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Q:
Why Should I choose
Convergent Sourcing over
other sourcing companies or
going direct to factories
myself when sourcing
promotional products, retail
products, giftware or
construction products?
A:
• Customs Risk:
Most factories and many
trading companies are
unaware of customs and
regulatory requirements for
countries outside of China.
Customs holdup and
unforeseen duty charges can
be more the norm than the
exception.
• Price: Just because you¡¯re
going factory direct doesn¡¯t
mean you¡¯re getting good
pricing. Factories that go
direct to the Western
end-user markup their
pricing significantly. Keep
in mind that factories with
robust marketing departments
have robust marketing
budgets to cover, and this
impacts your bottom line in
unit cost.
• Opportunity Cost and
Economies of Scope: If you
go with only one or a
handful of suppliers, you
can miss out on other new
products that your current
supplier is unaware of or
cannot produce. Let us do
your homework for you so you
can focus on bringing in
sales.
• Many companies who
advertise themselves as
factories in China are not
even factories ¨C they¡¯re
trading companies (AKA Shell
Factories). One associate of
ours visited the same
factory four times with
different trading companies
who all claimed to own the
same factory.
Q:
Why Should I choose
Convergent Sourcing over
other US-based sourcing
companies?
A:
As a HK/China
based sourcing company, we
leverage lower wage rates
and develop technology
infrastructure to give us a
significant cost advantage
over US trading companies.
Our operating costs are a
fraction of those of US
sourcing companies, and we
pass this cost savings on to
our customers. We frequently
under-price US based
sourcing companies by 40% or
more.
Q:
I like to develop
products directly with the
manufacturer ¨C doesn¡¯t this
ensure I¡¯m getting the best
deal?
A:
If you¡¯re dealing with a
domestic producer, this is
most likely not the case.
If you¡¯re dealing with
overseas contract
manufacturing, you could be
opening Pandora¡¯s Box. Want
to try developing a product
cross-culturally and
remotely with a non-native
English speaker? Plan on
more than one revision.
• Developing direct with the
wrong supplier can be more
than just an exercise in
futility, it¡¯s usually
downright expensive when you
count setup cost
overcharges, multiple
revisions, and time wasted.
• If you have any
proprietary technology or
design in your product, this
is perhaps the most
dangerous way to develop a
product. Under current China
law, only contracts written
in Chinese are legally
binding, which means your
current NDA is largely
ineffective.
Q:
Won¡¯t I get a
better deal by sourcing from
a Chinese trading company?
A:
• We usually beat
the pricing of Chinese
trading companies. Many
Chinese trading companies
have layers of suppliers and
buy from downstream
providers on many
categories.
• Never confuse price with
value. If you get a product
for a discounted price and
you have to rework, you may
have lost more than the just
the cost of rework, you
might even lose your
reputation. Other hidden
risks and costs include
unforeseen inspection
holdups, taxes, fees, and
customs issues. Remember the
Tomas Tank Engine Train
fiasco?
Q:
My current domestic supplier
is fine, why should I move
upstream and bear the risk
of the unknown?
A:
• The global economy is
flattening, and those who do
not adapt are subject to the
market forces created by
those who do. We have a
market tested supply chain
and are already sourcing to
companies who are enjoying
the economic benefits of our
converged sourcing services.
Q:
What are Convergent
Sourcing¡¯s Terms?
A:
• Initially, on smaller
projects, we require a 50%
deposit with a balance due
upon delivery or LC at site.
For larger projects, we may
require 30% deposit and 70%
before shipping, depending
on the category.
• Long term customers enjoy
negotiated terms and
privileges.
Q:
What is the minimum order
for Convergent Sourcing?
A:
• Convergent Sourcing¡¯s
minimum order requirement is
USD2000 in low season and
USD5000 during peak season,
depending on the product
being sourced. We do
recommend larger orders so
we can save you more through
economies of scale and
stronger bargaining
leverage.
Q:
What is Convergent
Sourcing¡¯s sample policy?
A:
• We have a $150 sampling
fee, plus the factory cost
of the samples themselves
• Custom samples take about
2-4 weeks on average. Stock
samples take about a week or
more.
• If the samples turn into
an order we discount your
sample cost from your order
Q:
How do we send you our
artwork or other files?
A:
Artwork can be sent via the
inquiry page by clicking the
¡°Upload then Submit¡± button.
You can attach up to 10
files. We recommend using
jpg for reference images,
doc,xls, or pdf for
reference docs, .eps for
logos or vector graphics, .dwg
for schematics, and .ai or
pdf for printing, catalogs,
or custom packaging. |
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