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Path: Sourcing News & Advice
>> Import from
China Advice >> Why suppliers in China quote
incorrectly

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Why suppliers in China quote incorrectly

Posted: July 14, 2014

by Jacob Yount

If you have experience in importing from Chinese suppliers, you know it’s
very common that quotes are not handled with precision.

There are some basic yet deep-rooted reasons why suppliers in China quote
incorrectly.

Precision: Suppliers in China do not quote with precision. The mindset
is that the initial quote is not something that is going to make or break the
project. The quote is viewed as sort of the starting point of discussion.

Details and specifications are not something firm that can readily be
concreted and confirmed. Facts are “loose” and require back-and-forth.

Western buyer thinks: the quote needs to be as exact as possible so I
can quote my buyer or rock n’ roll on these numbers so that we can close the
job. Let’s get this right and get moving!

Chinese supplier thinks: here’s the quote and if it’s not exact or if
you find any mistakes, holler back at me and we’ll get you fixed up.

From the suppliers’ mindset, nothing rides on that first quote. Whether or
not you come back isn’t based on their quoting method.

The concept of going through an inquiry “with a fine-tooth comb” is not a
common practice with suppliers in China.

The salesperson you work with from the supply company or factory doesn’t
spend much time proofreading the quote or assuring they are quoting as per your
specifications.

Remember, most suppliers in China obviously have a China-centric view of
doing business. How the majority of business was done for decades in China is
that if you want to buy from someone, you’ll go visit them. You know them, you
sit down with them.

Suppliers in China Don’t Read Emails: Suppliers simply to do not
read and process the entire inquiry you emailed. If the RFQ has 8 critical
points, they may retain 5. The language barrier is a part of this but not the
main issue. Connected to the above concept of precision, suppliers quickly scan
the email and think they got it and then act based on incomplete
information.

The supplier doesn’t think that this email is in English and I better read it
with extreme care. Since the email is in English, it actually causes them to be
less thorough.

They Don’t Understand the Inquiry: We all have questions and there is
no shame in that. The problem is that when suppliers have questions, typically,
they won’t ask!

They will usually make up an answer to any unknowns and go with that. Or in
typical China fashion, when there are points that should bring up red flags, the
suppliers do not realize that they should even have questions! This is where cultural
aspects can affect manufacturing success.

A
silent supplier is one that is not highly engaged with the project. If the
supplier doesn’t have questions, let that bring up red flags.

Assuming on the Request: The supplier generally starts off from the
point of assuming that what you’re requesting is the same as what everyone else
requests.

If they normally quote for the low-cost markets, but you’re asking for a
higher-end product and you give the supplier specs for a higher-end product –
then guess what… they are still quoting you a lower-end item because that’s what
they normally do.

If your inquiry requests 1 unit per inner box packing and the supplier
generally packs in bulk – then guess what…your quote is based on bulk packing.
The suppliers can get stuck in a to-do list mentality from the mass amount of
quotes they send out to importers. Which leads to my final point…

Correct Quoting Requires Investment: Lastly, and this is the area
where I can more empathize with the suppliers in China; precision and
carefulness require a time and energy investment (therefore cost
investment).

If you never worked with this supplier before how do they know it’s worth the
time and energy to quote you as exact as possible?

Have you requested frequent quotes from the supplier with a low ratio of
closing the deal?

How important of a buyer are you to this supplier?

Does your inquiry have
the “punch” that makes a supplier want to
work with you?

Jacob
Yount lived in China from 2001 to 2012, during which time he started JLmade.
He is now based out of North Carolina in the US and his home office is still in
Suzhou, China; manufacturing and exporting branded merchandise, promotional
products and retail gifts for distributors worldwide. Contact Jacob at

This email address is being protected from spambots. You need JavaScript enabled
to view it.

, or find him on his blog.

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