This time I want to share a positive case.The customer is also from B2B platform,one of the upsides for the B2B platform is,new customer use it as endorsement for the company,which helped us get many new orders with decent amounts.
And the reason to share this article is, it’s not common for new customer to develop mould with a new supplier.
The story started around this year’s CNY time about January.The customer wanted to look for a SS stash jar with more height and add inside compartment under the lid,comparing with the sample he got on hand,quantity only 200pcs.And he sent this enquiry to some suppliers on the B2B platform and we were one of them.
After check with some factories,we found similar look jars,the answer was yes they can do that,also they made quotes based on the requirement and quantity,the price is about USD2.
The customer was satisfied with the result,so I asked him to send me original sample to double check cost.
The sample arrived after spring festival in February,if you knew Chinese spring festival well,you would know most Chinese factories come back after the lunar lantern holidays,which was end of February this year,so we explained this to the customer.
After that,we checked with factories who said yes.Factory 1 said they are very busy,no longer take new orders.
So we check with other options,factory 2 promised it was the same product they had bulk production for other customers,and sent us image as well,and made quote very soon.
While later when I suggested to send her sample from customer,also customer will need counter sample,she had long time discussion with her engineer without answering me.Finally she said her image was only sample from other customer,no bulk production yet.Also they had no way to make adjustment on the current product,I supposed they didn’t produce the similar product by themselves or didn’t have tooling in their workshop.
I also called factory 1 again,and he admitted they can not make adjustment on current product as well.
Had to mention,both of them have 10years+ manufacturing experience in SS material production,while their words just changed before and after.I can not blame them to waste my time,after all,every one is try to make a living.
Then we talked with factory 3,said they could do it,and they need study sample first,after they received the sample and studied for some time,they said no again.
There’s also factory 4,who made quotes based on his experience without verifying,when we wanted to make a counter sample,he didn’t know how to proceed.
Also there was factory 5,6, ……
More than one month passed,it entered April.To be frankly,I wanted to quit in the middle.It was like you could never find a solution for 200pcs quantity product,bit upset. But I thought the customer send sample to us,because he trusted us,so we could not fail his trust.
Then my colleague reminded me,in China,there usually had supply chain belt in certain area,some areas provide items with much cheaper price and lower quality,some areas provide similar item with much higher price and premium quality.It’s true,because we provide items to some premium brands in Europe,the quality they need is different from other countries’ peers,so is the difference in price.
We finally found the other supply chain belt for the SS stash jar,and the price is doubled about USD 5(I compared samples for both price,USD 5 is much thicker than USD 2 one),and MOQ is 3000pcs.I explained all the sourcing situation before April to the customer,I supposed the customer himself was also facing with similar situation,if he still talked to someone else.
The truth was,after several months time,my Chinese peers lose patience,and maybe they didn’t want to waste time looking for item only with 200pcs quantity.
Later the customer and I had some negotiations about the tooling cost,unit cost and MOQ for some rounds,back and forth.Finally we agreed to bear part of the tooling cost and MOQ for our new customer as support,and he agreed as well.
We confirmed tooling contract in beginning of May,and completed the tooling and send counter samples to the customer in beginning of July as agreed about 2 months.The 2nd sample had some slight revise,after customer received the first sample,and the customer was very satisfied with the 2nd sample.
In late August,I received 50% order deposit for the 2000pcs quantity order.
Also we begin to discuss another new product,and he plans to send the new sample.
Maybe you had similar sourcing experience as us before,and we’d like to share some tips about how to choose suitable suppliers in different case as below,from perspective of the customers.
- Factory usually focus and specialize in one material(for example wood,ceramic,plastic,metal etc.),for more complex project or product with other materials,they may need customer source accessories by themselves;While trading company can provide whole packagesolution as solution provider.
- If factory had some issues(for example can not make the new products,out of their capacity,no longer in production etc.),customer will have headache and need look for new suppliers;while trading company can help customer make speedy transfer and adjustment of production plan,with their mature supply chain available,to avoid the possible risk of order transfer.
- Usually factory has stable pricing system,for individual company customer with smaller order quantity,there’s not too much room for bargain;For trading company,maybe for one item,they have many repeated orders in long term,so they have more bargain power and decision-making power about MOQ,price etc.,comparing with only one company customer himself.
- Comparing with factory,usually trading company has more flexible operation regarding price,leadtime,way of payment,and more value added service,such as product design,goods inspection,goods storage,arrange door to door shipment etc.
- If the customer really has very big order quantity,it’s very natural to deal with factory directly,for example one of my customer,for one single product with huge quantity,he splited with 4 factories(since each factory has his own capacity),and they also has supply chain in other countries.While if you don’t have energy to handle all this,for example your company is better in marketing and sales,then maybe better find one source help you with supply chain, to save your time,energy and money.So when you need purchase more than 10 products at same time,you don’t need send 10 times of emails and have conference calls,to discuss details of products with each supplier,receive initial bulk and shipping samples from 10 different suppliers in China,arrange goods inspection,notice them one by one which address to send the goods,and arrange shipment together.
- Since some giant importers source same product both from their local channels and international channels,the price and service should be different.To sum up,we need consider many factors together when make the purchase.Margin of course is very important,the potential risk is also there.And if you find the right person,all other things will be more easier as well.
And welcome to share your comment with us:)
