Case study | How much can you save by cooperating with China manufacturers?

MOUS specializes in creating phone accessories that were extremely protective yet beautifully crafted.

Mous found an Alibaba supplier-Shenzhen Taiworld Technology Co., Ltd., and purchased 13000pcs vent mount from the supplier in 2018.

Here are the product details:

Folded size: 19.7×19.7×9.2 cm

Expanded size: 19.7×19.7×97.4 cm

Adjustable length: 36 – 97.5 cm

Weight: 960 grams

4 Wind speed levels

180⁰ horizontal rotation

7200mAh Li-ion battery capacity

Battery life: 5 to 24 hours

Charging time: 4.5 hours

USB charging

And here are the order details:

custom logo

gift box packaging

clear circle sticker

50pcs/carton

shipping mark

Quantity:13000PCS

Unit price: 1.80USD/PC

Amount: 23400.00USD

Two months after MOUS received this batch of goods, MOUS found that this order’s purchase cost was too high, which made the gross profit of one of their products only about 10%. So MOUS decided to switch to another supplier instead of purchasing from Shenzhen Taiworld Technology Co., Ltd.

MOUS accidentally discovered Justchianit while watching YouTube. Justchianit is a Chinese company that verifies suppliers and provides procurement services. MOUS found that Justchianit can help customers verify suppliers and find cheaper and high-quality product manufacturers, which makes MOUS very excited. So MOUS asked Justchina to provide the service with the mentality of giving it a try.

After Justchinait’s verification, Shenzhen Taiworld Technology Co., Ltd is not a product manufacturer, but a trading company, so they will add 15-30% profit to the manufacturer’s price. Justchinait recommended a product manufacturer. Under the same order conditions, the manufacturer’s price is 1.25USD/PC.

This means that MOUS can save $23400-$17247=6159USD for this order

26% have been saved!

Tips:

If you pay special attention to the price of the product, then we recommend that you find a product manufacturer instead of a trader from China. Traders usually add 15-30% profit to the manufacturer’s quotation, and then quote the price to you. But 80% of suppliers on Alibaba are traders, not manufacturers. When you select a supplier, you must evaluate it carefully. 

Purchase Skills | How do I find a factory&manufacturer in China? What are the characteristics of a real factory?