Safe China Sourcing, Eight Questions To Avoid The Scam Artists
China is well known as being the factory of the world, and there isn't anything that has not been produced or manufactured in China.
It's so well known that retailers and trade experts from all over the world travel to mainland China to get their wholesale goods manufacturered there.
But this is not to say that everybody who comes to China to source wholesale goods comes away a happy customer.
There are many importers out there with horror stories of items made to the wrong specifications, items that arrived broken or 'manufacturers' that acted in a a downright fraudulent manner.
Thankfully there are 8 simple questions you can ask yourself to determine whether you will get a good deal or a raw deal from a potential supplier:
**Question One. Do they have good quality products?**
While this is often difficult to determine, there are a series of things you can ask suppliers to determine if the wholesale items you are sourcing will increase your reputation, or harm it.
Questions you need to ask to know if the consumer electronics you are thinking of buying are good products include:
* Has the product passed the necessary tests to be sold in your market?
* What materials were used to produce the product?
* How long does it take the battery to get to full power?
* How long will the battery last?
* How far will the wholesale items' infrared system work in meters?
* Does the product make any noise when operational, what, how much?
* How much does the product weigh, how large is the product?
Get as much physical testing done with the item in China as you can as it is less expensive than doing it in your home country.
**Question 2.Does the packaging look good?**
While some factories produce good quality products, the packaging can be a different story.
Here are some questions you should ask suppliers:
* Can the factory repack an item if its original box is unsutable for you?
* What materials are they using to pack and present the product?(lead paint can rear its ugly head)
**Question three. What is their promised lead dime, can they deliver on it?**
Customers will always want items they buy to ge to them instantly, no matter where you are.
The supplier should have the capability of ensuring the delivery time you need. This is very important to inquire about as lead time is now just as big a deciding factor as
**Question four. do they have competitive prices?**
While price is worked out by several factors the main one is likely to be the quality.
Dont take the first price you're offered at the first factory you visit. You will always need to shop around and bargain with the potential supplier.
You should always source and visit more than one supplier, in fact you should visit SEVERAL suppliers!!!
**Question five. Do they have a MOQ? How many items do you have to order?**
The MOQ is just as important as the price, the quality and the lead time of wholesale goods... it just tends to be left till the last minute more.
In fact the Minimum Order Quantity (MOQ) requirement might just be a deal breaker.
Everything else might be right with a product but if the manufacturer asks you to order more wholesale stock then you have the capability of handling you might have to throw the deal away.
Normally, some MOQ requirements are reasonable and acceptable, but if suppliers ask for four times the MOQ than you can accept you may want to think about looking for an alternate source.
These are the two questions you need to ask yourself before commiting to such a large wholesale order:
A) Are you happy having such a large part of your working capital tied up in inventory?
B) How fast will you be able to sell the items sitting in stock?
**Question six. Is the factory being open and honest with you? **
The supplier must be open minded and honest with you. They should understand your business needs and accept that the lead time, price and MOQ you can accept will depend on the size of your business and your business operational procedures.
The realities of the business world are that there will never bea competely open and honest relationship.
All you need to do is to gain their trust through tactful dialogue. Let them answer your questions and pay attention to what they say. Ask yourself whether they really answered the question with the information you asked for, or just talk around the question.
Test their knowledge of the products and ask them point blank what the faults are. If the vendor is honest they will tell you, even if in their mind it risks the deal going through.
**Question seven. Are you being fair to each other?**
People like to be treated fairly in life and business. Fairness will lead to good business relationship with your supplier, and help tremendously down the line.
Building good rapport with your supplier is highly advisable as it helps build a long term relationship with them, and get better prices, more favorable MOQs, better lead times and all over better treatment later on.
You should also understand when a factory cannot give you the lead time, price or MOQ you want and end negotiations on friendly terms.
You should be fair in understanding that they have a business to run, just like you do.
**Question eight. What is the factory capacity / organizational structure?**
A good business man should always learn about the suppliers and factories organizational structures he is sourcing from.
Be sceptical of any manufacturer that claims to be able to meet a large order with only a handfull of employees.
Have a look at their machines and the building surrounding them. Is the workspace clean? Does it look well run to you or is it complete mess and cannot make head or tails from?
A well run factory should be fairly easy to spot. Ask them how many employees they have, what their output capacity for a certain product is and how they manufacture these products. Also ask where and how they package and store products after they have manufactured them.
You might experience difficulties in communicating with suppliers. And even though most suppliers have an English speaking employee, you should always have a translator with you, as it means that you have someone on your side who speaks the language.
So start doing your research now and get an idea of your market.
Any spadework done before you touch down on your next sourcing trip is sure to pay off in buckets.
Don't wait to come to China to get direct from the factory prices. Get them right now. Visit http://www.chinavasion.com - your no fuss, no risk, no MOQ source for wholesale consumer electronics.
About the Author:
Rose Li is the PR Manager for Chinavasion, China's premier dropshipper for wholesale consumer electronics
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