Many importers and label owners think that contacting with manufactures directly can save their cost and they can get the products which they looking for with cheap price, they think buying directly from the factories will avoid paying commission to trading companies.
Is that true?
Let’s analyze the cost of contacting the factories directly as well as the benefits and problems fairly by answering a few questions to importers.
- Are you have expert sourcing and development team which can arrive at the best and cheapest manufactures in China and how much they cost of this team in case if you have.
- Do you have production following up team to follow the production process daily and fix the problems to achieve the required delivery time?
- Can you send your quality inspector to China to control the product quality and inspect the goods in line during the production as well as doing the pre and final inspection?
- Are you able to attend the loading of your products to the shipping port to be sure that is staffing correctly
To be honest, as an importer you can’t cover all the above points as well as you can’t compare the cost of the above points with the trading company commission.
Many of Chinese manufactures can provide cheaper prices because they are reducing their cost. As they have no internet website, no expert marketing, and merchandising team speaks good English and they are using export agents to ship out their products. That is why they can provide good prices but you can’t find them easily even if you have expert expensive sourcing team.
The trading company is doing the production following up on your behalf, it’s easy to communicate the factory production people. Help to solve the production process problems and will work to achieve the delivery date.
It’s hard and costly for the importer to assign quality inspectors for inline, pre and a final inspection which can be provided by the trading company as well as monitoring the goods loading to the shipping port and in most of the cases until the buyer warehouse not only to the shipping port.
There are many services can be provided by the trading companies and buying offices, not only sourcing but produce branding and development as well. It’s simply complete working team serving you.