I just read a very thoughtful article on David Dayton’s blog: When your supplier is not arguing to win.
David gives a list of reasons why it’s so hard to get a Chinese manufacturer to deliver on spec, in time, and without last-minute price increases. In many cases, once a deposit has been wired, the battle begins…
My favorite parts:
7. There is no trust. You can’t resolve concerns and fix issues if you think that your counter part is actively trying to rip you off. Everything becomes either a fight or a conscious exercise in doing as little as physically possible to appease the other person without actually doing anything. If you’re convinced that the other party is lying to you even before you start negotiations, the chances of a healthy relationship and a mutually beneficial outcome are slim to none. We usually get to a “trusting” relationship with factories during order 3 or so.
Sad but true. Manufacturers are very focused on their short term gains. They can’t be sure there will be re-orders… But they know they will make more money this month if they screw a customer today.
9. Lack of individual rights. It really goes without saying that individuals don’t matter. The all too common “there are too many people in China” sentiment, I think, affects the attitudes of everyone here. The reality is that there are literally so many people waiting in line just behind you that no one really has time or desire to treat anyone well. Ditto for factories with thousands of customers from all over the world trying to order. If there is a problem and you’re throwing a fit and threatening contractual penalties, it’s just much easier for them to wait to have you leave than deal with you. If you’re already threatening to make it a legal issue then ignoring you is better than talking with you and acknowledging your concerns (only to have those acknowledgements used to apply legal penalties later).
Again, sad but true. A typical factory’s “after-sale service” is terrible. Many importers do not understand this, and are horrified by the lack of follow-up during production.
This article is worth reading in its entirety, by clicking here.