Make money online + made in China (4) - Discount of discount
Made in China, Opportunity, Business September 25th, 2007In 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.
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8 Responses to “Make money online + made in China (4) - Discount of discount”
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September 25th, 2007 at 8:13 pm
Thanks a lot for this blog post. I will surely use this information to help me in future with my business. Keep up the great work!
September 26th, 2007 at 7:07 am
@Donald:
You are welcome. I hope you enjoy your reading.
September 27th, 2007 at 7:41 am
Hey terence
your blog is cool
did you find any product that would be good business here in US
Let me know about your adventure
September 29th, 2007 at 10:49 pm
@Gov:
Thanks! Yes. I actually found some cool stuff. I will be working on making those available on the internet in few months. Beside what I have found, there are many electronic gifts that will be very useful for man. For example, a portable small beer coolers.
October 3rd, 2007 at 6:12 pm
I passed through China at the end of last year and whilst there I thought I would take a look around and see what could be done business wise or try to figure out how things would go when doing business with China. It was an eye opener. A little difficult for be because of the language barrier (I will be starting a course soon). But, the impression I got was that you have to be careful about who you are dealing with because of the number of people out there who seemed to want to cheat you. There were some that I came across that seemed genuine.
October 3rd, 2007 at 6:22 pm
@Gerri:
You are correct. It’s very important to know who to talk to. In China, many staff try to be the decision maker and usually make wrong decision or give you the wrong impression. They may not intend to cheat on you, but they try to get you sign the deal. When you talk to the boss, you get a different story or deal. So you need to be very careful when dealing with people in China.
I have been cheated on, but I caught it before I set the deal.
October 11th, 2007 at 2:06 pm
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December 13th, 2007 at 6:16 am
Totally with you gerri, but I have found that the “Made in China” label may mean it’s cheaper, but it is usually not a discount and or a bargain. It’s true that the china products are flooding the market like anything. A cheap product can get you in the market for only once, but to get the grip of it you got to give the quality. In our country, a made in China thing is labeled to be cheap and of low quality. The same impression was carried by Japanese products once. But they have come up. And even China would need to follow the same footsteps. Indeed some of the Chinese stuff like toothpaste made with a poisonous chemical and toys coated with the lead based paint are not just an example of inferior goods but they have further downgraded the reputation of MADE IN CHINA label.