knee pillow factory

How Can You Tell If A knee pillow Supplier Is A Factory Or A Trader?

In China, 30% of knee pillow suppliers in domestic trade are factories, 10% of suppliers in international trade are factories, and the remaining 90% of suppliers are knee pillow traders.

As long as you have done international knee pillow business, whether in a factory or a foreign trade company, no one does not ask if you are a factory?

But you just ask the knee pillow supplier to ask if it is a factory.

Almost 100% of suppliers will say that they are knee pillow factories, and 90% of knee pillow suppliers are lying.

Most traders have been pretending to be factories.

Why do people say they are factories?

Because most customers still think manufacturers are cheap.

From a commercial point of view, the customer originally didn’t care about whether his supplier was a factory or a trader. The customer cares about who can maximize their own interests.

But in China’s foreign trade industry, most traders are just foreign trade porters. They are using information asymmetry to make money. The value that can be provided cannot resist the temptation. Low prices, company brand and reputation can’t provide trust at all.

In this case, as a customer, the best decision is to try to find a lower cost knee pillow supplier.

So should we choose a pillow factory or a trader?

Regarding the factory, everyone of us knows that the price of the factory will be cheaper. If we can directly place the knee pillow order to the factory, then you can save at least 30% of the purchase cost.

Regarding traders, traders who have existed in the market for so many years must have a reason for their existence, so we study this topic in this article.

Table of Contents

Why does everyone say they are a factory?

What is a factory?

How does a factory work?

Strengths and Weaknesses of factory

What is a trader?

How does a trader work?

Strengths and Weaknesses of factory

How to distinguish between factories and traders?

What kind of situation should you choose factory?

What kind of situation should you choose trader?

Advice

What is a trader?

It is an intermediary link between factories and customers to promote the occurrence and realization of buying and selling activities by participating in the commodity trading business.

There are three main characteristics.

1. Diversified product varieties

Intermediaries generally sell products from multiple manufacturers at the same time and do not have the ability to independently develop products. Although customers can compare products from multiple manufacturers in one intermediary, which saves a lot of time to communicate with each manufacturer individually, there is little demand for product types. For customers, it’s not worth it. They should put more money on product orders.

2. Product inspection

The middleman will inspect and inspect the manufacturer’s production process when purchasing goods to determine whether the product is qualified or not. This series of work can indeed prevent disgusting manufacturers, but good factories will retain perfect products. Once a customer’s order is found in a trustworthy factory, the cost incurred due to the additional inspection work is unreasonable for the long-term cooperation business.

3. High additional costs

When intermediaries provide products and additional inspection work, they will charge high additional fees, usually around 8-15%. Obviously, the initial entrepreneurs did not have more money to acquire more product categories.

How does the trader operate?

Traders generally select a large category, such as memory foam products, and then collect suppliers in this field, collect their quotation sheets, select some products they think have potential, integrate them, and form their quotation sheets.

Then find manufacturers to ask for samples, shoot pictures and videos, upload them to the B2B platform, once a customer inquiry, immediately contact the corresponding factory, get the quotation from factory and add bout 50% for profit, and then quoted to foreign customers.

Once customers confirm the order, after receiving the customer’s deposit, then use that money pay 30% of the deposit to the factory, arrange production, basically, all the work is outsourced to the factory, the trader only focuses on marketing and customer service.

The advantages and disadvantages of traders

Advantages

1. Rich product series

A trading company will select multiple factories to form one category or multiple products for sale, and even a product will select products with multiple specifications from multiple factories to sell in combination.

2. The trading company has fast delivery time and small order quantity

After the trading company gets the goods from the factory, they usually store it in their own warehouse, and then slowly digest the inventory.

Some small customers will not have too high orders for certain products, but the categories will be very mixed, and customers will choose to cooperate with trading companies. After all, trading companies must sell more than one product to customers, often two, three, or even more than a dozen products. , The quantity is small, but there are many varieties. They are all ready-made, and customers can buy them.

The other is time cost. Many trading companies are seeking cooperation to purchase spot goods. They need to buy products quickly. Time is money and income for them.

Disadvantages:

1. Higher prices

Trading companies can provide customers with a variety of products, but their price is very high.

2. Weak after-sales service ability

Since buyers only communicate with traders, once communication problems occur and the production of the products does not conform to the buyer’s design concepts, the after-sales service capabilities of traders are not as good as those of factories.

What is a knee pillow factory?

The factory is also called a manufacturing plant or production enterprise.

It is a production line composed of machines, equipment and workers, used to produce goods.

Knee pillow factory specializes in the production of knee pillows.

Generally has three characteristics.

1. Lower prices

Since factories are generally located in relatively remote suburbs, rents in these places are relatively cheap. Once the customer directly docks with the factory, not the trader. Then the price of the factory will be 8-15% lower than the price of the trader, or even higher.

2. Strong after-sales service capabilities

Since the factory directly controls workers or machines to produce goods, any product and after-sales problems can be resolved through timely communication. Traders’ commodities are generally purchased directly from factories, instead of producing commodities through orders like factories, so traders cannot control the after-sales issues of commodities.

How does the factory operate?

Today, about 80% of the production is based on knee pillow orders, and 20% is e-commerce production.

Order-to-order production is to accept customers’ knee pillow orders before starting a series of production and control activities such as purchasing raw materials, preparing equipment, worker training, equipment, manufacturing, testing, performance debugging, product testing, packaging, and storage.

E-commerce production starts from sales planning and production, and then puts it on some B2C platforms, such as China’s Tmall, JD.com, Taobao, Pinduoduo, and international ones such as Amazon, eBay, Shopee, etc…

The advantages and disadvantages of the knee pillow factories

Advantages:

1. Lower product prices

A factory will not make too many categories of products, but will choose a single or similar category of products for production, so as to avoid spending more money to buy redundant machinery and equipment, but also to control the price of the product. Low to maximize profits.

For example, a foreigner purchases a memory foam knee pillow, and a trader can provide you with many models of knee pillows from different manufacturers, but his price can only allow you to purchase a small amount of order. And the price of the factory allows you to buy more orders, thereby making a profit.

2. Strong after-sales service capabilities

The factory directly controls the production line, and the traders directly buy the factory’s stock and store it in their own warehouse. Once the goods have problems, the traders will not open and inspect the goods at any time. When the buyer receives the problematic goods, the time spent in the middle and the labor cost are not low enough, which will offset your interest in the more types of goods in the trading company than in the factory.

Disadvantages:

A single category cannot be obtained if customers have diverse needs.

As a trader, the understanding of customer needs is not good.

How to distinguish between factories and traders?

 

  1. Field visiting
  2. The supplier’s office address is consistent with the address of the visited factory inspection? If no, it’s a trader. Some traders will move directly into the factory office, this needs to be further distinguished.
  3. If the factory inspection requires an appointment in advance, basically traders, because the supplier working in other places need to rush over to receive you in advance.
  4. Whether the salesman is familiar with the factory workers, they can directly command? If the salesman needs a third person accompanied during the visit to the factory, then it is a trader2. Business Register Inquiry
  5. Normally the client only knows the English name of the supplier, you can translate them into the corresponding Chinese name, then check the business license, you will know whether it is factory immediately.
  6. Of course, there is some trick here, some traders will open a small factory, maybe a simple packing plant, almost make nothing, with 99% of the goods purchased, but it’s a real factory, this still trader.
  7. 3. Category single
  8. Factory normally has a single category, such as headphones, earplugs, but a variety of styles of headphones and earplugs.
  9. A wide variety of headphones, every idea you can imagine with headphones and earplugs.
  10. But will not cross categories, there will not be a data cable, and a rechargeable battery, and a car bracket.
  11. If a supplier with many categories, it’s definitely a trader.

When should we choose a factory?

If you are a master purchaser, familiar with the whole process.

If you need a cheaper price, and you need a single product + packaging.

Newly developed products require faster and more professional technical support.

Highly customized, more OEM products are needed.

Larger number of products

Products that are more frequently purchased

Products that require after-sales service

Payment can be made before delivery or before the goods arrive at the port of destination.

When should we choose traders?

When purchasing for the first time, I am not familiar with the entire process of samples, order placement, payment, and logistics. Traders can provide you with a lot of help throughout the process.

A 30%-50% higher price is acceptable, and a variety of product combinations are required.

Need more choices and comparison products

Need more product categories

A small amount

Small custom requirements and general goods

The capital chain is tight, and the loan needs to be repaid on a monthly basis

Suggestion

Whether you choose a factory or a trader, you must pay attention to four points: price, quality, delivery, and service.

Based on the same quality and delivery time, compare prices and compare with at least 3 different suppliers.

Regarding Quality, you don’t need to be proficient, just take a tool to disassemble the product and compare it with other samples, and everything is clear.

According to your situation and needs, compare prices and finally decide what kind of supplier you need.

You will have a smooth purchasing journey, the best price, and the best purchasing experience.

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