How to Settle Factory Claims in China More Successfully - Part Three - Advice For Your Negotiations
August 16, 2008
How to Settle Factory Claims in China More Successfully - Part Three - Advice For Your Negotiations
How to Settle Factory Claims in China More Successfully - Part Three - Advice For Your Negotiations
By Klaus-Dieter Hanke
Presenting the Facts
After the small talk with the factory management, it is time to get down to hard business. Present all necessary evidence (e.g. documents, statements, invoices and samples) to your supplier. Present everything that you have to the decision maker to convince him of his responsibility and hopefully he will accept fault.
Samples of a defective product are especially effective at proving your case because they can be handed over and everybody can directly see the problem.
A nice prepared folder or binder containing all of the documents and photos can help you in your presentation (perhaps several copies for the other managers as well). It would be great if you have a Chinese translation prepared for the non-English speaking members of the management team.
Consequences the Claim will have for Your Company
Clearly point out to your supplier the consequences the claim has already had on your company (e.g. loss of turnover, loss of customer confidence, loss of reputation as a quality importer). Additionally you should explain future consequences this claim will have if it is not solved soon. Never assume the supplier knows these things. He may understand little about how business is conducted in your home country.
Listen to Your Supplier’s Arguments
Although you may be frustrated and even angry with your supplier, you are well advised to listen to his arguments before making demands. Remember he is in control of a large organization, often much larger than your own company, and deserves some respect. He will try rejecting your claim but you still must listen to him before proposing a settlement.
Line out Your Settlement Proposal
Lining out the details of your settlement proposal is very important. If something is unclear or misunderstood, this is the time to straighten it out. Usually suppliers will ask for a written copy of your proposed settlement to review before the meeting. There is nothing wrong with this but a personal presentation gives it more weight.
Listen to Your Supplier’s Reply
Your supplier has to reply to your proposal and now he may have new ideas for solving the problem. Be patient if you want to achieve anything. You came to solve the claim and must be willing to invest sufficient time.
Give Your Supplier Time to Reconsider
It is very unlikely that your claim will be settled on the first attempt. It may be necessary to give your supplier some extra time to reconsider all the information presented and the proposed settlement. He also may want to investigate details with his company or seek outside advice.
It would be perfect timing if it were time for lunch or dinner. Take a break from the serious discussions and have a meal with your supplier. They may try to ply you with some heavy drinking but that is part of the game. Join in if you want. It may lead to an easier resolution of the problem.
Another Meeting and Hopefully a Revised Proposal
During the next meeting, which could be within the next one or two days, listen carefully to any revised proposals your supplier comes back with.
Most likely they will propose some solution if your arguments and evidence were sufficient. If they still reject your claim or insist on a previous proposal, you may have to take a tougher approach by insisting a new proposal be put on the table.
Calculate the Losses
It is very unlikely that you will recover all of your cost. If your supplier offers a compromise, you have to do the math again to determine if the result is acceptable for you. If their proposal is insufficient, make another counter proposal or request a time for another meeting to bring back a counter proposal. However, this only makes sense if you have the feeling it will help to improve the outcome.
If you feel that the supplier will not be open to an improved offer, you might as well make a decision now whether you want to continue meeting or accept their current offer. Terminating the arrangement with your existing supplier should only be done as a last resort because it is very unlikely that they will voluntarily compensate your company for anything at that point.
As you can see, you need to invest in sufficient time for your meetings and must be patient if your want to achieve a favorable claim settlement.
Klaus-Dieter Hanke
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Tips on Import-Export Wholesale
August 16, 2008
Tips on Import-Export Wholesale!
Tips on Import-Export Wholesale!
By Kirthy S
Your eCommerce site will eliminate or reduce workloads of sales and support force. Marketing on the Internet is significantly cheaper than in offline world. You will also benefit from lower telecommunication costs, losses incurred from document errors, inventory and sales management costs. This will have direct impact on your company bottom line.
Many successful importers worked in the import/export industry before they launched their own business. Not only had they become familiar with the customs and regulations of the business, they made many contacts that they can consult and seek help from. Do you have work experience in the industry you will be importing products for?
You are aware of the competitors in the market for your particular product line. You know where they are strong in and where they are weak in and you have targeted for yourself a niche where you can provide the greatest differentiating edge and advantage.
The best alternative is to use export factoring, a form of export finance. Export factoring allows you to accelerate the payment of your foreign export invoices, providing you with the necessary funds to meet your obligations and grow your company. With export factoring you can get your invoices paid in as little as 2 days. And, as opposed to most conventional financing tools, factoring is easy to obtain and quick to set up.
Invoice factoring can also be very easy to use. It works as follows:
International Background Checks 101
August 16, 2008
International Background Checks 101
International Background Checks 101
By A. Hathaway
Background checks and the services available.
A Rise in Demand
With more people around the global accessing the Internet, and the global population itself exploding exponentially, the world is making a fast transition to online. Businesses around the world now make their hiring decisions based on candidates they find on the Internet. New websites for match making or online dating are popping up daily. These days, it’s not uncommon to find a business partner or even find a spouse on the Internet. In this brave new world, come some sizeable risks.
Verifying the Story
How does an individual in Paris verify a boyfriend’s story who lives in Brazil? Or how does a small business in the United States verify a new supplier located in Singapore? And when looking for romance, just how do we know if he or she is really who he or she claims to be? These questions are becoming more common and so is the demand for background checks. The following section describes some of the services available to learn the truth.
Knowing your Options
The services offered for background checks vary greatly. Some websites offer simple searches for public records, while others combine public records searches with actual investigation. We prefer the latter, as real investigation has real results in most cases. Among the top 3 players in the United States are Kroll, Owens Online and Wymoo International. Wymoo has been expanding its market share by concentrating on customer service and custom investigations. All 3 companys have a strong global presence, while the latter offers surveillance, local investigators and complete narrative reporting.
Pricing the Market
An average background check can cost between $200 and $800, depending on the country of origin and the information needs of the customer. An average background investigation to verify a small business or foreign romance usually ranges between $400 and $600, again depending on the country and specific need for information. Always shop around for service quotes.
Filling the Need
Is it really worth having your international romance, or foreign business partner verified? Absolutely. This is the age of identity theft, relationship scams, advance fee fraud, and these scams are on the rise. Think of a background check investigation as an insurance policy. One can cross his fingers and hope for the best. We recommend contracting a professional background check service, and sleeping well at night knowing the truth.
Best of luck,
A. Hathaway
© 2006-2008 A. Hathaway
A. Hathaway has 20+ years of experience in fraud prevention, foreign markets, international investigations and background checks. His ongoing travel experience consists of over 35 countries and 6 continents. He has worked as a consultant for major firms including Philippine PI and maintains his own blog
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Understanding Import VAT-Understanding The Tax On Importing
August 16, 2008
Understanding Import VAT-Understanding The Tax On Importing
Understanding Import VAT-Understanding The Tax On Importing
By Jack Shepard
Import VAT (value added tax) is a tax levied on the total value of exchanges. VAT is typically due on all new goods imported to the United Kingdom at the same rate that applies to goods manufactured and sold within the UK. Services rendered are also subject to tax at a VAT rate.
If the goods are manufactured from outside the European Union then imported to the United Kingdom, the goods are said to already be in “free circulation”, and no additional VAT is due. The same is true when goods when you import them to the UK then sell within the EU. The tax should only be applied once upon entry to any EU locale. Service VAT is levied to all services, always.
Goods that are bought and sold second hand, such as art and collectibles, are charged a VAT rate based on the purchase price rather than the value of the goods. This payment scheme is optional for those dealing in second hand goods. You may opt to seek advice from an accountant if your second hand sales exceed £150,000 in any year.
Services relating to land and property, such as hotel stays, are taxed at the rate for the country where the land is. Physical services, such as catering, are taxed at the VAT rate for the country where the service takes place. E-commerce and distance learning are charged VAT for the country where the customer is located. Passenger and freight transport is taxed the VAT rate for the country where the transport is supplied.
The HM Revenue and Customs (HMRC) issues VAT to individuals, rather than businesses, in most instances. There are three basic VAT rates charged by HMRC - 17.5% is standard; 5% is the reduced rate and a zero rate. Depending on your business type and accounting practices, you may choose one of the following payment schemes, as set by HMRC.
The annual accounting scheme you make instalment payments at preset intervals. You pay an estimated VAT bill each month or quarter until the end of the year. At that time, you complete your accounting and submit a single return and balance due. Benefits of this scheme make accounting much simpler, as you know how much you regularly scheduled VAT bill will be ahead of time. You save accounting time by completing just one return per year. If your annual income is not expected to exceed £1,350,000, you may choose this scheme. Application for this scheme is required, contact HMRC for further instructions.
Cash accounting scheme allows you to pay VAT only on the payments you receive and make, rather than on invoices. If your customers typically pay late or at prolonged intervals, this is likely a better repayment scheme. You must meet specific conditions set forth by HMRC and your annual turnover may not be expected to exceed £660,000.
A payment scheme created specifically for retailers is for you if you sell direct to the public. The most valuable benefit this scheme provides is a simpler set of rules, saving significant time and money. Turnover limits do apply, depending on your business. Contact HMRC for further details.
Jack Shepard writes for Accordance VAT, an international VAT consultants, specialising in Import Tax & Duty . Accordance VAT offer a unique cross border tax consulting pratice, by providing one central contact for all your international VAT compliance queries.
Please visit Accordance VAT For more information about EU VAT and other international tax compliance issues.
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Importance Of Translation And Interpreter Services On Business Trips
August 16, 2008
Importance Of Translation And Interpreter Services On Business Trips
By John T. Smith
In today’s globalized economy, one cannot down play the significance of translation services during overseas trips. To make your business trip a success you need to communicate with your potential customers in their own language. By communicating with them in their own language, you can gain their trust and their business as well. The advent of the internet has led to an explosive growth in the level of business activity between nations. What we are seeing is a convergence of cultures and economic systems all across the globe. This means that people all over the globe will be communicating more than ever highlighting the need for translation services.
Some agencies bundle translation and travel services for their clients. This means that the customers can avail of translation service right from the time they embark on foreign territory. Many organizations find the translation and travel services bundle quite valuable, as their executives do not feel lost in a foreign land. These agencies ensure that the visitor is picked up from the airport and taken to the hotel room. He or she does not need to involve him in the hassle of booking a taxi or finding a hotel room in a country where the natives do not speak the same language as he does. These operators design the visitor’s itinerary in consultation with the clients and arrange for domestic travel if desired by the visitor. If needed, they also accompany the visitor during factory visits or for client meetings. If there are some contracts to be signed then these agencies also perform the document translation work and explain the nuances of the contract.
If a visitor desires to visit trade fairs, exhibitions or places of historical importance then these agencies provide personal interpreters during these visits also. All these services ensure that the visitor utilizes his time productively during a business trip and make his investment worthwhile. By availing these translation and interpreter services during overseas trips you can prove to your clients that you are serious about their business and are willing to go that extra mile to serve them better than competition.
For professional translation services in Europe, visit Goihata. Goihata provides one of the best professional and technical Japanese Translator and Spanish to English Translations
Article Source: http://EzineArticles.com/?expert=John_T._Smith
http://EzineArticles.com/?Importance-Of-Translation-And-Interpreter-Services-On-Business-Trips&id=1174850
Rate of Exchange Explained For Import & Export Business
August 16, 2008
Rate of Exchange Explained For Import & Export Business
Rate of Exchange Explained For Import & Export Business
By William King
If your export business is performing well in domestic market for some time, you should be thinking of expanding it to the international market. Not only it can provide you with more profits but selling more units will also help in bringing down the cost per unit. Reaching out to global markets can be your way to prosperity which you have been dreaming for. But before you expand your business to outside markets, you must understand that domestic trade is quite simple when compared to international trade, which brings many new factors into play. Exchange rate is probably the most important one, you must understand what is it and how it can disturb your profits before you go through the pricing process. Let’s start with a basic definition.
Exchange rate:
All major countries have their own currencies. When you are selling to these countries, your sellers will be willing to pay in their own currency, while you can demand for a payment in your own currency. The buyer must then go to his bank and have his currency converted. This conversion will be done at foreign exchange rate. Rate of exchange is the value or price of one currency in terms of another currency. Rate of exchange is also a very important factor of the economy, having an impact on country’s overall imports & exports.
Forms of exchange rate:
Two methods are used to determine foreign exchange rate.
i) Floating Exchange rate
ii) Fixed Exchange rate
Floating (or flexible exchange rate), the one widely used in most parts of the world; let the markets decide by means of demand & supply, at which rate the local currency will be converted into other currencies. This type of exchange rate is often fluctuating, and the exporters need to be secure that some dramatic change will not shrink their profits to an undesirable level. Forward exchange rate (estimated exchange rates for some future supply) should be carefully calculated when pricing. Normally exporters come up with a cushion to secure their position in case of sudden change in exchange rate. Fixed exchange rates are decided by regulatory authorities to achieve their economic goals.
Providing the lowest cost possible is vital in international trade, so you cannot shift the whole burden on buyers. Thus, it is necessary that you observe your target market carefully, past fluctuations in its exchange rate and economic stability before you finally decide on prices of your products and services.
William King is the director of UK Wholesalers and Mobile Phone Directory and Canadian Wholesale & Wholesalers Directory. He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.
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