Importing Tools

The business of importing and exporting is a never ending scenario since the world will never stop to trade. It has always been a lucrative endeavor and is the easiest way to make money at the shortest time. Even with the tough economy, products are still pouring in from this Asian country invading the dominance of the old time suppliers.

Importation business of products from China is the latest fad. This is attributable to the fact that products from China are known to be cheaper than those in other countries thus giving businesses greater profit margins. Likewise, China has been known as the world’s factory giving importers vast choices of suppliers and products from the smallest to the biggest in size.

However, like all other businesses, you need to understand and learn how this business works. For without the right knowledge and tool, you can easily kiss your investment goodbye even on your first try.

What you need to know?

Foreigners doing business in China must initially equip themselves with the right importing tools before venturing in, for without it, success will be difficult to achieve. These tools are:

  • Importing from China a discussion of the ways to check and balance the profitability of the venture. What are the manufacturing costs of products? Also it includes the ways of achieving a “Product to Standard” success. Likewise, it also tackles the methods of identifying the right suppliers and the ways to manage and negotiate with suppliers. Other areas presented in the book are essential strategies, understanding the pricing of products, intellectual property of importers as well as the shipping and customs rules and regulations. Read More…
  • Doing Business In China – An Overview tackles information about China and the etiquette when doing negotiations. It also includes how a direct sourcing of imported goods can be initiated. Read More…
  • Importing from China discusses the industries that serve quality products, the pricing myths, guanxi, mobilization of local assets, and ways of dealing with suppliers with optimal strategies. Also it includes how to search for potential suppliers following the best criteria, calculating the landed cost of products, conducting product inspections. Read More…
  • Import from China DVD, containing the “How to Start Your Own Import Business without Losing Your Shirt” video. Read More…
  • Supplier Self-Assessment
    Allows importers to make self-assessment based on expectations of the product quality. Read More…
  • Non-Disclosure Agreement
    Discussion includes protecting the intellectual property of the importer. Read More…
  • Purchase Order Agreement
    Building a stronger and productive relationship with suppliers. Read More…
  • Manufacturing Agreement
    Ensuring reliable results and reducing risk of misinterpretations. Read More…
  • Exclusive Distribution
    safeguarding the rights of the importer as a sole distributor of the products imported from China with the sole will to assign sub-distributors of the product. Read More…
  • A company based in Australia with a satellite office in China involved in sourcing products in China. Read More…

What is Profitability Analysis?

One of the most important importing tools that a company must learn is how to make a profitability analysis. It is commonly used during the planning period as the company evaluates the proposals for certain undertakings that will require substantial funds. In importing products from China, a company whether big or small needs to make this analysis in order to determine whether such effort will give them a considerable margin and will be worth the investment. This can be done through careful research of products that are highly in demand in the area where it is going to be marketed. Then after identifying the products, the company will then scout for would be suppliers who will initially furnish the cost of the products and the freight cost that will be involved to bring the product to the desired market. Likewise, since the buying prices and the selling prices are in different currencies, foreign exchange rates will also play an important role in the profitability analysis. Before a profitability analysis can be finalized other expenses related to the importation will also be considered. After all these a projected margin can then be computed based on the selling prices of the products.

Importance of Profitability Analysis

Profitability analysis aims to assist management in:

  • Identifying products which are the most or the least profitable.
  • Recognizing reliable sources of information and data
  • Doing flexible responses depending on the changes in the market
  • Classifying product mix to maximized profitability
  • Isolate causes of reduced profits through variances of the projected data against the actual.

Without these importing tools, a venture like importation of products from China can be considered as a blind investment where the buyer or the company is not totally aware if the venture is feasible and profitable right from the start.

 

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