Monday, 31 May 2021

How To Negotiate A China Manufacturer Deal?

 SourceMany of us have the tendency to over analyze every single aspect of the business relationship between an international corporation and a Chinese manufacturer. Sometimes we even make exaggerated claims about our capacity to supply in China. We take advantage of all the opportunities China presents to develop our products and services. However, there is a certain downside associated with such over optimistic China Manufacturer.

You can not expect your Chinese manufacturer to duplicate your production processes precisely. The reality is that the whole process of manufacturing in China is a complex one. China has a fast paced development process and high investment in terms of infrastructure; this is the reason why there are hardly any concrete production facilities. China has plenty of factories but the quality standards and workloads vary from factory to factory. If you overstate your capabilities to the China factory, then you are overestimating yourself.
The right Chinese manufacturer will help you achieve your goal. It will make things much simpler for you. However, China is a huge country and there are literally hundreds of Chinese manufacturers out there. Finding the right Chinese manufacturer involves more than just finding a factory situated at the right place. You should know the right things to look for, the right strategies to employ and the right expectations to have from a Chinese manufacturer. Let us enumerate some of these aspects in brief.
If you have decided to set up your new product line in China, you will need to find suitable distributors or suppliers of raw materials, tools and machinery. The distributors and suppliers of your raw materials or the tools and machinery should be located close to your factory location so that you can easily visit them and arrange for easy shipments. The Chinese manufacturers will send you regular shipments of raw materials, tools and machinery on request.
While visiting the China manufacturing site, you should evaluate the whole production line and look into every aspect of the production run. Ask the workers to give you demonstrations and describe the different aspects of the job. Pay special attention to the quality control department, because that is where most of the defects occur. You should also inspect the quality control department of the china manufacturing company.
During the negotiation phase with the Chinese manufacturers, you must stick to your guns and be firm about the product specification. Don't allow the Chinese manufacturers to bargain over the specifications. Keep pushing for the highest specifications and don't get concessions. In case of some concession, the Chinese manufacturers might offer to change or reduce some aspects of the specifications. For instance, you might want the product specification to include certain parts, equipment or features that you don't require.
You will need to have an expert adviser to deal with the Chinese manufacturer during the negotiation phase. You can choose from a variety of software that is easily available today. Most of these softwares are based on Microsoft Office Suite and the Open Office productivity suite. The advantage of using such softwares is that they make the whole documentation process pretty simple and provide a lot of other useful features like automatic formatting and customizations as well. You can even enter your own images in the software if you want to and the software will automatically convert them to your specific format.
One thing that you must keep in mind at all times during the negotiation process is that you must not lose your temper with the Chinese manufacturers. If you become impatient with them, it would definitely make things difficult for you at the negotiation table. Remember that in business, patience is a virtue. Therefore, in order to win the contract, you should try to remain cool under pressure from the Chinese manufacturers.

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