Used Equipment

How to Compete With Wal-Mart

All you need to know about buying and importing products from China.

 

Are you tired of competing with Wal-Mart? Than get on board and buy where they buy, China. You might think it’s un-American to buy from abroad, but letting that big corporation gobble up all the profits and business can cause your small company to go under fast, you have to be able to compete. If Wal-Mart is buying that widget in China at a quarter of the price your paying for it here, you can’t stay in business, you’ll close your doors and lay off all your “American” employees. How is that being “American”? Until the US Government levels the playing field between the little guy and the giants (fat chance), the little guys will have to use the same tactics as the giants.

 

Step 1. Locate your supplier:

 

This is the easiest part, you know your product and you know how much to pay for it. Use the Internet and search for the best China supplier for your product, don’t use third parties, go directly to the manufactures. If a China manufacture wants to sell to the U.S. they will have a way for you to contact them directly. I have a Chinese friend that helped me communicate with them after my initial contact. This was not necessary, but it was helpful. You’d be surprised how helpful your local Chinese Business Owners or neighbor can be. Introduce yourself and tell them what you’re trying to do, mention that you may need an interrupter occasionally.

 

Step 2. Negotiations:

 

Product price, shipping cost, payments and delivery, (This is the way I did it:).

 

1. After my initial email contact, I sent my prospective supplier samples of my product.

 

2. I soon received a quote back, in English, on the manufacturing cost plus shipping. (At this stage you must provide them with a shipping destination see step 3)

 

3. I liked the pricing, and why not, China’s prices are dirt-cheap.

 

4. I worked out the terms, size of initial order, payment method and ordered samples. We agreed to 50% deposit by wire transfer and 50% balance after delivery and inspection. At this stage I only ordered the minimum, to see how everything would go, I wasn’t going to risk too much money at first, only what I could afford to lose, But remember that there has to be a certain amount of trust at this stage. I was providing the initial risk with the 50% deposit and China was assuming the remaining risk, that I will accept the order and send the Balance. Also bear in mind I was not charged a setup fee or a tooling fee for these products, as is customary with U.S. manufactures, this saved me thousands right off the bat.

 

5. China sent out the Samples, prior to the first payment; this allowed me to inspect the quality of their products before ordering. The quality was great; I had them make a few revisions, at no charge to me, submitted my order and wired my deposit. Some banks will charge more and take longer, to transmit funds overseas, than others; you will bear this expense, check with your bank.

 

Step 3 US Customs:

 

 1. I contacted UPS and setup an Importers Account, this is fairly easy and you can use any number of providers, UPS, FedEx, DHL or a dockside warehouse. Be prepared to provide UPS or other providers with the following info; Your S.S. number, a copy of your Drivers License, your company name and address.

 

2. On my first order I used UPS Air Cargo, the order arrived in Kentucky, passed customs there and then was forwarded to Boise Air Cargo, that’s where I picked it up. UPS charged me for the Importers Setup fee, US Customs fees, Handling fees and Freight Forwarding fees (approx. $695.00). Be prepared to add these fees to the cost of your order, your China supplier should have paid all other shipping charges.

 

3. Very-Very Important; Make sure your China supplier provides you with a Bill of Lading properly filled out with product description, weights, package size, and customs designation numbers and a Commercial Invoice also properly filled out. If you can’t provide these documents to Customs, you will not get your shipment through.

 

4. My second order, from China was a shipment of Magnetic Toolbox Labels, they were to heavy for Air Cargo, so I shipped the order by sea. This worked the same as before but instead of arriving in Kentucky, this time my shipment arrived at the Port of Portland. The order also was handled by UPS and was freight forwarded to me, as before. The overall handling cost was a little higher but still very similar to the first shipment. Shipping time was one month.

 

5. Lately products from China, like Toys, have been subjected to special “No Lead” restrictions. Check with Customs for all the import rules relating to your product.

 

Step 4 Quality:

 

 1. Make sure you thoroughly check your order when it arrives, look through everything, make sure it’s what you expected. If there’s any major product rejects notify supplier right away, minor errors can be noted, adjustments can be made at the time of the next order.

 

2. If your anything like me your first focus is on QUALITY, I won’t put my name on a product that doesn’t do what its advertised to do. At the time of bidding, I stressed my quality standards to my prospective manufacture. I accepted their first “asking price bid” with the stipulation that I’ll always get the best product they can produce “no shortcuts”. This has worked out well for me, I have been marketing my China products on Ebay for 5 straight years and I have had a running feedback rating of 99.9% to 100% positive with over 50,000 label products sold there. Check out my outstanding feedback, it’s one of the best ratings on Ebay; Ebay Feedback

 

3. Ask any Ebayer, it takes a lot of work and a great product line, to maintain a 100% feedback score for that long of time, whether your product is made in the USA or China.

 

Step 5 Communications:

 

1. Always treat your suppliers with respect and courtesy, they will return that two-fold. My supplier has invited me to China, to visit their factory and to stay in their home. They always send me holiday greetings and ask about my family. If they have an overrun they offer me the item at a discounted rate. We have sent charity donations, through them, to help other less fortunate families in China. I hardly hear from my US suppliers?

 

If you would like to see some of the Authors products he has invented and had manufactured in China go to; www.steellabels.com

About the Author

Bob Golden has spent 42 years working in the following trades, Structural Steel Engineering, Inventor and Auto Restoration Hobbiest.

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