Make money online + made in China (4) – Discount of discount

In the previous posts, I have mentioned some important facts about dealing with “Made in China” manufactures in China. I have also talked about how to Chinese manufactures behave. Now, you need to know how the discount pricing works in the business. This will help you understand what to do to get you the best deal.

In the previous post “Make money online + made in China (3) – Left hand and right hand“, I discussed that dealing with China manufactures sometimes requires using your two hands strategy. It doesn’t means that you always have to bribe to get your deal going. It is just a mean to speed or smooth you business relationship with China manufactures. In my post “Make money online + made in China (2) – Show me the money“, I also talked about how to show your potential business partners that you have the buying power. So they will be more interested in doing business with you. I have also talked about how Chinese lie to survive in this business world in post “Make money online + made in China – Lie to survive.”

Now. You have some basic understanding about how Chinese business operated and how they act when you are showing them your business intention. Actual buying process is also an important piece, when dealing with Chinese manufactures or wholesaler.

In most of case, you are busying goods from manufactures or wholesales directly either online or offline. Many companies have their showroom or wholesale shop in a central location. So you can find many competitive shops lined up in the same building. Now, you have go over hundreds shops and find the products you really like. You will always find the similar goods from different shops. In many cases, the company A claims they are the original manufactures, who made those products. They also claim that many other companies such as B, C, and D are just buying from them. So you should buy from company A to get the best deal. Remember the lie? Unless they show you their manufacture warehouse or production center, they usually don’t produce product themselves.

When dealing with price. You can always bargain. Regardless how they told you that their retail price and wholesale price are. You can always get some discount if you have enough buying power. In many case, the really good price (best price) you can get is the 50% off the 20% wholesale price. For example, the Bluetooth headset cost $300 for retail. On the cover of the package, it says the wholesale price is $100. Your best price should close to 0.5 * 0.2 * $100 = $10.00. Am I crazy? NO! In many cases, they raise the wholesale price and hoping to rip you off, if you don’t know how to bargain.

It’s case by case. You need to use your judgment based on the actually value of the products and how much you are willing to pay for the products in large quantity. You simply ask them what the minimum quantity is or amount in dollar in order to get the best discount. They you use that price to bargain for the quantity you want to purchase.

My true suggestion on bargain price is to find a fluent Chinese spoken people to translate for you, if you don’t speak Chinese well. Especially, find the local people. In many case, they give local retailer cheaper price.