Why Trading Companies Are Better than Manufacturers?

Why Trading Companies Are Better than Manufacturers?

in News

Many customers actually prefer to find the factory direct supply, so they can save a large amount of expenditure, the factory can be the lowest price to customers. At the same time when encountered problems, the factory as the production side, the ability to deal with problems and feedback problems is stronger than the trading company, it is reasonable to say that this form of trade to eliminate the intermediate links should be more welcome by buyers, and no need to cooperate with the trading company, then why the trading company will survive so well? Why often a dozen people form a trading company can receive a large order? What advantages does it have to attract customers to place orders?

Price is indeed an important selection factor in the trade process, but not all, many buyers for the price control is only rough, more important is the company's development strategy, and even value the cost of time is higher than the price, then, what are the factors of the trading company to attract buyers?

 

Trading companies offer professional and better services, and I will present the advantages of the following 6 reasons.

 
  1. Richer product range
  2. Fast delivery time and small order quantity
  3. Buyers buy products as well as services
  4. Reduce risk for customers
  5. New customers are introduced by old customers
  6. Business communication ability is more professional

1、Richer Product Range

A trading company, will not sell only one factory product but will choose many factories to form a class or multiple products for sale or even a product, it will choose several factories, and a variety of specifications, so the combination of sales, then it for the buyer customer, there are many choices, will not be limited to a factory of a product.

For example, a customer needs a variety of fabrics, cotton, linen, silk, velvet, chiffon, woven, knitted, etc., but your factory can only provide cotton, he will have to go all the way to find other factories to buy, the time and labor cost in between is also not low, not enough to offset the little benefit of the factory's lower price than the trading company.

If you do not deal with intermediaries trading companies, foreign buyers will have to send their people to China and are to send enough people to deal with different places and different factories to meet their procurement needs, even to attend exhibitions to find, but also may not be able to find the right products, such a way of operation is far from finding a full range of products to cooperate with the trading company to facilitate and real.

2、Fast Delivery Time And Small Order Quantity

The trading company is not an agent of the factory, but an independent company. After the trading company gets the goods from the factory, it usually has its warehouse for storage, and then slowly digests the inventory. Generally speaking, customers who are looking for a factory will not buy the goods produced by the factory but will want the factory to produce the products he requires, and the factory will generally wait for the customer to place an order before producing the goods, rather than producing the goods and waiting for the customer to buy ready-made.

For some small customers, the minimum order quantity of a certain product is not too high, but the category will be very miscellaneous, and it often fails to meet the factory’s minimum order quantity requirements. The cost calculation from production to transportation is not cost-effective, so there are often Customers with small orders who cannot reach an agreement, so customers will choose to cooperate with trading companies. After all, trading companies must sell more than one product to customers and often sell two or three, or even more than a dozen types together. The quantity is smaller, but the variety is more, so they can make money as well.

The other is the problem of time cost. Many people who seek cooperation with trading companies are to buy products that are in stock. They need to buy products quickly instead of waiting for the factory to produce slowly. Time is money and income for them.

 

3、Buyers Buy Products As Well As Services

Now we know that price is not the deciding factor for buyers to place orders, so what else is important to buyers? Service! Yes, buyers prefer their partners to be a good service company, communication will be much smoother.

Trading companies are between customers and factories, and a very important part of their survival code is service. Excellent trading companies can handle the relationship between factories and customers very well. A factory is a place that only produces products, so services It is not very important, and many factories also have conflicts due to service attitudes, resulting in the loss of customers. 

Trading companies are not the kind of factories who only consider the benefits and are not willing to pay more, for example, the factory is to see the order to start production, but if the customer wants to rush, production will be caught unprepared, but the trading company is different, they often cooperate with customers who need to produce, will let the factory produce a part of the goods in advance, and so customers urgently need to place orders for goods only need to prepare another part of the goods, just transfer part of the risk to themselves but has maintained a long-term customer.

Sometimes, even if the profit is small, the trading company will approach the factory one by one until the customer is satisfied, but the factory is rarely willing and patient to receive customers below the minimum order quantity.

  

4、Reduce Risk For Customers

We all know that factories produce products that are not all of them are very sympathetic to customers and sometimes the quality does not meet the customer's requirements, so they need to spend time and labor costs to adjust, even if the adjustment is not always able to achieve the degree of customer satisfaction. At this time, the buyer will face the problem of finding a replacement, which will seriously slow down his trade process.

 

However, the handling of trading companies is much more flexible, and general trading companies will not only cooperate with one factory. If there is a problem or it is not suitable, you can change to another factory. Generally, any problem in a factory will not fatally affect the business of the trading company.

 

Another point is that the trading company is not the agent of the factory, but it can be the agent of the buyer. What kind of products and what kind of factory the buyer wants to find in China can be done through the trading company, which is equivalent to having an office in China, long-term cooperation is both convenient and labor-saving.

  

5、New Customers Are Introduced By Old Customers

We often talk about sharing, and most people don’t seem to care much about it, but for trading companies, some customers are introduced because of their thoughtful service and strong ability to deal with problems. Under normal circumstances, if a customer thinks the trading company is good, they will introduce it to their friends in the same industry.

 

Friendship is also a major way for trading companies to expand their business. Many trading companies use friendships to develop their business. Not all customers come from interest relationships, many are emotional relations, since they are friends, the work will be more at ease. Some buyers who have a relationship with a trading company, even if they know your factory and are familiar with your factory, they don’t like to find you directly, and they still have to operate through a trading company.

6、Business Communication Ability Is More Professional

 It does not mean that if you know the product, you must be a professional business. Nowadays, factories also like to participate in various exhibitions and sell on various websites, as if they do not need to do business through trading companies, but in fact, factories that know the product do not necessarily do well in sales.

 

Communication is a big problem, the factory does not have a professional sales staff, and there is a big flaw in language communication, many foreigners are not proficient in English, and they may communicate with you in half-baked English. That's even more difficult.

 

The talents equipped by trading companies are far better than those in factories, not only in terms of service attitude but also in terms of foreign language expertise. The sales staff of foreign trade companies still speak a relatively large proportion of minor languages. For buyers, it is easier to feel close to them if they can hear their mother tongue.



  If you have further questions, please feel free to contact us.


0 comments

Leave a Reply

Your email address will not be published. Required fields are marked *