Chinese factories closing down
Published:2016-03-22 13:00  Views:

Chinese factories closing down By Wu Zhiguo
Copyright © by DiPRO Acoustics Co., LTD
Published at www.diproacoustics.com  all rights reserved.
 
 
Chinese factories closing down
 
Every day I received news from Chinese QQ pop-up news or wechat moment sharing about Chinese factories closing down.
This is truth,
And I believe that 2015 is the toughest year for most companies,
You know what,
Actually,
Each year, a bunch of Chinese factories closing down, so does other countries.
 
What the most important is you are not going to place an order to closing-down-company.
Buying safe become more important, I just mean buying safe, there is no from China at the end of the sentence.
 
This article may help most small business who could not or not often travel to check the factories by themselves.
 
5 factors to buying safe:
 
1.      Spend 500USD for a factory audit by a thirty party
Factory audit report will help you to make decision if you could trust or the right company you need.
 
How to find the right factory audit companies? This is another topic,
The biggest and most famous are ITS, SGS and BV, if you are small business, this is also not the best for you.
As you may pay triple for a factory audit which you do not want to spend that much on it.
 
2.      How long they have been in this business.
If you cooperate with a factory which in a certain field for over 5 years, over 10 years, which is much safer than a new found company.
Each product range have many big or small companies focus on a certain field for many years.
 
3.      How much money they investment on product?
They may have at least more than 3 private tooling / design on the product range they focused.
 
4.      The boss world view, life values
This may sound like a bizarre, but very important, because their values will affect their company value and direction, and affect how they treat customers, product, and responsibility.
 
5.      get to know BOM-Bill of Materials:
Only factory audit you could pay for it, the following 4 factors you have to talk with supplier yourself, especially BOM.
I have doing my own business since 2008, not single one customer asked about BOM, the most I heard is:” your product is good, but the price is over our budget.”
Well, the problem is your budget is wrong, unreasonable.
Let’s check below BOM:
 
 
 
This is a mono Bluetooth speaker BOM cost, left gray color is better quality, right yellow color is “less-better” quality.
Yellow price is the fact how 3USD Bluetooth speaker is made of.
 
You may feel this is way too complicated, others do the same quality and has cheaper price than you.
The question is do you understand each materials?
If you understand the materials, you will be carefully with it.
It is you do not understand materials, so price is the only way to for you to make decision whether this is a better buying decision.
And it is you do not understand materials, so you made the decision, and suffer from the consequence: high RMA rate, battery explosion, high-return rate etc.
 
One words come to my mind, the right attitude is the only way for safe buying.
There are several words come to my mind, attitude, responsible, profession, marketing.
Ignore the rest of the words, attitude is the most important.
 
Actually, these are great ways to know if the companies are trustworthy, especially everybody is talking about Chinese factories closing down.
Hope above tips could help you buy safe from China, and buy safe anywhere in the world.
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Company Web: http://www.diproacoustics.com/