hastkala Level 1 asked 2007-04-02

Do manufacturers have better price than trading companies? 0

Question Category: Other Trade Processes Views: 143

Where can we get the best prices? Manufacturers or trading companies? Doing business with different companies in the world, how is it possible to identify if the person is a manufacturer or a trading corporation? I believe that basically manufacturers must have better prices than trading companies. But it is not

In addition to searching the Internet, which I suspect you already have done to find out whether or not the corporation has a legitimate website, you should also conduct thorough research including registration with trade agencies and industry associations.

As to the second part of your question, in some instances you might be able to get a better price from a manufacturer than from a trading corporation, but not always. Manufacturers also give good prices and terms to trading companies to remain competitive. Because most trading companies have good buying power they might also be able to negotiate a better price that they can offer buyers.

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Other Answers 4

  • horizo 2007-04-02 Best Answer

     They may give better price:

     1)But when they looking after the tradeing,service and other works,they have to provide man power and overheads automatically the price will increase

    Trader, not only sell these,he may have more tradeing products

    so he will manage man power,service and other works

    so his overheads will be distributed,he is able to pay less

    So in my opinion trader will able to manage and provide better price than the manufcturer
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    • cgs_devon 2007-04-12

      Replying to [Hastkala]:
      Yes, you can get better price,higher quality,better services from the manufacturer than trade companies.
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    • chinastin 2007-04-05

      Replying to [Hastkala]:

      Partly right. In China, for some products, their factory prices are surely better than trading company's as the trading company has to profit a lot sometimes, like ectronics, but for some other products, I totally agree with the above guy. ....Another issue is that, most of Chinese trading companies pretend to be a real manufacturer in China. Also for sake of better quality control, we suggest you'd better deal with real factories directly. [em1][em1]
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    • motosfouryou 2007-04-02

      Replying to [Hastkala]:
      We know many trading companies sell products in China, if we know that a supplier is acting as this and buys from the factory this is the first stage, if the supplier keeps this information or makes it feel that they are the factory then only verification services process would tell us more.
      I am sure many trading companies can give great prices to the buyers, and in some cases maybe lower than the factory due to their exports volume from China.

      Buyers would have a better choice in products, and maybe they can have mix products in a container and the trade co would arrange this delivery to one location for loading.

      If a buyer wanted to buy 5 types of products from 5 factories, you would need to comminicate with them all, and send 5 deposits as T/T payments and then 5 payments as balances, this would give you more cost of about $400 for the transfers?

      The communication to get the factories to load to one container will not be a easy task, as only one will be the delivery point and arrange the export documents for the container. so we need to think about this in more detail.

      This is how the trading company can help us more, they can also act as quality control for our production as a 3rd party, the factory will have their own quality checking systems and the trade co can arrange the master visit.

      The comunication to the trade company can be better, be depends on the company?, rememer they have to communicate again to the factory, and many times maybe they don't have fast answers for you until they talk to the factory direct.

      the warranty can be a point to remember, you have to contact the trade company for any issuess for customer services and the trade company is the buyer from the factory not you, so they need to sort any parts or returns to be made to you.

      in my opinion, the trade company needs to provide a better service than the factory, better communication and great product range. The buyer must have many reasons to use the trade co and not direct to the factory. [em17]
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