Samples & Quotes
Once suitable manufacturers have been identified, the next step is to obtain concrete offers. Here all details and characteristics of the product should be clarified with the factory so that the prices can be calculated exactly and compared.
The offers which seem interesting can be taken now into the closer selection. It is recommended to first order a sample of the best offer, which ideally already corresponds to the later product or comes as close as possible to it. If necessary, samples can also be ordered directly from two to three manufacturers. The costs for samples can vary a lot and depend on the product as well as on the respective manufacturer. Some manufacturers even provide free samples (mostly for small and inexpensive products). However, many manufacturers also charge a significantly higher price for samples than for the later unit price because high costs arise when creating an individual sample. These are often custom-made products for the client, which the factory has produced in the internal sample room.
For logos or new designs, additional molds often have to be produced, which causes extra costs. The process to get the final sample, which exactly meets the customer's expectations, is often the most complex part from the factory's point of view. Even if a manufacturer estimates a slightly higher price here, in most cases he cannot cover his expenses. Nevertheless, in general the advance payment for the sample will be deducted from the production and given as a discount.
Even if a sample is offered free of charge by the manufacturer - a shipping fee must always be paid. As a rule it is advisable to send samples via air freight, as this is much faster. Only with heavy and bulky goods the sea way can be meaningful, if there is enough time.
After successful testing of the samples, the preliminary decision should have been made. Now prices can be renegotiated with the other manufacturers to get a final offer and to make the final decision. But be careful, here is a dealer's skill in demand. It is often not smart to push the price down as far as possible. Ultimately, it must be a fair deal for both sides. Because the manufacturer should also be interested in a long-term, rewarding relationship, since he then also likes to respond to the customer's additional wishes, as he is an important client. This in turn has a positive effect on cooperation and production. If the manufacturer is put under too much pressure, he will possibly lower the product quality to be able to keep up. This should be avoided at all costs.
Negotiating prices in the local language can be beneficial, but only if the factory knows that it is an international customer. Almost all manufacturers want to expand their business relations to Europe and America in particular. The prices on the local market are often already so low that it is not worthwhile from the manufacturer's point of view to further expand the business here. Therefore, the initial contact with the manufacturers is usually in English. Even a sourcing company in the background supports the price negotiations as the factory hopes for further orders with a positive outcome.Platform