In general, when enquiring a product at a factory you will receive a simple and standard quotation. Everyone who works in or with China knows what I mean when I am talking about simple quotations. Mostly this is a simple excel file with generally speaking a small image, a product description summarized in one sentence, maybe some measurements and price/delivery details. In general, information which appoint the product but not explains the product in detail. Just that the factory creates the image that we all know what we talk about, do we?

Do you know what you buy?

A major factor when purchasing a product from China is the answer to the question; “do you know what you buy?”. A quotation, PI or PO should tell what you buy. It tells what product you buys, under what terms and with what measurements. However, there are millions or products in the world in hundred of different qualities or versions. Parts, measurements and maybe functions say a lot more about a product than just the information you get in the standard simple quotations.

Responsibility of the factory

The factory has the responsibility to deliver you the products “which you are buying”. The product which is described in a quotation, PI or PO to which you eventually agreed on. That means that the factory is only required to have any responsibility to deliver a product which is complying to the agreed quotation, PI or PO. The factory do not “need” to deliver the product in a version or quality which you did not agreed.

Benefit of both parties (Buyer/factory)

The factory has a lot of costs and responsibilities. You will find therefore financial benefit of the factory in the costs. At the buyer’s side you will find the benefit in this production order mainly in the price. Lower purchasing price on higher amounts gains a lot of profit for a company.

The lines of the China quotation, PI or PO

A product mostly consist about multiple materials and parts. Which all seperately have costs. The factory will need to purchase her materials or parts cheaper if the actual buyingprice is judged as “not enough to have the demanded profit”. The only way for the factory to earn profit will be to change the product where it can be changed. Where the buyer agreed on a simple quotation, the factory have the chance to still make the production profitable in between of the borders of the agreed details in a quotation.

CIL China can help you to buy in China. However, we can also help you in a consult to discover how you should buy en what you exactly buy. Contact us for more information or a consult.