Buying in from China

[Jamessss]

Hi,

I currently sell an electrical product that I buy from a UK distributor for 7.85 UKP + VAT. I've contacted the manufacturer in China and they will sell direct to me by the 1000 for 5.63 UKP each. Is it worth it ?

I guess I'll have to pay import duty (but I don't know how much that will be) and VAT that I'll claim back.

We sell about 100 a month.

I think the price from China is a too high as I can buy a similar item that isn't *quite* as good for 4.50 UKP but I don't really want that one.

Could anyone tell me how much duty I might pay and how much hassle it would be to import ?

Many Thanks,

James

 

[sysops]

I currently sell an electrical product that I buy from a UK distributor for 7.85 UKP + VAT. I've contacted the manufacturer in China and they will sell direct to me by the 1000 for 5.63 UKP each. Is it worth it ?

Presumably that's FOB? If so, don't even think about it - nowhere near worth it at that saving.

 

[Mister B]

You can find out the duty rate here, assuming that you know what the commodity rate is.

Can you just confirm though on what terms you are buying the goods? It sounds to me like you are paying well over the odds. I would also have expected you to have been quoted a price in dollars exluding freight duty and insurance. The only time that I have ever paid in GBP was when the goods were DDP. (Delivered duty paid.)

Mister B

 

[Online Trader]

Looking at the numbers that you have given, I would think that your distributors landed cost is in the region of £4.00 - £4.50, so the FOB price that you have been quoted is way too high, as with any manufacturer in China, negotiate, however I would imagine that your distributor is bringing in significant volume and will therefore get a much better price than you.
Good luck with your negotiations.

 

[Paul Kelly ICHYB]

James,

that price isnt good enough, however, it does depend on the product!

If it is an accessory, definitely not. If it is a kettle, then maybe it's in the ball park!

Can you let us know what it is?

Paul

 

[Wyse Assist]

If you want to buy product from China I strongly recommend you attend one of the many fairs to talk directly with the manufacturers.

 

[HES]

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[Jamessss]

Thanks for the feedback.

The price was 10 USD - I just converted it to UKP to compare.

I read a bit about it and read a warning that China will often start with a price just a bit cheaper than UK suppliers in the hope that we take it.

I'm not sure I'm selling the quantity to make it worth while. I'll probably stick with the UK supplier and build up the volume I sell before trying again - and I'll be in a better position to order larger quantities.

Many Thanks,

James

 

[Paul Kelly ICHYB]

James,

weigh up if a better price will just give you more profit or a llow you to be more competative and sell greater volumes, them make a decision from that.

 

[doggiestylestore]

You will be charged VAT when they are processed by cutoms, plus import duty so doesn't sound like a great saving, I'd stick with your uk supplier as importing can be a nightmare.

 

[swisslogistics]

I could possibly help with this, drop me a pm and let me know what it is and how soon you would look to buy if you got the price where you wanted it, I am due back out to Hong Kong and China within a couple of weeks to load up for xmas so I can possibly sort out your load too.

Best Regards

Khalid

 

[Jamessss]

Thanks for the offer SwissLogistics but it's the UK supplier for me at the moment

James

 

[DesignsOnline]

It sounds like the manufacturers in China are trying it on with you. I suggest you try haggling to see how much improvement you can get in the price...

 

[konaxis]

If you want to buy product from China I strongly recommend you attend one of the many fairs to talk directly with the manufacturers.

For all electrical appliances one of the biggest fairs is held in October every year in China, actually Hong kong with fall and autumn edition.

HONG KONG ELECTRONICS FAIR '2008
from 2008-10-13 to 2008-10-16


Good luck to you and feel free to contact me if i can be of further help,

Mei Li

 

[Skynaic]

Hi James,

I've worked closely with an IT infrastructure factory in Hong Kong. And work acquainted me with several other manufacturers of electronics and components, lighting and machinery as well.

I myself specialize in purchasing. Let me know what you want and I could easily source for it. Usually I get everything sorted out with the manufactures. If you first need samples or stock of any bulk, it can be arranged within 1-3 weeks- (quote me the specs) and I will get field agents in China to run it through.

We usually target 3-7 suppliers (depending on the familiarity we have with items). We always check for CE and/or any other proof of manufacture a client requires. We are careful to choose manufacturers based on their reliability and price.

I would be happy to run a preliminary inquiry for what you have in mind and have my partner do an estimation as to price.

Right now I am working on other shipments but my partner can handle your inquiry.

Regards,
Skynaic

 

[Online Trader]

absolutely,the quotation from china must come from some trading corporation. if you can try to send inquiry to a factory,the results will be opposite.

Sorry but i disagree with that, the days of the trading corporation (middle man) are numbered, the good manufacturers are emplying very good English speaking commercial mined people and they are more than able to handle the deals directly

 

[Mister B]

Sorry but i disagree with that, the days of the trading corporation (middle man) are numbered, the good manufacturers are emplying very good English speaking commercial mined people and they are more than able to handle the deals directly

I agree. In days gone by, I used to deal with a UK agent who in turn had an agent in HK who dealt with the factory. That effectively put four sets of mouths in the foodchain. Too many in this day and age! I find that with modern methods of communication and standards of English, the better factories allow you to trade straight from factory to market

Mister B

 

[sinogan]

I have a problem very similar to you with with china and my recomendation is to be aware cause some chinese just try to swindle you

 

[Mister B]

I have a problem very similar to you with with china and my recomendation is to be aware cause some chinese just try to swindle you

No different to anywhere else in the world my friend Plenty of sharks in the UK never mind in China

Mister B

 

[taltul]

hi,

why don't you contact one of the UK companies that deal with sourcing of products from China? i can recommend a company called Helios Developments, based in London

 

[iammrburns]

James

another option is to use an agent/trading company in china to make an enquiry on your behalf. I have several contacts who I use regularly to source products and they have prooved very valuable in acheiving price reductions that I would not have managed to negotiate by going direct. generally they expect 5%.

I'd be happy to put you in touch with a couple of them if you would like to investigate that option. IT won't cost you anything unless you actually make an order.

Richard