Pros and cons of foreign trade factories and foreign trade companies

Doing foreign trade is better for inexperienced people, and foreign trade companies basically provide you with a platform. Doing well is a matter of your own. Colleagues are often unwilling to communicate with each other. The product is not familiar with, and the trading company does not have professional people to give you training product knowledge, often for a long time without a list, but in the factory, there are professional technical personnel, but also can easily find their own products to the workshop; The skills of negotiating are relatively poor when they graduated, and the trading company basically depends on this. In the factory, if the customer visits, they can also invite the technical personnel of the company's responsible person to participate and act as translators (but do not position themselves in a single Tools for the translation of tools for writing e-mail above), in the process of translation can learn how to negotiate with people;

Foreign trade companies are more suitable for salesmen who have accumulated customers, and increase their income through the use of commissions. However, if they have accumulated customers, they can do it themselves. The fourth trading company is very difficult to do well if it is not based on good service. Because information is transparent in this era, google customers can find factories, and the factory's price technology will have an advantage. Which kind of person is suitable for foreign trade companies? There are customers who have accumulated, high negotiation skills, products that are well-understood, and willing to endure hardships (some customers will set a lot of products - they will be produced by different factories, and the number of each type will be small, so that people will basically find foreign trade companies. Tracking the entire order, they do not want to track so many factories themselves.)

Analysis of the advantages and disadvantages of foreign trade companies:

Disadvantages:

1. More and more international buyers tend to purchase directly from Chinese manufacturers in order to obtain price advantages;

2. Domestic manufacturers have increased their awareness of developing foreign customers. Many factories have started to develop their own products while working with foreign companies. Coupled with the adjustment in national policies, the right to export from the original approval system to registration system, factory exports gradually become a domestic climate.

3. While we do not have factories on our own, we have no advantage in terms of price, and the competitiveness of other domestic suppliers is weak.

Advantage:

1. The advantage of not owning a factory is that the factories in all of China are our factories. The needs of customers are often diversified and individualized. Generally, a single factory is often difficult to meet the needs of customers. Our advantage lies in its ability to maximize Integrate the advantages of domestic factories to achieve the needs of customers.

2. Analyze our strengths by analyzing the procurement characteristics of international buyers and the disadvantages of the factory's foreign trade.

Divide international buyers into 4 categories:

a. There is a purchasing department in China and a multinational company that employs domestic purchasing staff. Such companies generally purchase directly from factories or purchase from powerful dealers. They are very familiar with China and the products they purchase tend to be finished products.

b. There is no procurement department in China, but the person responsible for the procurement in China, such companies are very familiar with or understand the Chinese market, they have more or less experience in purchasing in China, and they hope to buy quality and cheap in China. product. They tend to shop around and the high ridiculous prices are likely to be eliminated. Such a buyer will not necessarily choose the one with the lowest price, but will take the lowest price to find the supplier that he thinks is the best service and hopes that they will accept the price. So when giving them quotation, be sure to give them an overall image and let him believe that you provide not only the right price, but also good quality and service.

c. SMEs that have a desire to purchase in China, but are inexperienced. Such companies are often the target of foreign trade companies' key services under current circumstances. First of all, they often do not have dedicated personnel responsible for purchasing in China, can not invest too much effort, the needs of customers are often diversified, a factory's products often can not meet their needs, which requires foreign trade companies to assume the responsibility of integrating domestic factories, Meet the needs of guests.

d. Has not considered purchasing in China and has no procurement experience. The potential of this development seems to be relatively small, but not all. I have several clients that have never considered purchasing in China. When I receive my sales letter, I just have a new project on hand. I'll just pass it to me and see how quickly we report prices and send samples. Because the first cooperation was smooth and smooth, far beyond their imagination, a trade relationship was established. For this type of customer, I think that the possibility of developed countries such as Europe, America, Australia, and so on is relatively high. Relatively speaking, these regions have simple folk customs.

For small and medium-sized trading companies, b\c\d customers may become our customers. However, for type B customers, special price advantage is required. Some domestic relatively strong factories and other trading companies are your competitors. For type C customers, you can boldly develop, provide quality services, and establish mutual trust with them. relationship. If there is more capacity, you can consider developing a fourth tired customer. The characteristics of such customers are that they do not understand the Chinese market and are unwilling to find other Chinese suppliers to compare prices. As long as your prices are reasonable, the guests will accept that there is absolutely no price trouble, but they must provide the best. Quality and service allow you to be their most reliable supplier. Personally, I like to develop C and D customers.

Disadvantages of the factory's foreign trade:

Although most domestic factories currently have a tendency to export directly and have their own foreign trade salesmen, they still have a number of disadvantages:

a. Inexperience. Many foreign trade departments are newly established, and foreign trade salesmen are also only newcomers to English, lack of experience, and lack of experienced foreign trade leaders.

b. Poor ability to judge risks. Of course, everyone is afraid of encountering such things as fraud, but it is even more frightening than the factory. Because there is no experience, people who can take board often do not speak English, and people who speak English often do not make the board. This tedious communication process is hampered. The foreign trade of the factory is smooth.

c. Less investment. Although the factory wants to export, it often does not dare/don't know or does not know how to invest. Foreign trade needs investment. And if there is no input, how can there be output?

d. The single product of the factory cannot meet the needs of some guests.

There are many reasons why the factory can now do foreign trade itself. It does not mean that the factory is robbing cakes with foreign trade companies. Everyone has his cake, the key is how we analyze and choose slightly, something to do.

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