Tariffs Against China-based Products Affects Manufacturing Costs

There is currently an exchange of tariffs occurring between China and American imports, and this will affect both sides in concern to costs and quality concerns. Now more than ever, if you decide to manufacture in China then you will need a company that can properly represent your company’s manufacturing. Take a look at the video below.

Price concerns: The internet has made it easier than ever to get a quotation, but now China manufacturers will be stressed and in competition with other China manufacturers to provide “the best quotation.” If you choose to contact a manufacturer directly, then this could cause issues for your business. Never bargain on just price.

Quality concerns: Quality levels will also be affected. The price offered yesterday with a China manufacturer will not be as competitive tomorrow. If you do not have good representation for your business in China, then your quality levels will be affected.

What can you do to ensure that you receive great representation in China and prevent changes in price and quality?

(1) You need to establish your product standards.
If a product is manufactured to a certain level or standard, then you as the buyer are willing to accept the production order from the manufacturer. Asian ProSource is one of the few companies in America capable of providing both design and manufacturing management directly with the manufacturer. We are a China registered company that enforces our standards via Mandarin-based contracts with our manufacturers, and we can work with you to meet your level of quality.

(2) Never negotiate on price first. China can be a great place for manufacturing your product idea; however, if the information that you receive is only gathered by email…run! Asian ProSource is based in Las Vegas with both English and Mandarin speaking staff. If you only negotiate on price with your manufacturer, then you will lose on price and thus your manufacturer will change your pricing to reflect the margins that they need.

How can you use this information and the current tariff changes as leverage against your competitors?

Certain companies and/or individuals were faced with the same dilemma as you when they decided to bring their product to market. Do I take the short-cut and try to manage the design and manufacturing aspects on my own -or- am I willing to admit that manufacturing is a specialized skill that requires proper management and that I should hire a product management company to manage certain aspects of my business?

If you are stuck trying to decide which path to take, now is not the time to take the short-cut to manufacturing a quality product. Within the next few months your competitors might be flying into China to renegotiate with their manufacturers, while you will be relaxing knowing that your business is being managed properly.