always cheaper to buy factory direct. Many times it is cheaper and faster to buy from a wholesale/distribution company.
Wholesale/distribution firms are often specialized in dealing with manufactures and importing/exporting laws.
Also often times quantity plays a major role in the price you will achieve, regardless of who, where or how you purchase your products/goods.
I have found being in business for twenty plus years, do your homework for any and all channels of distribution process and you will learn what best suits your needs.
Most small and home based business are NOT at an advantage to purchase factory direct. There can be hidden expenses that you could be unaware of that many times will double or even triple your final cost.