Factories are better than Trading Companies?
CPhI China Shanghai
01/08/2017
How to make trade show more effective? — for Attendees
05/01/2020Factories are better than Trading Companies?
People always have misconceptions that “Factories are better than trading companies.”
Is it really true? It depends.
Many importers or buyers prefer doing business with factories instead of trading companies just for one reason:
They think they can get a lower price.
Please pay attention to “ they think”. Do their ideas come true?
It may be true in some cases, but it isn’t always true. We’ll let you know in this article in what situation you should choose a trading company or a factory, which also called the manufacturer.
Someone will ask why we buy from trading companies, rather than factories, it depends on what you need and your own scale.
1. If you are a big corporation and your purchase order quantity of each item are all big quantities, you should find manufacturers.
2. If you are a big corporation but each of your order items quantity is not huge, you should find a big trading company, rather than factories.
You won’t get a good price because of your small quantity and you still need to pay more time on many affairs to talk with different suppliers, which means you also need to hire more staff.
So you should find one or two big trading companies, collect all your orders together and ask them to purchase all the items for you and you will save a lot of time and labor costs.
You only need to do business with one or two big trading companies.
3. If you a small company but you have a huge need for one or two products, you can find a factory or a trading company.
Why two options?
The factory option is easy to understand, why trading company?
You should realize that the huge quantity for you maybe not a huge quantity for others, especially for manufactures.
So you should compare not only the price between factories and trading companies, or distributors, also payment terms and delivery time, etc.
Just ONE RULE: choose the one which can save you time, energy and costs, the most important, business risk.
4. If you are a small company planning to order several or dozens of styles in small quantities, the best choice is really a trading company.
They will give you a suitable price and good service. If you really want to cooperate with a factory, you are to find that either the factory ignores you, or accepts your order without a good price you expected.
A reliable factory will be a big support to your business in the long term.
However, it totally depends on your business size.
So we think suitable suppliers are the right suppliers, maybe manufacturers, or traders.
What’s your opinion?
Is it really true? It depends.
Many importers or buyers prefer doing business with factories instead of trading companies just for one reason:
They think they can get a lower price.
Please pay attention to “ they think”. Do their ideas come true?
It may be true in some cases, but it isn’t always true. We’ll let you know in this article in what situation you should choose a trading company or a factory, which also called the manufacturer.
Someone will ask why we buy from trading companies, rather than factories, it depends on what you need and your own scale.
1. If you are a big corporation and your purchase order quantity of each item are all big quantities, you should find manufacturers.
2. If you are a big corporation but each of your order items quantity is not huge, you should find a big trading company, rather than factories.
You won’t get a good price because of your small quantity and you still need to pay more time on many affairs to talk with different suppliers, which means you also need to hire more staff.
So you should find one or two big trading companies, collect all your orders together and ask them to purchase all the items for you and you will save a lot of time and labor costs.
You only need to do business with one or two big trading companies.
3. If you a small company but you have a huge need for one or two products, you can find a factory or a trading company.
Why two options?
The factory option is easy to understand, why trading company?
You should realize that the huge quantity for you maybe not a huge quantity for others, especially for manufactures.
So you should compare not only the price between factories and trading companies, or distributors, also payment terms and delivery time, etc.
Just ONE RULE: choose the one which can save you time, energy and costs, the most important, business risk.
4. If you are a small company planning to order several or dozens of styles in small quantities, the best choice is really a trading company.
They will give you a suitable price and good service. If you really want to cooperate with a factory, you are to find that either the factory ignores you, or accepts your order without a good price you expected.
A reliable factory will be a big support to your business in the long term.
However, it totally depends on your business size.
So we think suitable suppliers are the right suppliers, maybe manufacturers, or traders.
What’s your opinion?
