Tips on How to Deal or Negotiate with your Chinese Suppliers – 3

25. Make sure you visit the factory during product development. It will speed the process, as nobody will tell you on the phone when they’ve got stuck with something (especially if the product is technically sophisticated)
26. Visit the factory during production & for quality control
27. If you can’t visit factory send an inspection company or somebody you trust (and is qualified for the job)
28. Don’t pay till you are sure all the product is in good condition (make sure the contract is draft that way)
29. Never relax! Even with good suppliers. “Quality Control: Always, even with good established suppliers”
30. Always be ready with back up options- you would be surprised about how many last minutes surprises happen
31. Expect Delays in your Supply Schedule (power shortages are common, national holidays…)
32. “Problems don’t finish after production. Supervise Logistic Paperwork! There are often mistakes that will get your shipment stuck

33. Payment Terms… Some buyers feel that, once you build the business relationship, things get easier (ex. Not requiring advanced payments)
34. Get rid of unreliable suppliers A.S.A.P. If they trick you once, it will happen again
35. Take care of good suppliers, they are not easy to find. Look for win-win when problems come up.
36. “Renegotiating conditions” is quite common. Your Chinese supplier sees the contract as the “beginning” of the relationship. If you follow tips 20 & 21 (track commodity prices & know suppliers cost structure) you will be able to assess if there is a fair reason to give in.

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