Chinese vendors technics to catch a deal

Over those last 7 years of supply chain and manufacturing management in China, I have seen various technics used by Chinese vendor to lock a deal with overseas customers which sometime finally turn bad to the client.

One of the most common technics used by Chinese vendor to lock a deal is to cut down the price to attract its prey. Customer feeling confident in making a good deal send quickly their deposit to the Chinese vendor who start opening tooling, start development etc…

What come next is often the following :

1./ Whereas production is started the vendor would claim they have forgot to include something in their price

2./ Order after order the price of the manufactured product increase step after step, vendor will justify it most of time saying that usd versus Chinese yuan changed a lot or that china life cost is increasing

Customer are usually trapped and locked because their supplier hold the tooling, hold the sources of the project , have invested in development but don’t hold the ip (most of time Chinese companies will give a very low price to attract customer but then they will claim they keep the IP) and the client has no other solution than keep going with their current supplier.

I will explain in another future post how to deal with this kind of issue

And you, what is your experience with price rising over the time ?

About Christopher Oliva 77 Articles
Christopher Oliva is an Engineer based in Shenzhen since 2008 involved in Product Development, Supply Chain, Sourcing, Quality Management and Manufacturing activities. With a Msc Electrical Engineering and a Business Administration background, an ISO 9001 Lead Auditor Certification, a Six Sigma Certification and a Quality Engineering Certification, he works as a consultant on mission and contract oriented to Product Development, Manufacturing Management, Quality Assurance & Quality Management System setup. He works in the product development and engineering field, and as well as an advisor and quality consultant for several quality control and quality assurance companies.

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