In this post, you’ll learn about agents/brokers, trading companies and sourcing companies.

Like any unknown area that you move into in your life, when you are first dealing with China, it can appear quite daunting.  Just as you use an accountant to do your tax, a bookkeeper to do your books, and a lawyer to do law-related business, you’ll also need to choose a ‘partner’ to assist you with your importing matters.

So, who do you use?  Well, someone who will represent YOUR interests, not the interests of the factory.  Be aware that agents, brokers and trading companies make most of their money from the factory or supplier, even if you’re paying them too!

So who’s interests do you think they’re looking out for?

One of the questions I’ve been asked by clients is about agents or brokers they’ve found on the Internet that will source products from China for a 5% commission, or less.

Be aware these agents also receive a commission from the manufacturer or supplier who supplies your products, and to cover this cost the manufacturer or trading company will build in their commission into the offer price for the goods.

The result is that the commission paid by you to the agent can be anywhere from at least 12% to 100% and not 5% – you can never be 100% sure.

As most agents are profit driven, they may refer your business to the supplier with the cheapest price, resulting in substandard product, or to the supplier which offers them the highest commission (which isn’t necessarily the one with the most suitable product for you!).

My recommendation is to get professional support from an independent sourcing company to assist you through the importing process, allowing you to avoid the pitfalls, and work on your business, not in it.

At the end of the day, your importing business is about providing you and your family a better lifestyle.

Those who try to save a penny and not get professional help, their experience of importing from China can end up being a very expensive, frustrating exercise.

And, if you choose a reputable Australian sourcing company, your company may be eligible for a $20,000 government grant.

Enterprise Connect is a $251 million Australian Government initiative that provides practical support to thousands of small and medium enterprises (SMEs).

The first level of service offered through Enterprise Connect is a comprehensive Business Review, which is delivered at no cost to a client firm.  Skilled and experienced Business Advisers carry out Business Reviews on-site at your firm’s premises.

Your company may also be eligible for Tailored Advisory Services which reimburse your firm half the cost, up to a maximum of $20,000, of engaging consultants like ChinaDirect to help implement changes that improve your business performance.

We stumbled across this relatively new Federal Labour grant after one of our clients used it for our services.  We’re now on track to save that company $800,000 p.a. in purchasing costs!

Before you select an import adviser, or sign anything, make sure you read our special report on how to choose an import agent, which has questions to ask when you interview them. Go to the ‘Articles’ tab on this website to check out the free report.