Finding the Right China Manufacturing Partner
There is a great deal of benefits awaiting a company that can hook up with a good Chinese manufacturer. However, there is much more involved in the process of China sourcing than simply grabbing a willing party. There are various pitfalls that loom around doing business in China so here are a few tips that will help you not only find a Chinese manufacturer, but one that is the right choice for you and your business.
Meet Face to Face
This is an important step for anyone doing business of any kind, but especially in China. By meeting prospective business partners face to face, you get a much better feel for their character than by just meeting over the phone or internet.
One of the main objectives when searching for the right business partner is to find someone that you can trust and that is reliable. Endless headaches and losses in customers and money are the result of unreliable partners, so it’s well worth the effort to meet and evaluate potential China partners face to face.
Sell Your Vision
The Chinese are a bit more aggressive when it comes to business ventures. If they see the slightest possibility of success in an idea, they will jump on and go with it. This is even true if you are only a small, upcoming business that has yet to prove yourself.
Therefore, you want to convince manufacturers that you have a strong vision, a bright entrepreneurial spirit, and a lot of enthusiasm and most will be eager to do business with you.
Demand the Best Product
Common knowledge is that Chinese companies have the tendency to produce cheap, shoddy products. And, although that used to be expected, more consumers today are looking for better quality in the products they buy from China. Therefore, when you are negotiating with a manufacturer, demand the best quality in China products from the beginning.
The best way to determine production quality is to request several prototypes of the product. Carefully inspect each one and ensure that they all are 100 percent perfect before moving forward. The reason for requesting numerous prototypes is that manufacturers in China often produce really good quality the first time, but then it progressively goes downhill from there. They regularly set speed and high volume as priorities over quality. Keep the pressure on for producing good quality once you find your right partner.
Be Bold When Negotiating Payment Terms
The Chinese can be difficult to deal with since they can come across as intimidating with their hard-line attitudes. However, they also respect aggressiveness when doing business and this is a must when negotiating a partnership with them, especially when it comes to payment terms.
First of all, to show a manufacturer that you are serious about starting a venture, a 30-50 percent deposit is quite sufficient. When it comes to paying for shipments, do not pay more than 25-50 percent up front with the remaining 50-75 percent being paid upon delivery of the goods.
Keep Up Inspections
After receiving several good quality product shipments from your China partner, it can be easy to get lazy and stop closely inspecting further deliveries. You might assume that further shipments will contain the same quality and may see future inspections as a waste of time.
However, it must be stressed again that the Chinese have a tendency to slack on quality. Continue close inspections of incoming orders and make sure that your China partner doesn’t start cutting corners on the manufacturing of your products.