Sourcing agents always can offer a better price than the one on Alibaba when quoting in China. But, lots of importers may not even be aware of it and believe they can get lower prices from real manufacturers if they quote in person. Off course, he will succeed if he can reading in Chinese. However, most of the people who want to import from China can not reading in Chinese. In this article, we will introduce why China sourcing partners can provide lower price than it offered by the suppliers discovered on B2B sites, Google, and trade shows.
We know that you have quoted with lots of suppliers on Alibaba or made in China website before looking at other sources, but can’t receive the satisfying price. We understand customer need a competitive price with good quality for his or her products made in China.
Here is a case, a US customer contacted us and hoped us can develop a precision machining supplier for him in China. Because he have waited a lot of time on Alibaba and found it was hard to communicate with manufacturers discovered on Alibaba.
1, China Sourcing Agents have Different Sources in China.
Most of small business owners who are come from USA and UK source products via Alibaba because it is very convenient and high cost to visit China in person. Open the website and purchase the product he needs, those are the common steps to purchase from China. It is without any obstacles if you know how to use the mouse.
Alibaba sourcing is one of the methods to import from China and well know to all over the world. In order to find a reliable manufacturer in China, the sources on Alibaba is far from enough. Alibaba international services is not free for Chinese supplier. The Chinese supplier needs to pay at less 4500 U.S dollar as basic service charge per year if he want to list his company information on Alibaba website. Of course, value-added services are not included. As far as we know, a company need to pay at less $15,000 as services fees on Alibaba if you want to get a good position on their website. Here is the Alibaba services package charge:
- Basic: CNY29,800 per year.
- 1st page: Start from CNY80,000 per year(You can spend less than it, but it is useless if you don’t want to spend money).
So, it is high running cost for a supplier who uses Alibaba international services. As the proverb goes, the wool is come from the live sheep. However, an agency can source from the supplier who don’t use these services and can provide a lower price. For example, DiscoverSourcing.com can find real manufacturers via friends, current suppliers, trade show, Google, Baidu, SoSo, 1688, trade show catalogs, supplier data package, etc.
2, Your Purchasing Partners are Good at Price Negotiation.
An outstanding purchasing company needs to handle lots of quoting every day. And they have rich experiences on cost analysis and price negotiation. They know the real cost in China and can identify whether the price is reasonable cost or outrageous price.
For example, a purchasing agency request his supplier to provide the details of quotation if it is a manufacturing product. Here is a template for plastic injection molding tooling quoted in China. (This template is available for quoting with die casting alloys or casting manufacturer in China, too.)
- The material cost for tooling.
- processing cost.
- Sample testing Cost.
- Cost for Outsourcing parts.
- Venue & machine cost
- Labor cost.
- Management cost.
- Delivery and packing cost.
A reliable manufacturer in China should can provide a quotation like that. We don’t think a quotation sheet with the price only is responsible. You need a reference when adjusting the price in the further, such as the material cost was changed. And it is also very useful when developing a backup supplier.
3, Agents can Get the Domestic Price.
For most of the manufacturers in China, price offered to Chinese company is always lower than a price for overseas company due to there are a lot of uncertain factors. Such as, the supplier nee to add some percentage for their sales and can not find a low-cost shipping solutions. But, Chinese buying agents focus on international business and know who can provide a lower shipping cost and customs services charge. So, a price for foreign customer is higher than for native customer.
So, purchase from real manufacturer directly is not always economic. The final cost depends on many reasons, such as the quantity, quality control requirements, and who is your supplier. But be assured: a Chinese sourcing partner can offer you a better and lower price.