Many businessmen believe “you get what you pay for”, thus, they cannot buy high quality products at low price. In most cases, it is true. However, if you work hard and use some tactics, it is possible to pay relatively less and get more, as at end of the day, we live in the market economy.
1) Compare between multiple suppliers
Compare several suppliers and their products. Within the supposition of getting equal quality, prioritize those merchants with low prices. But judge the quality of the product. Compare the quality and price of several suppliers and buy from the one offering fewer priced with quality goods.
2) Compare price on B2B platforms
There are several famous B2B websites in China, like Alibaba, Made-in-China, Global Sources and etc. These platforms are packed with a large number of product suppliers, whose products are labeled with the approximate price range. You can understand roughly the cost of your niched products.
3) Know your products
You should understand your products very well. A certain product comes in a variety of different types and quality, you need to know each of its kind and quality. It is possible to alter your product specifications to achieve a much lower cost at meantime still keep the main function. For example, you can use a thinner stainless steel to make a container but to fold the rim so when customers touch it, they feel the product is strong and good.
4) Choose a right factory
In China, there are hundreds of factories which make the similar products, they are at different locations, with different sizes, thus, they focus on different markets. If you go to a big factory, unless your order is very large, you will not get a good price, as there are lots of overheads for a big factory; however, if you go to a very small factory or a home workshop, you may get good price, but the product quality is not assured.
In my 20-year work in global sourcing industry, I learned two useful tactics. #1, Always try to find out the most suitable manufacturing town for your products and choose a factory in that tome. For example, go to Yangjiang for cutlery; #2, Always try to use medium sized factory which keep good balance in quality and price.