Getting The Best Wholesale Price

Getting The Best Wholesale PriceCompetition is a business fact of life. Whatever you do, there’s someone out there who wants to do it equally well or better for less money. Your goal as a business owner is to stay on top. To do that, you’ll want to obtain the best wholesale price possible. If you can do that, you can keep prices at a minimum, and your business will grow.

If, however, a competitor is selling the same items for a less expensive cost, then they’ve obtained a good wholesale price. By obtaining a lower price, they can sell it at a discount and they will be at the top of customer’s lists. Obtaining a low wholesale price is one strategy to insure that both sales and profits will increase.

Here are some tips to help you obtain a low wholesale price, and keep your company at the top of customer’s lists instead of your competitor. This way, you can sell the same items at prices lower than theirs.

  1. Try to Place Massive Orders: This may not seem like an advantage for new sellers, because they require large investments which often make new sellers hesitant. If you can do it, however, it will probably be worth the effort.  Purchasing your product in massive amounts, will make the items cheaper per unit. Once you find a good wholesaler, this should be your goal. When referring to “massive orders,” it generally means purchasing in bulk and costing over $1,000. For example, you may buy a single item that you can purchase for $4, your $1,000 order will be a bulk order, and will be a good investment.
  2. Make Connections: Most top sellers didn’t obtain the best wholesale prices over night, they worked hard for it. Top sellers take the time to connect with their suppliers. A good relationship between the seller and supplier is crucial for the success of any business, and even more so when dealing with the Chinese. You need to establish a good relationship, because the Chinese think this is most important in business dealings. If you are a first-time seller, make sure to research the culture and style of business dealings in China. This will give you a good start. Connect with your supplier. Contact them frequently by phone or email. Let them know new business you may have in the future. This helps them feel a part of your business, because they see that you are interested in building and upholding a good relationship with them. 

    No matter how small your business or the amount of your order may be, nearly all Chinese suppliers give high regard for your business. Research shows that 99% of online retailers started out small and build from there. As their business grows, they retain loyal customers. Because they expect your business to grow, suppliers will also try their best to know you and keep you happy as much as possible. They want you to keep them as your supplier in the future. Suppliers and sellers have to be able to rely on each other. That’s where building the relationship and making the connections with the wholesaler is important. When you have the chance, let the supplier see you as a person. Tell them about yourself, family, and your future plans. Getting to know each other is important, and will help insure a solid relationship for years to come.

  3.  Go the Extra Mile When Dealing with Foreign Suppliers: Foreign suppliers, especially Chinese suppliers, have different customs. They can be a barrier when doing business. Language can be a hindrance in forming a good relationship. Don’t give up. Keep trying to build the relationship. You should always give them treatment which is above and beyond customary business dealings. In China, one way is to send your supplier local treats that are unique only to your country. Provide them written information about your business. Some foreign businessmen can read the language better than they speak it. By sending written information, you help to insure a better relationship.
    • Know Who to Deal With:  As much as possible, you should avoid dealing with middlemen. Instead, you want to deal directly with the manufacturers. This way, you will be more likely to get the best price.
    • Be Prepared: If you really want to get a good manufacturer, it is imperative to be prepared. Make sure you research to get a good, legitimate wholesaler, have the money you need to buy your product, have adequate storage for your product, and make sufficient transportation and shipping arrangements.
  4. Negotiate a Good Price: When you approach a supplier, you have to negotiate. Before you can do this, however, you must know the best possible price that you have to offer the manufacturer. Remember that you need to give a price that still makes your business a profitable one. Sometimes it’s better to have a partner do the actual negotiating, so you can still keep your good, personal relationship.

These are a few of the tips to get the best possible prices from your suppliers. If you follow them, you will find the best possible price, and stay ahead of the competition.

Financing An Import Business To China

Financing An Import Business To ChinaIf you’re looking for a profitable small business venture, starting an import business could be the way to go. Finding the initial money to start one, however, is sometimes difficult. This is true in all small business, including an import operation. Special business finance skills are necessary to begin a global business. Part of the success of the business is to find the right type of financing.

Imports are goods and services that cross into a foreign country for resale.   Import businesses are profitable because of the low-cost goods available for import from foreign countries like China. The cost of these products is low and they can be resold for a good profit.

Imports can make the difference between success and failure of a small business, especially with today’s economy. If you’re interested in joining the global market and are getting a traditional bank loan is difficult, you may have to turn to alternative methods for your small import business. It may be necessary to use more than one method.  Here are a few to consider methods to consider:

  1. Factoring Accounts Receivable

    This is simply selling your credit accounts or accounts receivable to another factor. The factor can be a commercial finance company, a bank, or an accounts receivable financing company. These are usually sold at a discount of the face value of the credit accounts. The factoring company gives you an advance payment, for a small fee of 2-3 percent. This way, you have the money, and don’t have to wait on for payment. This is known as an asset-based loan.

  2. Financing Using Inventory

    You can use your current inventory to get a loan to finance your import business. It can be expensive, but a very effective way of financing a new import business. This uses your current inventory to secure a loan to allow you to buy the imported inventory that your customers desire. Through this, you can increase your inventory and not impact your cash flow. Blanket inventory lien, floor planning, or field warehousing are all types of inventory financing. This makes it an asset-based loan.

  3. Purchase Order Financing

    This form of financing is similar to factoring your accounts receivables. You just go further and take your invoices or purchase orders and assign or sell them to a commercial finance company. The finance company has to assume the risk and the task of billing and collecting for these invoices. The company pays you a profit after it collects the debt from the customer. The cost is more expensive than a bank loan, but it is a way to get started if a bank loan is not an option.

Starting an import business may be a bit time consuming, and you may have to use other than normal financing, but the rewards can be great. If you want to add importing to your current business so you can diversify, don’t let failure to get a bank loan keep you from reaching your goals. Try one or all of the above methods, and you might be on the road to success in the import business.

A Way to Make Big Money As an Importer/Exporter

An import business can be a very lucrative business. Both import and export agents, who are also referred to as international trade agents, are needed in import/export transactions. The import agents handle the importing of foreign goods, and the export agents work with exporting domestic products. According to documentation from the Office of the United States Trade Representative, 95 percent of the $2.5 trillion annual trading is made up of small businesses. This means that if you are an entrepreneur entering the international trade business, there is the opportunity to earn big money. It is a very detailed process. Here are some steps to help you begin.

  • Prepare your office space—To do this, you find suitable business space. The space you choose for your business will have to accommodate a small office, but the larger portion will be devoted to shipping and receiving. Then go to an office supply store visit the sites online. Most office supply company such as Office Depot or Staples have online sites. Either way, you’ll want to get a fax machine, multiple-line telephone, copier, and at least one desktop computer and one notebook computer. In addition, you will need shipping supplies. This includes things like: a scale for weighing packages, a measuring tape for determining dimensions, packing tape, boxes and packing peanuts or paper.
  • Designate a staging/shipping area of your office space—This area should be divided into two distinct spaces. You’ll want one for packing and one for receiving. You’ll probably want to further divide these two sections according to destination. For example, if you are shipping basketball supplies to Canada, mark out an area specifically for Canadian shipments. You’ll want another area for receiving goods from each country, you’re receiving from.
  • Obtain the proper license—In general, the United States government and most state governments don’t require an individual to be licensed unless that individual is trading in one of the following: food, firearms, livestock, alcohol, tobacco, and copyrighted material, such as DVDs. You can contact the US Department of Commerce to find out if a license or permit is required for your particular trade items. You’ll also want to inquire with your state’s commerce department to determine if you need a permit or license.
  • Have start-up financing in place. Typically, the cost of starting an import and/or export business is around $5,000. If you want to take out a loan, you can visit the Small Business Administration’s website for details about getting financing. The SBA has a list of approved lenders. If the loan amount you require is under $35,000, you may consider a micro-loan.
  • Focus on items that are in demand—If you want to make big money, you need to focus on importing and exporting products that are in demand domestically and overseas. For example, in the United States, the latest technological products are good to focus on. When exporting, look for short supply. You’ll want to focus on goods or products that the country you’re exporting to has needs.

Why You Should Know the Culture’s Communication Style When Importing

Perhaps you’ve spoken with an international contact and have the conversation suddenly take a wrong turn. Maybe your contact doesn’t seem interested in the relationship. Your counterpart might even take a defensive tone when you were not expecting it. There could be any number of explanations, a common reason, however, its a clash between communication styles. Generally speaking, it’s direct VS indirect communication styles. This issue cause serious harm to or even cause failure of an important business relationship. To avoid these problems, there are a few things you should know.

Understanding Direct VS Indirect Communications

To understand the problem and fix it, you need an understanding of the two different styles. A direct communicating culture is one in which the people speak their minds and leave little question about where they stand on a given topic. Indirect cultures, although they consider themselves upfront and extremely honest, may consider such bluntness to be extremely rude and disrespectful.

A culture that communicates in an indirect manner is usually concerned with protecting the feelings and reputation of others. Cultures that communicate in a direct manner, while they are deemed highly considerate and respectful in their home culture, find this style highly frustrating and time consuming. Indirect communicators usually try to avoid controversy and are sometimes unwilling to discuss serious issues. If forced to discuss a serious issue, the speaker will often talk in circles around the issue. This leaves the listener confused.

Knowing Which Business Cultures are Most Direct and Most Indirect

The business cultures have been studied and it has been found that the most direct communicating cultures are the Israelis, Dutch and East Coast Americans. In more direct communication cultures you will find that no topic is off limits and nothing is too embarrassing to discuss.

The most indirect communicators are the Japanese, Koreans, Thais and other East Asian cultures. When talking to someone in Japan, for example, the word “yes” usually means “yes, I understand you.” A Japanese business person usually doesn’t say “no.” Instead, they say things like, “That would be very difficult” or “Perhaps we can look into that in the future.” These expressions usually mean the same thing, or most often means, “There is no way we are doing this.”

If you are from a direct communicating culture such as Northern Europe, North America, Venezuela, Australia, etc., then it requires patience and a careful choice of words without assigning blame. Sometimes it helps to take a deep breath before approaching issues. For example, when your supplier is late on delivery, instead of showing frustration, say “I understand that there may be some difficulty with the order. Our client is upset with us. Can anything be done to help the situation?” This is a more successful approach than the typical direct approach such as, “Where is my order? You promised shipment on Friday and now my client is demanding a deep discount and it’s your fault!” The major difference is to not assigning direct blame. Instead, you explain the situation you are now facing. If you have a good partner from an indirect culture, they will try to help to balance out this issue over time.

Usually, it is harder for an indirect communicator to switch to a direct style. They feel it is extremely disrespectful. To adjust, you’ll want to focus on the facts of the situation. It also helps to read body language, visit your partner/client in person, and arrange for a third party who is familiar with the both styles of communication that can talk to both sides in order to reach agreement.

Etiquette to Follow When Importing/Exporting From China

Etiquette to FollowTo engage in an import/export business, you not only have to have knowledge of the business, you need to know the Chinese method of doing business. The tips below will help to insure you meet the proper business etiquette when importing/exporting from China.

  • Be Patient: This is imperative, but also difficult when you have deadlines, transactions, and other business opportunities, but have to take it slow. China is relatively new to the international. Sometimes, the individual you’re working with may not have the experience and the necessary skills when making international business deals. How the Chinese view the risk of the transaction and their relationship with the foreign country determine if the arrangements are done quickly or slowly.
  • Keep a Good Relationship: Starting a good Chinese relationship requires trust and security. To the Chinese, it is a relationship which will develop into a well-built personal relationship. This relationship requires honest, reliability, and acceptance, not just money or the actual business itself. If you develop a personal relationship, a foreign businessman can increase opportunities in import/export business transactions with Chinese businessmen. The Chinese prefer to do business with those who have already established good character. They give importance to safe, sound, and low risk business deals.
  • Remember to foster “Guanxi:” For most Chinese businessmen, “guanxi” pertains to honor, making good promises, staying true, showing good manners, and showing them respect and loyalty. Having the appropriate “guanxi” can determine whether or not your business will prosper. Establishing “guanxi” with the Chinese government can assess whether or not your company is competitive enough for doing business transactions in China. Sometimes, “guanxi” can be a fragile thing, so it is importance that you take care so you can have a successful import/export business relationship with China. If you maintain a good “guanxi,” you can do business in China for a long time.
  • Establish Local Contacts or Other Professionals: It is important that you be sure all decisions relating to your import/export business in China are discussed properly and well handled. You should be sure to speak Chinese, or have an interpreter. You also want to be sure to recognize, give due respect and adhere to their ways of doing business. You can ask for help from import/export professionals, locals or other persons who have had experience with doing business with the Chinese. A Chinese business partner will feel honored by a team of local representatives and foreign visitors. The Chinese also view this as honesty and promise to make the business relationship last.

    Local experts or representatives know very well the tricks of the trade that can or cannot work with the import export business or the businessmen they’re negotiating with. Those who truly know and understand the Chinese business culture can handle the ins and outs of the business. They can also determine if the matters being dealt and contracted with are expected and carried out. Resorting to an expert’s advices can reduce the costs and ensures that import export business will be successful in the long run.

  • Show Contract Awareness: The Chinese have a different business system and etiquette differ from those of foreign businessmen. Most Westerners, contracts as documents binding two parties in an agreed-upon arrangement. A Chinese businessman will dislike it if you bring along a contract in the initial stages of the negotiation. To the Chinese, this is not how you show commitment. You show it by promises and responsibilities that are based on relationships, not solely on a piece of paper. For the Chinese, a contract is just a formality. Be patient for time will come that the contract will be signed, and the business transaction will be sealed and completed.

Doing business with the Chinese is very different from doing business in other countries. If, however, you follow these guidelines and build a good, solid relationship with the Chinese, you can have a very lucrative import/export business.

China Import

Okay so let’s get straight to the point here. Are you wanting to learn how to import from china but not sure where to start?

Are you wanting to learn the skill of china import and be able to find hot quality products from china and import them and sell them for profit?

China import is learning to find quality factories located in mainland china and be able to negotiate with the factory owner to get the best price and then arrange either through a freight forwarder or by yourself the delivery of those goods from china to Australia or your country.

You can read books or buy DVDs on china import but the quickest and fastest way is simply to attend a seminar and learn an introduction to whether this business is a good fit for you.

We have been teaching importing and marketing to Australians and many overseas clients for over 25 years. We show you everything about china import you need to know to launch your own import export business as soon as possible.

Import from China to Australia

There are a few ways to start importing from china into Australia. The first step is ultimately to find your product that you plan on importing. Will it be electronics, bikes, baby clothing, fashion or footwear? The lists are endless however as this is a critical part of the importing formula you must figure this out now.

Here are some simple ways to import from china into Australia.

  1. Find hot products
  2. Locate factories
  3. Negotiate with factories
  4. Sample test from a few different factories
  5. Hire an inspection team to inspect the factory
  6. Use a freight forwarder to ship your goods from china into Australia.
  7. Market the product

Now I’m simplifying a lot of the import from china to Australia process here but I’m sure you get the idea that there are certain elements which need to be actioned on. If you would like to find out more on importing from china simply sign up to our free newsletter.

Creating A Website For Your Chinese Import/Export Business

Creating A Website For Your Chinese Import//Export BusinessYou’ve decided what products you want to import from China, you’ve contacted your supplier, and you’re ready to go. To sell them, you need to have a website. With the internet, the import/export trade is truly a global market. In order to begin taking part in this international trade, the first thing you need to do is find good domain name words and register it as inexpensively as possible.

  • You may be thinking that all the great domain names are gone. That’s not true. All you need is a little creativity, and you can find a great domain for your website. Let’s say you want your site to be wholesalegadgets.com. You can go to godaddy.com, or any other domain search site, and do a search for that name. It may or may not be available. It may be available but at an expensive rate. When it isn’t available, or is too high a price to pay, here are a few tips you can use to alter the name you want so it is available for the price you want to pay:

  • When you begin your import/export business, you have two options for creating your website. You can build it yourself, or hire someone else to do it. It’s obviously going to cost more to hire a website designer. If you want to save money, you can make your own website by purchasing an all-in-one website hosting and design package. The hosting packages usually include website design templates. It is best to find a host that has templates which allow you to customize them and create a unique site for your company.

    You can find web hosting companies that offer free websites. It isn’t difficult to find a host site for under $10/month. That’s a small amount to pay for 24-7 advertising. These are fine for personal sites, but if you want to make a splash in the waters of international trade, it is probably wiser to upgrade to their "Pro" package. This will remove advertisements from your site and keep it from looking “tacky.” Import/export entrepreneurs will tell you that having a professional website can greatly help you establish a good reputation. A good reputation will help you establish a relationship with the Chinese, and to them, relationship is everything.

    Following steps and using templates can make the process of building a website yourself really simple. You simply use the guide to cut and paste text, graphics, video and more. You don’t need to know HTML code. Using information you provide, the website maker does the hard work for you. Here’s what you do:

    • Choose a template—There are many you can choose from, so select the one that works best for you.
    • Customize it—Use the color scheme you want for your business and select layout dimensions. If you want to add new content everyday to your site, you can even choose a blog format.
    • Add Interactive Features—You can use the free widget tool to add lots of great interactive features to your website. These are just like professional designers use. If you want to make extra money, there are even widgets for placing ads on your site. You can even track visitors to your site.
    If you’re in the import/export business, you’ll want to create your own store on your website. You can use WordPress to do this. WordPress is great for a beginning retailer, because it is simple to use. Best of all, it’s free! You can use their website design, and select the MarketTheme to give your online store personality and attract new customers. The program includes the desirable built-in shopping cart system which can integrate paypal. There are many modules you can add to your store for free. It is a very helpful community if you ever have any questions.

China-Based Company Strength

China-Based Company StrengthInternational business opportunity is alive and well in many Chinese businesses from manufacturing process technology to supplier consolidation. It is also true from logistics to customer service. China has built strong teams due to the influence of the Western world and the increase of China-based companies. They have often used a multinational-trained staff. They even hire non-Chinese with international experience into senior positions. Hiring non-Chinese employees improves their foreign relations and eases negotiations when working with foreign-owned businesses.

In both formal and informal situations, Chinese companies enjoy strong support for their activities. This has made them more competitive in bid situations for manufacturing of products, and given them an edge in key state owned industries.

In the past few years, the business environment has now become tougher for all businesses. In many ways, Chinese companies are better able to manage the transition from lower margins and leaner operations than other countries. They have a much lower overhead to begin with. The business world has learned not to be surprised by Chinese companies. They are good at changing the direction they take, and making rapid changes in their organizations. The changes the Chinese make are successful, even though they may not be as well researched, or may be less sophisticated than those of Western businesses. The Chinese work at a ridiculously rapid rate due to the whims of the Chinese consumer and the B2B market changes. Sometimes, all that’s needed to gain market shares, is to put together a strategy that is well conceived. Western businesses require strategic plans, but most mid-sized companies in China do not have one. They do not have budgets or sales and marketing plans either. Their way of conducting business, while being an easier method of conducting business for them, often makes understanding their approach challenging for Westerners who they do business with.

There used to be a competitive, straightforward advantage for foreign businesses. All they had to do was persuade people that the quality advantage was worth paying for, but that is now a thing of the past. More and more businesses are operating from China, and Chinese companies now have a huge market share grab. Now the Chinese companies are producing more and more quality merchandise at lower prices than foreign companies. It is often impossible for other companies to compete. Import/export to China has become a more and more accepted practice by foreign business. At one time, China’s pharmaceutical companies worked on trials and kept results for other countries. Today, because of the improvements in Chinese business, they usually are working on drug discovery and the improvement of manufacturing practices.

Understand the strategies of your Chinese competitors may be very difficult at times. You may also find it difficult to do business with someone on the other side of the world. Current challenges for all businesses, however, have led them to China-based companies as a method of survival.

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