In this column we tell the reader about our practical experience
in consulting and conducting business in China.
Right price guarantee in China
08/23/13 By: Igor A.Kozlov Source: © author`s text
Good day to everybody:
With the development of our resource, we are receiving more and more letters with information queries and applications for cooperation. Sometimes we can hear the following: «Yes, we do like the approach declared by your company EASTWAY BUSINESS CUNSULTING LTD. However, what hinders you from having dealings with the supplier behind our back and giving us a price that you have already settled down with him - many people act like this and it is not a secret for anybody. Why is it your company that we should trust?» In response to readers’ questions, we can add the following to what have been previously said: the clients can fully trust our experience and reputation in what concerns decency, reliability and transparency of pricing. Actually, it is very easy to check and moreover, we are ready to openly explain why it does not need any checks. As far as compliance to these pronciples is the basis for cooperation, from the search for a particular supplier (or a range of suppliers specified by the customer), that is in fact from the first call to the factory in China. This is simple, our company will never hold negotiations about purchase or organization of production with Chinese suppliers on its own behalf. We are conductiong such negotiations only to the benefit of the customer. Really, you can judge by yourself: what is the practical sense for us to carry out such negotiations if we do not intend to buy a particular product or organize its manufacture? We do not buy products for our use, but we do implement consulting and assistance to the production and procurement processes according to the order and in the interests of the customer.
Once the primary study of the market is completed, we will set a range of suppliers of possible interest and pick out the most attractive for the project, unless the customer introduces them to us himself. After that we need to start a dialogue with them to clarify conditions of our cooperation. Well then, in order for us to start correspondence with suppliers, our client should make a Special Power of Attorney - a special document authorizing us to communicate and to hold negotiations on the client’s behalf and in his interests on the territory of China on a certain scope of issues.
We are a Hong Kong consulting company and we are officially registered in Hong Kong, so we have to follow the letter and spirit of the law as well as business practices. Representing the interests of the client, we cannot go beyond our statutory activities in our practice. And the fact that we are exactly a consulting company is written in our registered name, not to mention the statutes of the company. Both sides of transaction, that is the customer and the supplier with, if any, legal representatives, understand that they have to do with a consulting company in China, not an intermediary, reseller or a trader. Besides authorization for this scope of activities, the full name of customer’s company and his current contact details are indicated in the document Special Power of Attorney.
Thus, even the Chinese supplier understands from the first minutes of negotiation that he has to do with a representative of a certain foreign brand and, of course, no fees or kickbacks are to be implied. It will never occur to him under such conditions to try offering an official representative a bribe or kickback. It is mostly to Chinese supplliers’ benefit that the price given to the client remains real and competitive, so suppliers usually approve of absence of pricing games. Because we do not charge the price given by him with any fees of our own, so thanks to our respectable, fully open and transparent assistance, his product is sold at its net price, thus becoming competitive in the eyes of any interested foreign buyer.
It is both safe and profitable for all the sides to deal with us:
- the project ordering party, because he is fully aware of the actual cost of every phase of production and logistics
- and the supplier, because he is dealing with the client directly and his prices are not being inflated, so his product remains in demand.
In case of any doubts, the supplier personally gets in touch with the client and receives all necessary confirmations. The same can be done by the client, should any questions or slightest doubts arise.
Besides, it often happens so, that negotiations are being held in presence of the customer or his representative in China. And in this case as well, in presence of both parties we can openly declare orally or in written that we refuse any commissions or kickbacks, should any be proposed by the supplier.
You can rest assured that we have been doing business of our clients and partners in China for many years already. We value our reputation and no cases of charging money, not specified in advance, have ever occured or will occur in our practice. We never give our customers any grounds or motives for doubts. Our business is totally transparent for those who pay us the money.
We thank you for your interest to our company!
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