Is Importing Right for You?
Recently, the influential Boston Consulting Group warned American companies they could face extinction if they failed to shift operations to low-cost countries. The reasons cited for moving include “ uncompetitive domestic costs, lost business, underutilized capacity and the irreversible destruction of value .” This is due in part because of vast savings found in low cost countries, but the report also said a view among U.S. executives that the quality of American workers is deteriorating. In blunt terms, the report cites “the largest competitive advantage lies with companies that move soonest.”
Can your company remain competitive without importing? Take the Risk Of Extinction Test and find out.
PROVEN METHODS, MEASURABLE RESULTS
In 30 years, ITI has amassed invaluable expertise, resources and relationships that can take your business from lagging behind to surging forward as a competitive, viable and profitable company.
See for yourself.
Angeles Group, manufacturer of children’s play modules for preschools and classrooms – faced increased manufacturing costs and couldn’t find a manufacturer in the U.S. to make its product the way they wanted
Microlight Corporation, manufacturer of a medical laser device to treat carpal tunnel syndrome – dominates market due to competitive prices
Wood Ventures, manufacturer of vents for heating and air conditioning ducts – would have gone out of business, putting many people out of work
Jensen, manufacturer of fireplaces – retained 65 employees while remaining competitive
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THE LABOR BARGAIN
Less expensive goods create wider demand for products, as well as larger and new markets for those products. The cost of labor in the U.S. can make manufacturing cost-prohibitive for companies that have to compete on price. According to the Boston Consulting Group, not only are factory workers in low-cost countries much cheaper, but they quickly achieve quality levels that are “equivalent to or even higher than…[the] best plants in the West.”
The decision to import can be a fairly simple one. However, implementation is quite different, and many companies suffer costly mistakes without the proper planning, preparation and help. Attempting this task alone is a formidable undertaking and completely unnecessary.
Working with Import Traders is like having a subsidiary in China to handle the entire process for you. ITI was one of the first U.S. companies to do business in Mainland China 30 years ago. Today, it remains an experienced leader in custom manufacturing, having imported hundreds of products from China for U.S. clients. The company has mastered Chinese territory, culture and business practices so you don’t have to.
With ITI as your offshore manufacturing ally, you can –
- Save 20-40% over domestically produced goods
- Boost profits and remain competitive
- Free your senior management team to spend their time on what they do best
Here’s what we do –
- Maintain relationships with reliable manufacturers in key industrial centers and find the right factory for your product
- Employ Chinese-speaking Houston staff and full-time staff in China
- Evaluate and reduce start-up and long-term costs associated with importing
- Negotiate prices with the same clout large companies enjoy
- Secure product exclusivity with factories to protect intellectual property
- Engage back-up factories to protect against interruptions in production due to weather, power outages or politics
- Provide production samples for testing functionality, design characteristics, raw material content and compliance with U.S. standards BEFORE manufacturing begins
- Conduct quality inspections that meet your criteria BEFORE your products leave China
- Oversee tooling and factory production
- Provide production financing and insurance
- Handle customs clearance and delivery
- Guarantee your products. Credit-worthy clients pay nothing until the product is received in your warehouse, inspected and approved.
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STAY AWAY FROM COSTLY MISTAKES
Successfully – and profitably – doing business in a foreign country requires research and experience. It requires time, expertise and clout. Inexperienced companies can lose a lot of money fast.
Be cautious to avoid the Top 10 Importing Errors that can reverse, and even sink, import savings:
- Sourcing the wrong factory, the wrong region or the wrong country
- Not clearly defining acceptable product standards or assuming Chinese factories follow the same standards as American factories
- Over-negotiating to the point the factory must cut corners to meet your price
- Using non-Chinese speaking inspectors who can’t effectively communicate why a product is unacceptable and what needs to be done to correct it
- Not fully understanding a selected factory’s capabilities and losing out on expertise that could reduce your costs
- Importing products that are not “freight friendly”
- Packaging products using ineffective shipping materials resulting in costly repackaging for U.S. distribution
- Failing to communicate proper package markings and documentation resulting in delayed shipments
- Relying on the factory or a Chinese agent to perform inspections when it is in their best interest to pass the goods
- Going it alone with no leverage to hold a Chinese factory accountable for defects
Find out if importing is right for your company. Call us. It could be a matter of survival. Call 281-242-7030 Ext. 28 or fill out our contact form.
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