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Ideas needed, trade business is killing me.

(@Anonymous)
New Member

Ok, I’ll try to make this short. I’ve been operating a trade company here in China for 4 years. Basically I get requests from potential buyers and a research factories, negotiate pricing, blah….blah.

Problem is I get requests for just about any product you can think of. Sometimes I spend weeks researching and working on a project (mind you many products I have no idea about so I must take it upon myself to learn EVERYTHING about the product, so I can insure satisfaction)

Most of the time I do this work and the client doesn’t buy. I honestly think 75% of potential clients are more curious to see the pricing they can get, that serious about buying, truth is, it’s running me and my staff ragged.

At this point I’m thinking of just focusing on fewer products, perhaps just find several small businesses to deal with and keep my overhead to a minimum.

What do you think are the pro’s and con’s to this approach?

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Topic starter Posted : 25/08/2008 12:14 am
(@Anonymous)
New Member

Re: Ideas needed, trade business is killing me.

Why dont you reverse what you are doing. Find a great product that is in demand and has a sustainable competitive advantage and market the product outside of domestic market to distributors?

You could present a marketing proposal to the firm and save a lot of time becoming a wholesaler

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Posted : 27/08/2008 10:01 am
(@Anonymous)
New Member

Re: Ideas needed, trade business is killing me.

SBA;34755 wrote: Why dont you reverse what you are doing. Find a great product that is in demand and has a sustainable competitive advantage and market the product outside of domestic market to distributors?

You could present a marketing proposal to the firm and save a lot of time becoming a wholesaler

In order for me to mantain sanity I must follow your suggestion.

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Topic starter Posted : 27/08/2008 5:50 pm
(@Anonymous)
New Member

Re: Ideas needed, trade business is killing me.

SBA has a great idea.
however, east2west Inc, you must be expert in the business to do that.
and those items that sell in volumes, the prices are extremely competitive. and probably the buyers know all the factories already.

*I worked to supply CD jewel box/DVD box to major record labels in the world. there is no profit margin for trading agency. the record labels just made half year to 1 year contract directly with us (the manufacturer)
We shut down the business in 2006 because the market changes to mp3/mp4 downloads trend. never look back.

now I work the same way as you.
but I am careful at what the client is asking for.
and pay attention to how they talk about.

also in the quotation, never make any prototype unless they pay for the service.
if they are serious, they would pay the fee.

I understand that you were not in manufacturing before, so very hard to speak the same language or to learn new items.
for me, it's easier, regardless of the materials and way of manufacturing.
I only can tell you it's better to pay attention to details such as final product weight, production requirement, and final packing qty and packing details.
the more information you give the clients the more they feel you are professional.

and yes, if they know you dont own the factory, they probably will use your information to find a manufacturer directly.
Thus,the detail to attention and the way of presenting the quotation is criticial about your image.
because the clients are also concerned about how to deal with the chinese directly.

if you can show that you are professional and know the things/cultures in & out, they will pay that extra for your service.

***
however, my suggestion is that, since you are a foreigner, your adventage should be helping oversea firms to source products in China (new or old products)
once you are able to trade existing merchandises with the clients, they would give you hints whenever there are new items coming or they are looking to be introduced in the next season.

this is your actual advantage!

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Posted : 10/01/2010 7:41 am
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