How do you compare Chinese Suppliers offering same price?

[Kiwi1234]

Hello all,

I was just wondering if anyone knows of any tips for finding the best supplier. There's a few suppliers, although mainly two that are able to sell a product for the same price. The only things that I know of to compare them is their prices, MOQs, shipping times, number of years as gold supplier on alibaba, transaction level, if they've had a factory inspection - anything I missed, if so please recommend some ideas!

Hopefully these ideas can help more than just myself in choosing the right suppliers!


Oli

 

[Carl76]

Past companies they have supplied to. Any ongoing contracts they may have with reputable companies.

 

[Kiwi1234]

Past companies they have supplied to. Any ongoing contracts they may have with reputable companies.

Yeah, references would certainly be a good place to start.

 

[fisicx]

You use a sourcing agent. They do all the research and negotiations for you.

Get in touch with Ron (a member here): @MyOfficeInChina

 

[Kiwi1234]

You use a sourcing agent. They do all the research and negotiations for you.

Get in touch with Ron (a member here): @MyOfficeInChina

hmm, I'm currently talking to a sourcing agent - although I'll take your advice and talk to Ron. Many thanks fisicx!

 

[MOIC]

There are many factors to take into account, some of which include the following:

1. Communication

2. Due diligence on supplier

3. Quality of sample

4. Speed of sample

5. Specifications of sample

6. Packaging

7. Price of sample and price of production.

8. Shipping cost

9. Certification (if required)

10. Payment method (Paypal to the company only for a sample)

The above is just a reference to comparing suppliers for sample purposes.

When it comes to ordering production, that's a whole new process and needs a whole set of criteria to follow.

There are no short cuts.

Good luck

 

[suitontherun]

Really depends on the size of the contract. For anything above £10k the company should be willing to meet you in China or preferably offer to have a representative meet you in the UK. For anything less, I agree that references and client list (with specific work/product supplied!) are an absolute must.

 

[deniser]

For me the number one issue is communication. I only use those who speak and write reasonably good English because we do have a lot of correspondence back and forth and I need them to 1. be responsive and 2. understand what I want.

 

[Kiwi1234]

For me the number one issue is communication. I only use those who speak and write reasonably good English because we do have a lot of correspondence back and forth and I need them to 1. be responsive and 2. understand what I want.

hmm, I have been considering this as an issue. If they don't speak english well enough for statements to be understood, it could be quite costly. Although alternatively if they seem like the best factory, respond well, good prices, good products as long as you clarify everything then maybe it is acceptable to not have great english.

 

[FreebieBoy34]

Hello all,

I was just wondering if anyone knows of any tips for finding the best supplier. There's a few suppliers, although mainly two that are able to sell a product for the same price. The only things that I know of to compare them is their prices, MOQs, shipping times, number of years as gold supplier on alibaba, transaction level, if they've had a factory inspection - anything I missed, if so please recommend some ideas!

Hopefully these ideas can help more than just myself in choosing the right suppliers!


Oli

Hi there! I've mentioned this in another thread, but I think it can be applied in your situation as well. If you are dealing with Chinese, don't afraid to haggle and ask for a cheaper price. This is totally accepted in their business culture. So if you're caught between 2 suppliers offering the same price, the best thing that you can do is to haggle with both of them and see which one will make the best offer...

 

[Kiwi1234]

Hi there! I've mentioned this in another thread, but I think it can be applied in your situation as well. If you are dealing with Chinese, don't afraid to haggle and ask for a cheaper price. This is totally accepted in their business culture. So if you're caught between 2 suppliers offering the same price, the best thing that you can do is to haggle with both of them and see which one will make the best offer...

Thank you! What do you think I should do once I've found the supplier I want? What do I say to the other suppliers, do I say that I have another supplier and I will talk to you soon if I'm still interested in your business, or should I say something else?

 

[FreebieBoy34]

Thank you! What do you think I should do once I've found the supplier I want? What do I say to the other suppliers, do I say that I have another supplier and I will talk to you soon if I'm still interested in your business, or should I say something else?

Good question. Just tell it to them straight, "Hey I really appreciate your offer, but another supplier gave me a more enticing offer which I think could benefit my business more..." Something like that. This is totally acceptable to them since most Chinese are business-minded. They know the tricks of the trade. And if the one you decline gave you an even better offer, then it's up to you to stick with your decision or consider the new deal he/she is proposing to you...

Hope this helps!

 

[Kiwi1234]

Good question. Just tell it to them straight, "Hey I really appreciate your offer, but another supplier gave me a more enticing offer which I think could benefit my business more..." Something like that. This is totally acceptable to them since most Chinese are business-minded. They know the tricks of the trade. And if the one you decline gave you an even better offer, then it's up to you to stick with your decision or consider the new deal he/she is proposing to you...

Hope this helps!

Thanks! Also wondering how you would make the response more open? Ensuring you're not telling them you're closing your doors on them. I assume you could say something like "Although if you're able to offer [insert] then I'd still be interested in your business."

Not sure how that would work, maybe it is wrong although I feel that they might feel neglected in the relationship when you close them down saying you're going with something else. I think some way of making sure you stay open to them, while giving them the information, is definitely something that could be useful! Not sure what you think about that!

 

[MBE1]

Unless you are looking at very large orders, it is much more important to find a decent reliable supplier with good comms etc, and something not mentioned as yet is regarding crediting for damaged or faulty goods, which you are highly likely to get in an import order. Many will offer a credit against future orders, but it is wise to find out in advance rather than arguing at a later date.

At the moment you have only made an inquiry, in the future as a returning client you are probably going to be taken more seriously. So rather than trying to screw a couple of cents more from your supplier better to start a decent relationship, which is highly regarded by the Chinese, they want decent straight dealing clients as you do in a supplier, but haggling to hard could ruin the relationship from the off IMO.

With imports, you should have plenty of cover to be competitive either way.

 

[MOIC]

100% agree with the above post.

 

[Maple Sourcing]

Do not forget to compare their quality level, ask them to send you a few samples, test them by yourself (or at a lab when necessary), then you may see significant difference, therefore, it becomes easy to judge which supplier you should work with.

 

[Kiwi1234]

Unless you are looking at very large orders, it is much more important to find a decent reliable supplier with good comms etc, and something not mentioned as yet is regarding crediting for damaged or faulty goods, which you are highly likely to get in an import order. Many will offer a credit against future orders, but it is wise to find out in advance rather than arguing at a later date.

At the moment you have only made an inquiry, in the future as a returning client you are probably going to be taken more seriously. So rather than trying to screw a couple of cents more from your supplier better to start a decent relationship, which is highly regarded by the Chinese, they want decent straight dealing clients as you do in a supplier, but haggling to hard could ruin the relationship from the off IMO.

With imports, you should have plenty of cover to be competitive either way.

Yeah, I didn't even negotiate the price in my recent samples. We discussed everything we needed to in just 2 days, bought and paid for samples. Not sure if I was too lenient there, although I don't think I was as I was building a relationship - as you say. Plus negotiating on samples makes you look tiny.

Thanks for the help MBE!

 

[Jeff Nev]

hmm, I have been considering this as an issue. If they don't speak english well enough for statements to be understood, it could be quite costly. Although alternatively if they seem like the best factory, respond well, good prices, good products as long as you clarify everything then maybe it is acceptable to not have great english.

I agree with you here Oli. Of course communication is vital to a successful business partnership, but I think we have become too reliant on overseas partners speaking English. You could end up ruling out better suppliers, because of the language barrier. I'm not suggesting you learn Chinese, but more and more SMEs are benefiting from business language training to strengthen their international relationships. There are lots of companies that offer this service these days. In a previous job we used a company called Cactus - http://www.cactuslanguagetraining.com/. Even just learning about business customs and cultural differences can help, as MBE1 has mentioned above.

Another thing I'd add is to think about how your payment will be protected (when you get past the sample stage and move in to production). You need to make sure you are comfortable with whatever payment agreement you set up so that you can get your money back in case there are quality or delivery disputes.

 

[Kiwi1234]

I agree with you here Oli. Of course communication is vital to a successful business partnership, but I think we have become too reliant on overseas partners speaking English. You could end up ruling out better suppliers, because of the language barrier. I'm not suggesting you learn Chinese, but more and more SMEs are benefiting from business language training to strengthen their international relationships. There are lots of companies that offer this service these days. In a previous job we used a company called Cactus - http://www.cactuslanguagetraining.com/. Even just learning about business customs and cultural differences can help, as MBE1 has mentioned above.

Another thing I'd add is to think about how your payment will be protected (when you get past the sample stage and move in to production). You need to make sure you are comfortable with whatever payment agreement you set up so that you can get your money back in case there are quality or delivery disputes.

Yeah, I've placed my first order and we've used aliexpress for security. Got the shipment, everything is fine so far which is great!

 

[Jeff Nev]

Good to hear! Best of luck with it all.

 

[Kiwi1234]

Good to hear! Best of luck with it all.

thank you!

 

[Kiwi1234]

Good to hear! Best of luck with it all.

Good to hear! Best of luck with it all.

Thank you Jeff, good luck to you too