what's up guys welcome to sourcing warriors channel I made a video on how
to identify made oh man and find the best direct manufacture in China and I
also shared an awesome tip to save you a lot of time when you're ready to contact
the suppliers if you're ready to contact the suppliers I wanted to remind you not
to make these four mistakes in your first email when you are contacting the
suppliers the mystic number four is the most common I hope you are not making
that mistake let's check it out the mistake number one is to position
yourself as a decision maker for example you start your email like this I am the
CEO of XYZ company any experienced Alibaba supplier they will immediately
tell this is a one-person game because any decent sized company will have
functional departments purchasing marketing product development so even if
you are the CEO of the company positions yourself as a buyer as a purchasing
agent senior buyer even purchasing manager is fine down the road you can
always use this arrangement use your CEO as the leverage to negotiate with the
suppliers mistake number two is to ask for a quote without properly specifying
quantity price break you're like what quantity price break is a tiered pricing
structure the higher of your quote volume the lower of your price you
should always ask your supplier to quote at a higher quantity and use it to
negotiate your lower quantity by but the mistake a lot of people make is to ask
for a new relevant high quantity for example if your monthly projected sales
quantity is five hundred units and your supplier quoted eight dollars per unit
you're like okay give me a quote for ten thousand units happily they quote you
five fifty and you're like oh great I'm saving twenty five thousand dollars but
wait guys let me point out that the problem with this 10,000 units quote
number one the ten thousand units is like two years inventory if you're
selling five hundred a month are you going to buy two years of inventory at
once probably not number two is at $8 per unit your profit margin probably at
15-20 percent you're feeling like oh that's a little bit tight may not be a
good product but I'd 550 your profit margin can jump at 3540 percent this
create an illusion for your margin analysis and the theory when you're
ready to cut the purchase order if your purchase order quantity is much lower
than the ten thousand units you might create a disappointment and distrust
with your supplier which is not good so keep yourself grounded when you are
asking for the quantity price freak ask irrelevant quantity price break so you
know this is relevant to your future purchases mistake number three is to ask
for a quote without providing proper specifications remember this guy's a
well-thought-out RFQ will be more likely to give you good quality response the
mistake a lot of beginners make is this can you please give me a quote for this
product and that's it do you need a customized logo do you need to change
the design or the shape what if changing the design with the shape will involve
tooling modifications you need to be clear as a friend the easiest way to do
this I understand that you may not have a lot of specifications ready when you
are doing the product research the easiest way to do this is to go onto
Amazon find a product that is close to the product you wanted to customize
copy the image and copy the specification inside of the listing and
sended with your RFQ and the mystic number four is to send the RFQ without
specifying RFQ due date the RFQ due date not only makes your quote looks more
professional it also serves two other purposes one is a cause out the
attention to detail from your supplier number two is it helps to eliminate some
of the middleman the direct manufacturer should be able to respond to your quote
within two to three days but a middleman will have to run around and find your
product depending on your product complexity you should always put a due
date on your RFQ the due date also help you to organize your quotes and put a
cutoff date for your quote analysis they say guys I hope you enjoyed it have a
fun day I'll see you soon