{"id":209,"date":"2012-10-24T19:37:12","date_gmt":"2012-10-24T19:37:12","guid":{"rendered":"http:\/\/daileytravelservice.com\/blog\/?p=209"},"modified":"2012-12-12T16:49:35","modified_gmt":"2012-12-12T16:49:35","slug":"how-to-tell-you-are-dealing-with-a-factory-or-a-trading-company-in-china","status":"publish","type":"post","link":"https:\/\/daileytravelservice.com\/blog\/2012\/10\/24\/how-to-tell-you-are-dealing-with-a-factory-or-a-trading-company-in-china\/","title":{"rendered":"How to Tell: You are dealing with a factory or a trading company in China?"},"content":{"rendered":"

\"\"<\/a>Whether you go to a conference or exhibition in China, or search for a Chinese company online, many people worry about or don\u2019t know if they are dealing with a factory or a trading company. How to differentiate these two? I am sharing some important tips here and I hope it is helpful. It is essential for you to learn them. In fact both factory and trading company have its own advantage. In the end, who you decide to work with largely depends on your experience and what kind of risks you are willing to take. Each circumstance is different; therefore we don\u2019t recommend one solution for all.<\/p>\n

1.\tThis is the most import one among all tips: Only a few large factories in China have the licenses to trade with overseas companies directly; therefore most factories must rely on trading companies as the middle men to carry out the transactions. License to export is required by China\u2019s policy and the policy has been in place for a long time. So ask a factory or a trading company to show you the license, this is a must.<\/p>\n

2.\tOf course the product is what you want. Find out how good the quality is early on will help you make decision and save big in the future. So ask a lot of questions.<\/p>\n

3.\tAsk for a business card, normally the business name will be on it. If it is a factory (\u5382\u6216\u5de5\u5382), it will say so. If it is a trading company\uff08\u8d38\u6613\u516c\u53f8\u3001\u5916\u8d38\u516c\u53f8\uff09or import or export company (\u8fdb\u51fa\u53e3\u516c\u53f8), it will say so too. Therefore you can tell from the name, it\u2019s the easiest way.
\nNote: If you don\u2019t know Chinese, I recommend you to learn some key Chinese words for your business. You will find it to be very beneficial!<\/em><\/p>\n

4.\tA factory is able to provide you the original product certificate (CE) while a trading company normally doesn\u2019t have it. The CE would clearly state which factory this certificate is issued to, match the name on the certificate with the business name.<\/p>\n

5.\tAsk for pictures of how the product is made, again a trading company normally doesn\u2019t have that information while a factory may be happy to show you.<\/p>\n

6.\tA trading company may provide products from various different industries while a factory may provide products for only one industry. This may not be true for all factories, however a large percentage of the factories fall into this category.<\/p>\n

7.\tAsk to visit the factory to see it by your own eyes how the product is made and the factory environment. A true factory would be happy to arrange a visit fairly quickly while a trading company may take a while because it has to go through contacts to make this special arrangement for you. So you can test the business to see what the reply will be.<\/p>\n

8.\tIt is always a good idea to get a quote from three vendors regardless it\u2019s a factory or a trading company. Only then, you will have a better handle of pricing.<\/p>\n

9.\tYou should know that even though a factory may give you the lowest price and it usually has some rooms for you to negotiate to lower the price furthermore, while a trading company may give you a higher price because it needs to make a profit, a factory may ask you to purchase the product in a huge quantity. Do you need that much quantity?<\/p>\n

10.\tA trading company may be more responsive to your request when issues occur because it wants to treat you their customer nice thus to confront with the factory on your behalf, while a factory may be somewhat difficult to deal with or delay responding you.<\/p>\n

11.\tUnlike a trading company who is very familiar with overseas orders in terms of communication, negotiation, goods in stock, custom form and shipping, a factory may not have the experience or resources thus a factory is more likely to make mistakes.<\/p>\n

I would recommend you to consider all facts and balance pros and cons; then you will have a good feel for what\u2019s the best for your situation. As you acquire more experience dealing with Chinese companies, your preferred method may change too.<\/p>\n","protected":false},"excerpt":{"rendered":"

Whether you go to a conference or exhibition in China, or search for a Chinese company online, many people worry about or don\u2019t know if they are dealing with a factory or a trading company. How to differentiate these two? I am sharing some important tips here and I hope it is helpful. It is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47,46,48],"tags":[21,19,50,47,49],"class_list":["post-209","post","type-post","status-publish","format-standard","hentry","category-china-trading","category-factory","category-tips-for-business","tag-china","tag-china-and-usa-differences","tag-china-business","tag-china-trading","tag-import-and-export"],"_links":{"self":[{"href":"https:\/\/daileytravelservice.com\/blog\/wp-json\/wp\/v2\/posts\/209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/daileytravelservice.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/daileytravelservice.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/daileytravelservice.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/daileytravelservice.com\/blog\/wp-json\/wp\/v2\/comments?post=209"}],"version-history":[{"count":7,"href":"https:\/\/daileytravelservice.com\/blog\/wp-json\/wp\/v2\/posts\/209\/revisions"}],"predecessor-version":[{"id":222,"href":"https:\/\/daileytravelservice.com\/blog\/wp-json\/wp\/v2\/posts\/209\/revisions\/222"}],"wp:attachment":[{"href":"https:\/\/daileytravelservice.com\/blog\/wp-json\/wp\/v2\/media?parent=209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/daileytravelservice.com\/blog\/wp-json\/wp\/v2\/categories?post=209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/daileytravelservice.com\/blog\/wp-json\/wp\/v2\/tags?post=209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}