Haggling in China

By Peter Braden

Hopefully during your business trip to China you will have some free time for shopping. Except in the high-end department stores, this involves haggling. In Chinese, this is called "chopping prices" or "talking about prices". It's an art form completely unlike the orderly system of the West. It does have a sort of etiquette, however. Even if you speak no Chinese, you can avoid being badly screwed by playing smart.

Don't feel embarrassed. In China, everything is negotiable. People talk endlessly about their salaries, their rent, etc. as a way of establishing a framework for what is reasonable. In other words, there is great flexibility in everything. You are a fool if you fail to take advantage of it.

Keep on smiling. Shouting belligerently will accomplish nothing. The tone should be almost like teasing, since both you and the merchant are both gently pushing the limits. This is the first and last time you two will interact, so there's no reason to make a scene.

Be ruthless. Start at about 1/3, and generally don't exceed half of the starting price. Don't let the merchant manipulate you with a tale of a starving, gifted daughter who needs surgery on a brain tumor. If they are losing money on the sale, they will not sell. Period.

Shop around. In a given area, most merchants will have more or less the same prices. Establish a baseline by comparing.

Don't let them pressure you into buying more than you want. Just get what you want, for a price you think is reasonable, and be done.

Remember, even old China hands get screwed occasionally. Just don't get too caught up in the moment, and you'll do fine.

Peter Braden, Marketing Specialist, http://www.MyeFaxChina.com
My company provides internet fax numbers for business travelers in China. An internet fax number can be a big help in setting up a China branch office. Faxing is still extremely widespread in China, and internet fax is a good way for Western business people to deal with the difference in technology levels.

Your Guide to Importing From China

By Arthur Stoller

If you have an established source of sales that you are already selling into the market, and have a large volume, you might be thinking of trying to outsource your product.

China offers a vast array of products and to track something down that is suitable, you are going to need someone who knows the country well.He or she can advise you very quickly if you are likely to find a company where you could place your order and thereby increase your margins.

Here are some of the things that you will need to establish before working with an import agent:

1. Full product details with drawings / graphics

2. Packing & presentation details

3. Branding requirements

4. Certifications & Safety standards required

5. Date product is required

6. Quantities (min order quantities apply in most cases)
Considering the requirements, qualified suppliers will be selected by your agent and details sent to those who look the best prospect. From the resulting replies three are invited to quote.

A good agent will discuss quotes with the manufacturers, confirm their experience in UK / European markets and check their production capabilities.Your personal visit to China could be carried out to inspect the factory personnel, the manufacturing process and quality control systems. This process is often backed up by a team in Shanghai who should cover the whole operation.

1. Prepare a detailed report on all visits.

2. Quotations include manufacturing costs, branding, artwork and presentation of your product, method and cost of shipment, all duty and port dues plus haulage from port to your warehouse
3. Orders are normally quoted c.i.f. destination port. Estimated time of delivery is also given at this time and confirmed as more information becomes available about your consignment.

Choosing the right manufacturer, ensuring quality and providing an on-time delivery are all crucial business processes.Controlling production quality is achieved through scheduled inspections of all factory processes with final quality inspection and packing checks completed under the direction of your agent, before products leave the factory. Personal visits to factories are recommended in order for you to become more familiar with the overall process.
Appropriate packaging will have been agreed between all parties to ensure protection of goods with the details now being submitted to the shipping agents.

Shipping options will have been confirmed with you with all appropriate documents being completed. Customs clearance is completed and Duty plus port dues are often paid by your agent

* Work with a wide network of suppliers from numerous market sectors in China, and provide products that meet your requirements and monitor progress to ensure on-time delivery.

Sourcing your product in ChinaWhen you contact a few agents you will find sourcing requests are responded to fairly quickly. Normally an agent will have an extensive network of manufacturers, and can either source an existing product or customize to your specification, including bespoke items. They will often have a Chinese speaking team, both in the UK and in China to check requirements with potential suppliers and provide the information required to obtain costs.

You should expect a detailed written quote submitted for your approval with all costs, delivered to your warehouse. Where significant design work is involved, you can negotiate a separate fee.
Arthur Stoller operates his import agency from China to the UK and further details of his operation of importing from china can be viewed here