Bargaining Price and Switching Factories in China with Peter Zapf

Michael MicheliniBusiness, Manufacturing, Podcast2 Comments


Happy Tuesday morning everybody – so all of you have been asking me a lot for the “how to get a China e-channel” as a foreigner, it definitely is VIP treatment – so I wrote the blog post over the weekend, you can check it out at www.globalfromasia.com/chinaechannel and learn how to apply for one yourself!

Trade show season is coming up quick! Seems like April’s (Spring) edition just passed, but already October is coming and there will be more and more activities for trade show attendees. I will be a busy bee – as I’m going to DCBKK in Bangkok, co-hosting a DCxHongKong, and in an EnterChina.co meetup in Guangzhou.

As well as – which connects today’s show, returning again at the 2nd Smart China Sourcing Summit by Global Sources. We’ll talk about that more during the show – which is Peter Zapf – back on and this show is really a more advanced one – but one I haven’t heard online much before. He was on episode 79 talking about China trade shows and on episode 111 talking about the evolution of Amazon FBA and how it has changed the game for China sourcing.

Switching factories, price negotiating! I feel we talk a lot about finding a factory – but what happens when you are already doing business with one? You will want to bookmark, you can head on over to globalfromasia.com/episode138 to save it .

Today Pete gives us some insights and I am sure this will be a helpful show for those already dealing with factories looking for some more middle to advanced ideas. enjoy!

Welcome back Pete – always a pleasure to have you on the show – 3rd time now thanks for that!

Topics Covered in this Episode

  • Intro Pete

    For those who missed episodes 79 and 111, care to give a quick intro for everyone Pete?

  • General Mindset

    So today, I am really excited for this topic – price bargaining and factory switching tactics – will definitely be a top podcast I’m sure. So – what is the general mindset when bargaining price with a factory?

  • Price as a Factor

    I know, you shouldn’t pick a factory on price alone – but there are listeners who tell me that they KNOW their competitors are getting a better price, and that just hurts their bottom line. When do you feel price become a factor in your business?

  • Price Level

    So let’s say a buyer is browsing the Global Source trade show floor, and gets a price – would that generally be higher or lower than if they were to contact the factory online?

  • Price Increase

    We have all experienced it, you do the first order, and maybe the second no problem. But suddenly your factory sales rep tells you that the material costs have risen and the price has to go up. What are your options here?

  • Making the Switch

    Many listeners and friends I know – they feel stuck. They invested in this factory – time, energy, IP, maybe a mould. Can they really switch?

  • Strategy

    Others try to have a couple different factories they are buying from, so they can play one off the other, or have a plan B at least. Good strategy?

  • How does switching factories look like?

  • Delay Buying

    Do you tell the factory, or what I believe most do is just tell the factory they are not ready to re-order yet, and keep delaying the process. How should it best be done?

  • Multiple Factories

    But I know a lot of listeners are smaller quantity buyers, maybe just barely hitting the 1,000 piece MOQ factories demand – so how realistic is it to have multiple factories for them?

  • Preventing Competition

    This is just a really delicate topic, and I think the real best answer is to keep a good relationship with your factory. But there are these dangers in Chinese business where you don’t want to upset them and have them competing with you on Amazon or other places. How to best prevent the old factory from being your number 1 competitor?

  • Pete's Trade Show and Summit

    Of course, listeners who are serious about buying from Chinese suppliers should attend the Global Sources Trade Show this October, as well as your 2nd Smart China Sourcing Summit – care to fill everyone in on that event and what it’s all aboutMuch appreciated Pete!

People / Companies / Resources Mentioned in this Episode

Episode Length 38:41

Thank you Peter, delivering superb value. This is a tricky point, already doing business with a factory – what do you do when you’re stuck and want to switch? I’d love to hear others sharing strategies on the comment section at globalfromasia.com/episode138

And I hope to catch up with some of you for the busy October Trade show season. I’ll be at the Smart China Sourcing Summit there with Pete, link in the show notes. There is a enterchina.co meetup in Guangzhou. Chris Davey hosts amazing Amazon FBA meetups as well – 2 of them this year I’ll link to that as well .

So again, there is a ton of stuff on today’s show – hit up globalfromasia.com/episode138 for the links!

We got a review! Checked and found it from Karsten – who was on our show as well – thank you Karsten it’s a long one and I’m going to read it out

A knowledgeable, humble host spills the beans on Hong Kong — 5 stars
– by Karsten Aichholz from Thailand on Aug 9, 2016
Michael knows what he’s talking about. His expertise on Hong Kong is only matched by his humbleness about it. What he knows, he shares and what he doesn’t, he’s honest about. It makes his advice and voiced thoughts a lot more dependable than others whose main objective is to only appear knowledgeable (even at the cost of authenticity or potential misinformation). If you’re thinking of doing business with Hong Kong and other places in the region, his podcast is a great place to get started.

This is much appreciated – you guys are all more than welcome to leave a review- globalfromasia.com/itunes is a fast way to do it!

Til next week everyone – I’m loving this show – we have a ton of great guests already lined up and ready to go!

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Chris T
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Chris T

Great Podcast episode Mike and Pete, really enjoyed listening!