In all the years I’ve been in the health and wellness industry, I have never seen a company that doesn’t hire a managing partner or a procurement service. They will often provide these services for free. There are many reasons why they do this. The first one is that most small companies don’t have a dedicated person in charge of procurement. In fact, only the largest companies can afford to have someone on staff who solely handles procurement activities.
So, most manufacturing companies are searching for a Chinese sourcing company to take care of all their supplier needs. It makes a great deal of sense for them to hire a sourcing company because they can manage all aspects of the sourcing process including shipping, production, and logistics. So basically if you don’t need to oversee the entire process but instead only wish to focus on growing and developing your business then it makes sense to hire a Chinese sourcing company. However, if you have a large company with multiple locations then you might consider hiring a full-time staff member that specializes in Chinese sourcing. These are just some of the reasons why manufacturing companies use Chinese sourcing agents.
But what about small companies? Are they better off conducting business with a small Chinese sourcing company? Let’s see what the pros and cons of small Chinese manufacturing companies are India manufacturing.
With a smaller supplier, you may be able to cut back on costs because they won’t need to maintain a large factory in China. They don’t need as many employees because their operations can be conducted at home with a few employee positions. When dealing with a smaller supplier, it’s also possible to negotiate a better price because negotiating with Chinese suppliers is less formal than dealing with American or European companies. So it’s a good idea to strike a deal with a Chinese supplier based on a better price rather than basing the whole decision on the quality of the products.
Small sourcing companies usually don’t have very large offices or operations so they aren’t afraid to spend money on advertising or pay for PR campaigns. Because of this, it’s more likely that you can get a better price when dealing with a small Chinese supplier. You might not even need to advertise your products to get your business sold. If the Chinese supplier you’re working with isn’t too big, they might not even know about it.
On the other hand, dealing with a bigger Chinese supplier will also mean that you have more bargaining power. Bigger companies can afford to give better rates because they have more resources and can afford to pay higher rates. With a smaller Chinese supplier, you may not have nearly as much leverage when negotiating prices and getting commitments from them. So when you’re looking to work with a sourcing company, be sure to negotiate the best rate possible for your business and only deal with those who are willing to offer reasonable rates.