• Last Updated:
  • May 10th, 2011 1:04 pm
Deal Addict
Mar 8, 2009
1420 posts

Buying from Chinese supplier?

I've found something I need to buy for my business from a manufacturer in China. It's going to cost about $7000 and was wondering if I could negotiate or do manufacturers in China not do that? Also, they want 50% when I place the order the final 50% when they ship, both through bank transfer. How do you protect yourself from being ripped off? Any advice in dealing with China is appreciated.
2 replies
Deal Fanatic
User avatar
Aug 16, 2007
6807 posts
I did a similar thing last year - You can pay small one man companies in China to go to their factories and check everything for you. Rather than doing this, I told my contact that I had a contact in the Chinese Government that was going to inspect their factory. I had them set up a meeting and expect them. They were OK with this, and set everything up (i.e. we set a time, etc.) Then a week ahead I cancelled (as I didn't have one anyway). Figured if they didn't make any excuses and cancel, etc. then I'd be all set (Unless they called my bluff).

Now one thing I DID get screwed on was the freight - I wanted it to be easy, so I did FOB Toronto. Turns out the factory didn't pay the shipper - so the shipper put an "Overseas hold" on my shipment when it got to Toronto. It was sitting in Brampton in a warehouse for 8 days before they got their stuff figured out - and when I went to pick up I got dinged for $1000 in storage fees - nothing I was saying or doing was getting me out of it either. I either tried to fight it and it stayed there at like $100 a day, or I paid my money and tried to get it back from China (not even a remote chance that was happening)

All I can recommend is get a solid freight forwarder here who is bound by Canadian law - if I did that I would have been fine as they would have been the ones responsible and I could have gone after them....
Deal Addict
Jun 20, 2006
2160 posts
i like the contact idea
thought about it
perhaps you can start small, instead of doing $7k first shot do $1k
if all goe smooth jump gradually and build trust
recommend alternate method of payment ie credit card or paypal even if it costs you 3% extra
for larger amounts >$10k you can consider going there yourself
enjoy the trip, scenary, food and write a cheque or draft (one that can be on hold or reverted)
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