Price monitoring for the purchase or production in China
China sells more manufacturing consumer goods than any other country in the world and still is the world's biggest manufacturer and industrial producer.
This country has an export tax refund policy as a way to improve the competitiveness of its exports by canceling double taxation on exported goods. Exported goods were subject to zero percent value-added tax (VAT), meaning they were free from VAT or received discounts.
In plus, consumer goods from China were released from any import taxes. These lower tax rates helped keep production costs low, allowing the country to attract investors and companies seeking to produce low-priced goods.
China has the world's lowest labor costs for its production workers. But at the same time, the country has grown an economic structure that can lift more people out of poverty than anywhere else. China's low cost of living makes low wages manageable for the average worker in the manufacturing industry, and its factories are prospering, manufacturing consumer goods for the whole world.
Compared to other countries, China has an incredibly well-developed infrastructure, so raw materials can be delivered to the manufacturing sector in the shortest terms and at the lowest price. Chinese plastics manufacturers, production factories are still on top when it comes to shipping material or finished goods.
In the upshot these aspects allow China to offer lower production costs and more advanced production capabilities than other developing manufacturing industries.
Purchase price monitoring in China. What to look for?
If your decision to run business with China is serious, constant monitoring of the market situation should become your second profession.
It is important to study all available offers online and determine the average market price for the purchase of your goods. For small and medium wholesale are suitable such international online platforms as Alibaba and Made-in-china.com. You can also find many offers from manufacturers through the Chinese search service as Baidu.com.
But do not focus on the lowest prices! "The lower purchase price - the higher profitability of the goods" - usually with such kind of approach many people start searching for a potential supplier in China. And, looking only for the lowest price segment offers, they fall into the tricks of dishonest companies.
The Chinese market is overflowing with favorable offers, but the manufacturer does not always update the prices in time, which means that the customer can make the wrong purchase calculations. And the most effective way to find the best purchase price is to contact the experts. They will help you to choose the goods with the best price and quality.
Price monitoring for purchase from China will guide you to the most profitable offers for your business and save your time&money in the upshot.
Manufacturing cost, shipping rates, delivery costs. How to understand where to order in China cheaper.
China is a world leader in many types of consumer goods. Especially if you’re looking to produce custom products, you will save so much time and money by working with a manufacturer who specializes in your product category.
After you have defined the type of goods, you need to understand the cost of its manufacturing in China, their shipping rates, and delivery costs.
The stage of building a supply chain for your business is easier to start with online research. It' s very important to find and carefully analyze the information about future business partners for your successful experience to buy directly from China.
Another option is your personal participation in the exhibitions, which are around 300 in China every year, the most popular of which - Canton Fair - welcomes about a million visitors from around the world. You need to be very well-prepared to find the best supplier, to deal with all the aspects of production and delivery and to sign a contract with the most profitable terms. It' s necessary to note that exhibitions will benefit only those who know their rules.
The other way is to delegate this difficult task to the experts and save a lot of time. By ordering monitoring you get a full report on public offers of wholesale сompanies and production of goods with an average price range. You will have a complete picture and will know where in China to make the purchase of goods cheaper. We can also monitor prices for a certain category of goods or analyze offers for similar goods. Monitoring does not include the price calculation for individual purchase quantity.
Cultural features when monitoring prices in China
Each product has its own cost, and you have to understand that it cannot be far below the market price. Do not focus on the lowest prices, you may face the tricks of fraudulent companies. The best solution is to make a list of potential suppliers, research all available offers and determine the average market price for the purchase of goods, rejecting any doubtful offers with unreliable prices.
The strategy not to bargain is a real mistake when dealing with the Chinese. Generally, in negotiations, you can reduce the price and achieve more profitable delivery terms, speed up the deadlines without increasing the cost of your order, get free samples, etc. To make a really profitable deal, it' s better to negotiate with several suppliers simultaneously. This way you can argue to reduce the price, to achieve competitive rates for yourself by referring to information about other propositions of the market.
How do you save your time and your money ordering Price monitoring in China by M3Cargo?
In case you already have a regular supplier and you're used to purchasing from him systematically, but have not analyzed the market offers for a long time - Purchase price monitoring in China will help you to understand how overpriced your regular partner is. Having this information you will be able to argue for a more fair price in the negotiation process.
So, if you want to have a full price control - order price monitoring for purchase from China is the right decision.
If you doubt the efficiency of your purchasing department and want to check up the benefits of their cooperation with China, monitoring will give you the opportunity to compare the prices of your purchases with offers from other Chinese suppliers. That’s the best way to get conveniently the most competitive market offer for your business here and now.
In case this is your first shipment of goods from China, purchase price monitoring will allow you to become reasonably confident in this decision. We will make all calculations and help you to move forward to the next stage - supplier’s selection.
Plus this is a very effective way to protect your business from the bubble companies and fraudulent deals. It is the hard work and we are ready to be the providers of your profitable business deals.
- Analysis of market prices for purchasing products in China;
- Ability to reduce the purchase prices by having other competitive offers of potential suppliers;
- Understanding whether is possible to increase the product profitability;
- List of potential suppliers with current prices and contacts;
- Possibility to increase the shipment by reducing the price per item.
Purchase price monitoring in China by M3Cargo includes:
Our monitoring covers all offers of the Chinese market that match selected criteria, are publicly available, or provided by the supplier on our request. These can be manufacturers themselves, as well as large and small wholesale companies. We check the relevance and credibility of each option.
The number of offers to be checked depends on the product category and its prevalence in the Chinese market. On average it is 50-250 offers, depending on the given research conditions. The price control is carried out by a special method, which was chosen by negotiations with Chinese suppliers.
There are many competitive offers online that want to promote their own production in China. We find only the relevant information and give you only real offers.
Why it's difficult to do Price Monitoring of goods in China by yourself?
- Objective assessment of the average market price includes a large amount of information. Not everyone can manage such huge data collection and processing volume without experience. At M3Cargo we analyze not only well-known international online platforms, online shops, but also trade shows, websites of manufacturing companies and use our own supplier’s network in China. It is needed to have a certain level of competence to differentiate the marketing efforts from a really profitable offer.
- The selection may include companies that provide unreliable prices. Some do not update their prices in time, set an incorrect price, or do not exist at all. Having made a mistake at this stage there is a risk of getting caught by fraudsters and distorting the monitoring results. Often fake companies put up too low a price on purpose to win the buyer. They're doing it pretty well. Such companies sell non-existent services and goods in the hope you’ll sign the contract and pay up. Our experience at this market allows us to cut off such offers and not take them into account for monitoring. We will help you to arrange a profitable deal and make the purchase at low costs. Finding a supplier is very necessary and the most important part of purchasing the goods.
You can of course monitor the purchase prices of Chinese suppliers by yourself. There are no strict rules in this field. But several important aspects can distort the result :