Lowest Price In China
The lowest price in China relative to other suppliers is normally a big red flag.
There are many logical reasons for cheap prices relative to other quotes.
- The supplier is slapdash and has made a mistake. This happens a lot of the time and it can be frustrating.
- The factory tries to lure you in with a very low price, with a plan to hike the price later with extra hidden costs like packaging and material changes to meet your standard.
- The factory has misunderstood your request so they can not quote properly.
- The manufacturer is lying and will give you a different product on delivery compared to the sample.
Novice importers make the mistake of choosing the cheapest price all the time and it costs them dearly. They are lured in with nice photos and unrealistic promises so the manufacturer can secure the deposit without actually visiting the factory first.
Novice importers don’t question the price as they assume everything that comes from China is decent quality and everything is cheap. You always have to ask yourself, how can this factory produce this for less than everyone else? Most times your hunch is correct but occasionally there is a good opportunity as a factory is new and they need business but this type of order needs hands-on management,
Sometimes quotes do not include packaging, raw materials, delivery, GST, customs clearance and customizations to bring it Australian standard.
Pushing Factories Too Hard For The Lowest Price
Another common mistake is getting cheap quotes online and forcing the factory to take a cheaper price but this often leads to them doing everything to bring their overheads down at the cost of the quality produced. If you have no oversight and quality control then the importer will have a very costly problem on their hands as it is hard to send your products back once the order is completed.
Manufacturers have a number of ways to reduce overheads. They can subcontract production to poor quality factories, can change the materials slightly, or do things by hand instead of using a professional machine.
The only way to catch out the supplier is to carry out quality control in person and have them in a tight contract.
Why Is The Lowest Price A Problem?
- The lowest price normally means a less established manufacturer. They simply do not have the infrastructure, quality control, professional management and properly trained staff to manage the order to Australian standards.
- The workforce at the factory might not be permanent and they often hire unskilled people to complete the job.
- Their reputation is not as important as they are more interested in securing a quick buck rather than establishing a long-term business relationship.
- The equipment is sub standard to produce the quality desired. Premium equipment is normally only found in the larger more established factories. Producing by hand without using skilled workers is a very common mistake
What normally happens is that the importer continually rejects poor quality samples and the relationship sours very quickly and a lot of time and money is wasted early on.
At MyShipper we only use only the best factories and oversee the quality control of your order every step of the way.
For More Information Visit Australian Border Protection for all the importing rules and restrictions or contact us and we will simplify it all.