12 Tips To Get Lower Pricing From Factories In China

The Trade Wars

  • Current status: negotiations ongoing
  • How it affects imports: Tax in UK 2.67% versus US 17%before but now at 42%
  • What to do: Shippings are on hold for China suppliers
  • Alternative route, find other suppliers in Asia: Vietnam, Myanmar.
  • Issues: Customs may question the costing, if you decide to change cost or go that route.
  • What China manufacturers are doing: Set-up factories in other countries in Asia
  • Other countries are becoming more strict on goods coming from China: Ex. Myanmar and their customs fees may go up
  • Things may change any moment so stay in touch with your suppliers.
  • Talk to your manufacturers – they have inside news.

Lower Pricing Strategies

  • Make sure to maintain quality despite the low pricing
  • Strategy #1: Imitate and Innovate – find out what products your manufacturer is really good at and innovate on that product.
  • Note: if you develop a product from scratch – you are paying factories development cost and development time. 
  • Lesson: Take an item that is already working. Change color/ dimension/ improve
  • Strategy #2: Compare apples with apples Get the specifications of the product that you want to import and send it to four different manufacturers and compare their pricing.
  • Note: Once you get the pricing back then go to the highest priced manufacturer and say you have a lower bid from another, and ask if they will match the pricing.
  • Strategy#3: The favorite supplier when you choose a supplier, you choose them for the long term.Make sure it is someone that you get along with. Build that relationship through WeChat or actual visits. 
  • Strategy#4: Let them know if you supply internationally. Chinese manufacturers can adapt to your pricing request if you let them know why you need a lower pricing. Ex: I am supplying Europe, Japan etc.
  • IMPORTANT: Don’t go too hard on price because China will give you any price you want. They will take shortcuts on quality if you drive a hard bargain to reach your price.
  • Educate yourself on the market price so you know the correct price they should be offering you
  • Strategy#5: Upsell quantity – Let them know if you are planning to work with them long term. State that when getting your first order, they might be willing to lower the price for a lower MOQ.
  • Strategy#6: Create good credit – You can let them know of the deal you have with a big client but that you are financing that order for 90 days or so, you can also ask them to lend you credit for landing big customers.
  • Strategy#7: Overstock – Ask your customer what they are holding in stock like a previous customer cancelled an order and they have that in stock.They can give you half price for that material or stock.
  • Strategy#8: Monitor the exchange rate
  • Strategy#9: Location equals rebates 
  • Strategy#10: Build Relationships Visit them! You get better deals, exclusive offers, discounts, credits, information and orders are prioritized. Listen to why relationships are important on this previous podcast HERE
  • Strategy#11:Learn the process When you visit the factory: check the manufacturing process from start to finish. You might be paying for excess material which can be saved from being wasted and reused for other products.
  • Strategy#12: Compliment your staff in front of others. Praise in public goes a long way.
  • Connect with Kian Golzari
    Facebook: Sourcing with Kian
    Website: www.ChinaMagicTrip.com
    Instagram: @Kian_jg

    Connect with Danny in HongKong on the 27th-28th!
    AMZ Masters event coming up on August 25- 28!

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    • AMZ Masters is the A to Z of Amazon selling and will cover topics like:How Ranking Works & Launching, Shipping, PPC – doing it yourself; and Sourcing
    • Speakers in this event will help you gain insights on starting it right or how to improve your Amazon account performance .

    Find out more and see if AMZ Masters is the right fit for you! Join the AMZ Masters HERE!

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