Samples, the Deposit, and When the Balance Moves

Most of the money lost on a first China order is paid at the wrong moment. Either the bulk starts before anyone has signed a sample, or the balance leaves before anyone has opened a packed carton. I keep those two moments apart.

Two kinds of sample

A stock sample shows the factory’s current product. You pay for the piece and the courier. It tells you whether the base is even close. A custom sample carries your logo, your color, or your packing. That one takes longer, and it is the one the bulk has to match. A photograph of a showroom piece is neither.

You approve the custom sample in writing. That approval is what I take back to the line. If the bulk has to change after that, it is a new sample, not a note in a chat.

Deposit, then balance

On a first order I ask for a deposit of about 30% to buy materials and open the line, and the balance after the pre-shipment inspection passes and before the goods leave. I do not ask you to pay 100% before production. A supplier who will only start on full prepayment is a supplier I do not start.

• The deposit invoice names the product, the quantity, and the sample it refers to.
• The balance invoice matches the packed quantity, not the quantity someone hoped to finish.
• A failed inspection stops the balance. Rework happens in China, not in your warehouse.
• Freight terms are already chosen, so the balance is not also a surprise about the port.

How I name the port is in the freight note.

Repeat orders can loosen once the same factory has shipped the same spec cleanly. The first order does not get that looseness.

Keep reading

• What a Pre-Shipment Inspection Covers on Standard Goods
• Alibaba or a China Buyer: What Each One Is For
• FOB, EXW, and CIF: How I Split Freight on a China Order