China is well known as being the factory of the world, and there isn't anything that has not been produced or manufactured in China.
People from all over the world travel to mainland China to get their wholesale goods manufactured here for this reason.
But this is not to say that everybody who comes to China to source wholesale goods comes away a happy customer.
There are many importers out there with horror stories of items made to the wrong specifications, items that arrived broken or 'manufacturers' that acted in a a downright fraudulent manner.
This doesn't mean there aren't ways to see the wheat for the chaff though and there are eight questions you can ask yourself to make your sourcing trip a profitable one.
**Do they have good quality products?**
While this may appear to be difficult to determine on a factory visit there are questions you can ask the supplier to establish whether their wholesale goods are sound or shoddy.
Questions you need to ask to know if the consumer electronics you are thinking of buying are good products include:
*What did you use to make this prouct? (Make sure to watch out for potentially toxic or forbidden substances like lead paint)
*Has the product passed the necessary tests to be sold in your market?
*How long will the battery last?
*How long does it take the battery to get to full power?
*How far will the wholesale items' infrared system work in meters?
*Is it a noisy product to run, what type of noises does it make when it is operational?
*How much does the product weigh and what are its dimensions?
Looking at the wholesale item through the consumer's eyes will help you make a better decision on whether or not to list the item in your stores.
Get all the testing and checking done at the factory because there will be little opportunity to do any when you have left China.
**Does the packaging look good?**
While some factories produce good quality products, the packaging can be a different story.
The two issues that usually surround packaging include the dimensions of the box and the inclusion of trademark-breaching markings.
Some questions that you should ask include:
* Can the factory repack an item if its original box is unsutable for you?
* What is being used in packaging and the presentation of the product? (lead paint can be a problem here too)
**Do they have a fast lead time**
Customers will always want items they buy to ge to them instantly, no matter where you are.
The supplier should have the capability of ensuring the delivery time you need. This is very important to inquire about as lead time is now just as big a deciding factor as price.
**Are their prices competitive?**
Price is influenced by several factors, the key factor being the wholesale items quality.
Never accept the first given price instantly as it always pays to shop around. You should have already researched the market value of the product and depending on the quality after testing the product you should have a rough idea of what the value of the product is.
It always pays to vist more suppliers than less.
**Do they have a MOQ? How big is it?**
While not as often considered as lead time, wholesale product quality or price MOQ can be just as important.
In fact the Minimum Order Quantity (MOQ) requirement might just be a deal breaker.
If the manufacturer of the wholesale product asks for a bigger MOQ then you are capable of handling it could mean the end of the deal, even if the price per item, lead time and product quality makes the deal very tempting.
If for example the MOQ is four times what you can handle you will probably have to look for a different supplier.
These are the two questions you need to ask yourself before commiting to such a large wholesale order:
1. Are you happy having such a large part of your working capital tied up in inventory?
2. How fast will you be able to sell the items sitting in stock?
**Is the factory being open and honest with you? How can you tell?**
The supplier must be open minded and honest with you. They should understand your business needs and accept that the lead time, price and MOQ you can accept will depend on the size of your business and your business operational procedures.
The realities of the business world are that the supplier and customer will always have their secrets from each other.
All you need to do is to gain their trust through tactful dialogue. Let them answer your questions and pay attention to what they say.
Ask yourself whether they really answered the question with the information you asked for, or just talk around the question.
Test their knowledge of the products and ask them point blank what the faults are. If the vendor is honest they will tell you, even if in their mind it risks the deal going through.
**Are you being fair to each other?**
People like to be treated fairly in life and business. Fairness will lead to good business relationship with your supplier, and help tremendously down the line.
Building good rapport with your supplier is highly advisable as it helps build a long term relationship with them, and get better prices, more favorable MOQs, better lead times and all over better treatment later on.
You should also understand when a factory cannot give you the lead time, price or MOQ you want and end negotiations on friendly terms.
You should be fair in understanding that they have a business to run, just like you do.
**What is the factory capacity / organizational structure?**
A good trader should know who they're buying from, just like a good commander will know their enemy.
If the company says they can produce the quantity you require, but they only have a handful of employees, for example you should start to question their capabilities.
Make sure to walk through the factory when you visit a potential supplier.
Have a look at their machines and the building surrounding them. Is the workspace clean? Does it look well run to you or is it complete mess and cannot make head or tails from?
However, keep in mind that the definition of "clean" changes from country to country, company to company and even person to person.
A well run factory should be fairly easy to spot. Ask them how many employees they have, what their output capacity for a certain product is and how they manufacture these products. Also ask where and how they package and store products after they have manufactured them.
The last thing (well actually the first thing) you should do if you are not fluent in Chinese is to get a translator to go with you. They won't be expensive to hire and will save you loads as they are a person in your corner protecting your aims.
So start doing your research now and get an idea of your market.
Any spadework done before you touch down on your next sourcing trip is sure to pay off in buckets.
Article Source: http://EzineArticles.com/?expert=Rose_Lee