Today we turn five years old. Thanks to many of you, we have been able to grow into Australia’s leading Sourcing Agency, which has allowed Australian businesses to become prosperous and globally competitive.

First, it may occur and we know it does, that you have a great Business idea and decide to import a particular product range. You may have just completed all your market research and feel the excitement running through your veins, as you know by selling this product; it is going to provide you with some very attractive earnings. You may think you know the import industry well and just want to get started immediately!

Well, you can, but wait! Ensure you read this secret before you go any further.

I am going to show you a detailed breakdown of the important components of the ChinaDirect Importing process that has worked successfully for thousand of our clients over the years.

The biggest mistake most people make is not utilizing the first step of:

Research and Tender!

The first two weeks of the process is where all the planning is put into practice. Like anything in business, if you fail to plan, you plan to fail!

Therefore, during the Research & Tender stage, you will need to perform the following tasks:

  • Prepare request for Quote document
  • Research potential suppliers
  • Send request for quote to potential suppliers
  • Obtain quotes and evaluate offers
  • Qualify and shortlist appropriate suppliers
  • Prepare the following reports:
  1. Supplier Summary Report – with each suppliers details and contact person
  2. Quote comparison report
  3. Landed cost analysis report

In this blog, I am going to go into detail of the first and most critical stage of Research & Tender, which is

‘Prepare request for Quote document.’

This is a very important document. Receiving quality products through the importing process starts with your specifications. The more detailed information you give the supplier, the more chance you will have your product produced to the standard you desire.

Including details such as an opening statement, item details, quantity, a size chart, information you need to provide later, questions to ask the supplier, an emphasis on a long -term relationship and a request for a sample are detrimental when requesting a quote from a Chinese supplier.

Here is an example for importing high quality men’s underwear:

  • Opening statement: (What kind of supplier are you looking for? Writing a simple statement about this will help provide clarity for you as you begin the process)

For example:

“We seek a manufacturer to manufacture high quality men’s underwear”.

  • Item details: (Here you need to provide as much detail as you can for the product you are looking for).

For example:

Item Details

Item:                Men’s boxer underwear with front pouch

Material:           Lenzing Modal/Lycra

Labels:            One small logo, heat pressed on the front of the waistband

One transfer heat pressed on the inside of the waistband at the rear

Quantity:          Approximately 4,000 pieces per order

Colour:            2,000 pieces black

2,000 pieces white

The research you need to complete means getting specific on what products you want to import, how much they cost in a local market to buy wholesale and what kind of quantity you want.

  • Quantity: Ensure you do your homework before you send your request for your quote to the suppliers; ensure you advise a quantity for the initial order.

For example: Quantity: 10,000 per order

We recommend you provide a realistic order of what you wish to purchase in your first order. Man of our clients have previously over ordered in their first order and then drop down, thinking that they are more likely to get their preferred suppliers attention. This however, only frustrates the suppliers and is more likely to lose interest in your order altogether.

It is also important to remember that the quote will be priced differently according to the amount of product that you are placing an order for.

  • Size Chart: Chinese companies deal with many different countries, exporting to large markets such as Europe and the USA. Because of this, standard sizes are therefore quite different. In order to resolve this issue, your best option is to provide a size chart to your supplier.

For example:

Size:               Waist (cm)                  Waist (inches)

Small                75-80cm                                          30-32”

Medium           85-90cm                                         34-36”

Large               95-100cm                                         38-40”

X-Large           105-110cm                                      42-44”

XX-Large         115-120cm                                     46-48”

XXX-Large       125-130cm                                    50-52”

  • Information to provide later

There is certain information which is not critical at this stage, however, which you will need to supply later. For example, details such as a pattern and logo artwork, plus providing sample pieces.

Advise your supplier you will provide these at a later stage.

For example:

We will provide:

  • Pattern
  • Logo artwork
  • Sample pieces for the above (if you are selected as our chosen supplier).
  • Questions to ask the supplier

There may be a lot of questions you would like to ask the supplier, but in the request for a quote section, focus on only the following points:

  • The suppliers experience and track record in export
  • Pricing of products/shipping production
  • The product quality
  • Suppliers workmanship
  • Professionalism of the person managing project/staff
  • Willingness to comply with the quality standards provided by you.

The most important tip is to write these questions in plain and simple English. For example to find out their experience and track record, you can ask them

- Has your company exported before? If so, to which country?

  • Emphasis on long-term relationship

In the Request for a quote, we strongly recommend you put a great emphasis that this business relationship is going to be a long- term relationship. This is what the Chinese value and it demonstrates to them that you are playing their game.

  • Request for sample

During the Request for Quote process, you can request that the Supplier provide you with a sample to show the supplier’s workmanship. Most suppliers are happy to do this for you, but more often than not they will request you pay for the freight.

These tips will help you get off on the write foot while importing from China. While there will be plenty more secrets released over the coming months, we strongly recommend however that if you are looking to import soon, you first attend one of my up and coming seminar seminars. These will tell you all you need to know about the importing process.Click below to register for your city.
Doing Business in China
Sourcing and Importing From China Workshop & Consultation Session

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