Chinese Factories Can't Give Me Exact Price.

Discussion in 'International Business' started by mrka, Jun 17, 2019.

  1. mrka

    mrka UKBF Contributor Free Member

    98 3
    My business requires that I give my customers a real time price on my website..

    I am trying to get various factories in China to give me exact price of various items..

    I only offer custom items to my customers spec.. but I still need to know rough prices.. As I am in profit..

    If the factory can't give me full prices would this mean they are a trading company?

    For example I need to know price of a given item from 10mm to 14mm, 15mm to 25mm etc...

    I am getting really tired now as dealing with some of these factories is like dealing with children.
     
    Posted: Jun 17, 2019 By: mrka Member since: Jul 11, 2013
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    14,874 1,622
    Can the factories give you exchange rate? Can they give you an estimate?

    Yes sometimes the places making the stuff cannot give you an exact price until you do an order. And they know what their costs are.
     
    Posted: Jun 17, 2019 By: Mr D Member since: Feb 12, 2017
    #2
  3. mrka

    mrka UKBF Contributor Free Member

    98 3
    I can work out the exchange rate, it is just US DOLLARS TO POUNDS, easy.. but a few of my competitors (the smart ones) have a live price fature, and it's a strong differentiator. Maybe they have all just guessed roughly from previosu quotes, I don't know... Won't know... But I have tried to say OK, here is a lisdt of 5 products in a possible 10 to 15 different size variations, and they say it's too much work overload for no work...

    I tell them I plan to bring 500 unique jobs a month to them, and they can't see the value in that!
     
    Posted: Jun 17, 2019 By: mrka Member since: Jul 11, 2013
    #3
  4. NickGrogan

    NickGrogan UKBF Ace Free Member

    1,884 419
    Anyone can "plan" to bring 500 jobs. If your competitors "are" bringing in 500 jobs, they'll get better service.
     
    Posted: Jun 17, 2019 By: NickGrogan Member since: Nov 15, 2012
    #4
  5. mrka

    mrka UKBF Contributor Free Member

    98 3
    Well all we can do is explain our intentions, it's better that havng no intentions isn't it :)

    I just wish it was as easy as speaking to a man in the pub! (actually depends how drink he is).
     
    Posted: Jun 17, 2019 By: mrka Member since: Jul 11, 2013
    #5
  6. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    10,318 2,094
    A basic question, why have you not been to China and talked face to face and explain fully what you want, maybe get some help from the expert middle men who have agency's in China to know the area and also do QC checks "office in China" would be a good start on this forum
     
    Posted: Jun 17, 2019 By: Chris Ashdown Member since: Dec 7, 2003
    #6
  7. NickGrogan

    NickGrogan UKBF Ace Free Member

    1,884 419
    It depends on how serious they think you are.

    @Chris Ashdown post is good advice.
     
    Posted: Jun 17, 2019 By: NickGrogan Member since: Nov 15, 2012
    #7
  8. mrka

    mrka UKBF Contributor Free Member

    98 3
    Good point, but i think we are in a way better position to do international business than we were in the 1980s, The internet has revolutionised this (as you know)... I did consider going to China, but you think ok, £500 flight, £800 in hotel costs for 2 weeks, £200 on food and eating out, loss of earnings beng away and more..

    But I am trying to go down the 1000 emails route on Ali.
     
    Posted: Jun 17, 2019 By: mrka Member since: Jul 11, 2013
    #8
  9. NickGrogan

    NickGrogan UKBF Ace Free Member

    1,884 419
    Which is a valid point, but also gives an idea of how serious they'll take your requests.

    No idea what you're buying, who much is 500 jobs per month worth?
     
    Posted: Jun 17, 2019 By: NickGrogan Member since: Nov 15, 2012
    #9
  10. Mr D

    Mr D UKBF Legend Free Member

    14,874 1,622
    500 unique jobs is not necessarily good.
    Small quantities?
     
    Posted: Jun 17, 2019 By: Mr D Member since: Feb 12, 2017
    #10
  11. mrka

    mrka UKBF Contributor Free Member

    98 3
    If we work to the lowest possible profit margin on most jobs then
    This is just the industry I am in and how it works.
     
    Posted: Jun 17, 2019 By: mrka Member since: Jul 11, 2013
    #11
  12. Mr D

    Mr D UKBF Legend Free Member

    14,874 1,622
    So use an agent who can verify a contact is at a factory or can negotiate on your behalf.
     
    Posted: Jun 17, 2019 By: Mr D Member since: Feb 12, 2017
    #12
  13. Mr D

    Mr D UKBF Legend Free Member

    14,874 1,622
    It may not be how the factory works.

    I wanted some items made a couple of years back, a thousand of each design - plenty of production facilities could not quote on it, a few had quotes that were all over the place.
     
    Posted: Jun 17, 2019 By: Mr D Member since: Feb 12, 2017
    #13
  14. pentel

    pentel UKBF Regular Free Member

    406 66
    What sort of items are we talking about here?

    A lot of people think that only China makes thins now, but there is still quite a lot of manufacturing in the UK and surrounding countries, especially for custom items which is what you are indicating you need.
     
    Posted: Jun 17, 2019 By: pentel Member since: Mar 12, 2011
    #14
  15. NickGrogan

    NickGrogan UKBF Ace Free Member

    1,884 419
    The factories are not worried about your profit margins, they care about theirs.

    If it's 500 widgets, that you want to pay £1 each for then you're not going to get far.

    If it's 500 widgets, that you want to pay £10,000 each for then you should be getting a better service and need to visit or get a good agent.
     
    Posted: Jun 17, 2019 By: NickGrogan Member since: Nov 15, 2012
    #15
  16. Mr D

    Mr D UKBF Legend Free Member

    14,874 1,622
    Must admit its a new concept, working to the lowest possible profit margin on most jobs.

    Can get why he thinks he can get 500 jobs now.

    Does not appear to impress the supplier though.
     
    Posted: Jun 17, 2019 By: Mr D Member since: Feb 12, 2017
    #16
  17. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Big Shot Full Member

    4,216 852
    There are MANY factors that you need to calculate your 'live' price, some will be the following:

    1. Your supplier may offer different prices based on different quantities.

    2. The exchange rate fluctuation. (This can be minimal, but sometimes can be as much as 3%).

    3. Prices offered by your supplier will generally have a 'validation date' (i.e. for 14 days from date of quotation), as their component costs are likely to fluctuate.

    4. Shipping costs will vary on the product being sent, the quantity, the weight & dimensions, as well as time of year.

    If you total all the above, there maybe a 10% tolerance (maybe even more) from 'cheapest' to 'dearest'.

    Unless you can allow for this tolerance in your quoted price to your customers, I suggest you err on the side of caution and add 10% to your cost to cover the above potential tolerance.
     
    Posted: Jun 17, 2019 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #17
  18. fisicx

    fisicx It's Major Clanger! Staff Member

    30,356 8,923
    Is this 500 separate orders?
    If so is each order for a single item or 1000s of each?
    Or is it just 500 of one item each month?
    This is just confusing. 5 products each with 15 different sizes is 45 different products. That's 45 different production lines need setting up. How does this relate to your 500 separate order?
     
    Posted: Jun 18, 2019 By: fisicx Member since: Sep 12, 2006
    #18
  19. Maple Sourcing

    Maple Sourcing UKBF Regular Full Member

    349 75
    I guess there are too many items each with tiny QTY, and custom design. In this case, the factories do not think worth their time.

    Try to find an expert in that industry who knows good contacts, that guy may offer some suggestions.
     
    Posted: Jun 19, 2019 By: Maple Sourcing Member since: Oct 8, 2012
    #19
  20. CHUKTC

    CHUKTC UKBF Contributor Free Member

    87 13
    If you know exactly what you want any decent factory in China will be able to give you a price. However if the quantity is small and or of low value they may decline to do so. Successful factories will be very busy dealing with hundreds of queries a month and they will tend to deal with the most profitable ones first. The exception will be high value items such as large pieces of machinery where small quantities (or even single units) can be purchased.
    The first question we always ask our customers is what quantity do you want. We then only approach suppliers who deal in the quantities the customer requires - the result we almost always get a quote for our customers.
     
    Posted: Jun 24, 2019 By: CHUKTC Member since: Jan 2, 2019
    #20