SourceThe relationships between Chinese manufacturers and exporters are sometimes contentious. There have been times when the two sides have come to a standstill. In one instance, this standstill has lasted for six months. At this point, it appears that there may be no way for China manufacturer to conduct proper negotiations with its overseas counterpart to sell its products. In this instance, it is time for companies in China to engage in international business negotiation with their foreign China Manufacturer.
The disputes usually occur when China manufacturer demands too high price or too low price for its products. At times, it also demands excessive processing charges or unwanted paperwork and licensing conditions. When the other party refuses to adhere to these demands, the factory opts to close the contract. In a nutshell, what these factories want is to make more money, but at a higher cost, by selling the products directly to the end users instead of having it processed in China.
The second scenario is a little less dramatic, but it's just as upsetting. When the other party objects to the Chinese manufacturer's request to waive intellectual property rights or to create new product specs, the Chinese manufacturer counters that it is not willing to do these things. Of course, he adds, if the products are badly made, nobody will buy them anyway. The only way to make money is to make good products that people will buy from him.
In the first scenario, the Chinese manufacturer contacts an exporter of goods who can provide him easy access to the market. He knows that this person has easy access to buyers from Europe, America, and Japan. What he doesn't know is that the supplier needs to have these products manufactured in China. The easy access is provided in the form of factory visits. China manufacturer arranges for the factory to visit his supplier's plant and inspect the quality of its products and services.
In both scenarios, the Chinese manufacturer outsourcing companies are happy to satisfy their European, American, and Japanese clients. However, the European and Japanese suppliers are not necessarily 100% happy with the products. They feel that the raw materials and the way they are packaged (in terms of quality, size, and design) are not up to their standards. They don't like the way the boxes are opened and the finished goods are handled and packed by the Chinese manufacturer. The Chinese manufacturers do not have a problem with this; they feel the supply situation is such that their customers' demands are met.
In all three scenarios, it is impossible for the European, American, and Japanese companies to make things right if the Chinese manufacturers are not providing quality work. That's why it's important that you find a reliable and reputable factory. To make things easier, you should seek help from a China Manufacturer sourcing company. They will be able to find you the perfect factory to source your products to. They will also be able to handle all the documentation that comes with the factory contract so you can focus on getting your job done without having to worry about anything else.
When you find a good China Manufacturer, you will need to find out what kind of work the manufacturer is capable of doing. You need to know the kind of technology that they use to make things, and what kind of documentation they require to work together. They will also tell you what their manufacturing and labeling requirements are so you know what kind of product specs you need to work with. You need to make sure that you are compliant with any licensing or labeling requirements that the Chinese manufacturer requires. If you are not, then you will have problems in the future with them or the Chinese manufacturer.
Finally, you'll have to determine what the final price should be. Sometimes, Chinese manufacturers will put a bit more into the final price than what the contract calls for. This is because they want to be sure that they are getting a decent price for their goods so they don't have to worry about paying the excess, but this can also be a trap if you are not adequately negotiating with them. The key is to be up front and honest throughout the whole process of negotiation and selection in order to get the best price and product specification from these Chinese manufacturers.
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