Many Australian businesses believe they need to visit the Chinese factory that will manufacture their goods. Some people feel that meeting in person reduces the risk of importing while others think it’s the best way to do business in China. What they don’t think of is the cost and lost opportunities of staying home.
Save Time & Money by Staying in Australia
Vara Allied represents numerous clients each time we visit China. Our clients realise that it’s time-consuming and costly to travel, so they are happy to send us to visit China on their behalf. There are the obvious costs of airfare and accommodation, but it’s the other costs that aren’t as easy to calculate. While you can do some work and run your business while you are away, it’s not as easy as when you are in the office. You may be leaving behind staff members that need your assistance and clients that can’t easily contact you. The time a business owner spends away from their business can be the highest cost of a trip to China. There is also the inconvenience of leaving your family in Australia while you travel for business.
Established Relationships
Vara Allied has spent 12 years developing strong relationships with a range of factory managers in China. We may already have an alliance with a factory that can manufacture your product so there is no need for you to make a visit in person. We will continue to build the relationship by visiting the factory during our next visit, but we can get a quote today. You can enjoy the peace of mind knowing that the factory has high working standards and that you will receive quality goods delivered on time.
Our relationship also allows us to negotiate the best price for your manufactured goods. We have already negotiated excellent trading terms with our suppliers, so you benefit from these. A business owner is less likely to be able to achieve the same terms as we can or offer the regular, ongoing business and volume. It may take you many years to establish the same kind of relationships as we have.
Chinese Way of Doing Business
While you don’t need to spend months learning how to speak the language, you do need to know how to do business in China. Having good “guanxi” which roughly translates to good relations or connections is an important part of business in China. Vara Allied has established a wide network of suppliers in China. Without an introduction by a trusted source, many Chinese businesses will not deal with an unknown contact.
The way we do business in Australia is very different in China. You can easily offend your Chinese supplier without even realising it and put your business dealings in jeopardy. It is rare that you can travel to China for a quick meeting to close a deal and leave soon after. Your Chinese supplier will want to make a personal connection with you first which may involve a meal or karaoke. If you are under time pressures to return to Australia within a day or two, you may not be able to close the deal quickly.
With the world’s businesses visiting China, factories don’t have time to meet with every business owner. Factory owners favour their established relationships with importers. Individual business owners run the risk of returning to Australia without finding the right Chinese supplier or negotiating the best deal due to a lack of experience.
If you are looking for someone to go to China on your behalf or using their already established relationships, call Vara Allied on (08)
6115 0118 or contact us via email. We’ll be planning our next trip very soon.
