2. About RJM Sales, Inc.
RJM Sales has been providing sales and marketing to
Chinese manufacturers, and procurement consulting
and support to U.S. businesses since 1995.
Bob Murphy is the founder and principal of RJM. He has
over fifteen years of importing experience and is an
expert in quality control. He understands U.S. import
regulations and speaks Chinese.
If you’re looking for expertise in Chinese manufacturing,
contact Bob at bobmurphy@rjm‐sales.com.
3. 1. Know the features of the market.
• Some items like textiles are quota items. Quotas are
set by the U.S. government and they restrict the
number of units to be brought into the US during a
calendar year.
• Each item manufactured in China has a U.S. duty rate
associated with it, which is added to the landed cost of
the item. Some duty rates are very high.
• Not all companies have export licenses. If the
manufacturer doesn’t have the proper license, you will
need the services of a trading company.
4. 2. Check the manufacturer’s
background.
• Investigate thoroughly, and get complete
information on past manufacturing and export
experience, including references.
• Evaluate risks involved in buying from a particular
supplier.
• Check research reports for information on
expertise, capabilities and performance
evaluations.
5. 3. Information gathering and
communication are critical.
• The more details you provide, the better chance you have of
receiving a useful response from a potential supplier.
• Call the supplier and talk to the person in charge.
• Keep communication going. One you’re in contact, make sure
you stay in regular contact via email and phone.
• If you have to opportunity to visit the supplier, go and talk
face‐to‐face. It helps minimize miscommunication.
• Know the details of production scheduling and lead times.
6. 4. Know the Chinese culture.
• Take the time to build a long‐term relationship based on
mutual trust.
• Be patient. Conducting international business requires
experience and knowledge, and this only comes with time.
• Get to know the company management personally. Discuss
how to protect intellectual property rights, trademarks,
patents and copyrights.
• Know you can now protects your company’s logos, slogans
and taglines in China.
• Delivery time requirements must factor in Chinese holidays.
7. 5. Know that price bargaining is a true
art form.
• Know the expected range of the product.
• Know that having actual orders and quantities
helps you negotiate pricing.
• Offering partial payments up front to purchase
raw materials can work to your advantage—
especially with smaller companies.
8. 6. Know the quality you require.
• Obtain quality certificates including material composition
reports, independent quality reports and other evidence of
testing and inspection. Make sure certificates match the
claims of the suppliers.
• Obtain samples for assessment.
• Visit the factor to be sure suppliers adhere to the quality
certifications they claim to possess. Ask for evidence of
their quality management system such as procedural flow
charts, quality inspection records, internal audit reports.
• Perfect samples do not guarantee perfect production.
9. 7. Communication and
miscommunication.
• Most problems are a direct result of
miscommunication.
• Got though all aspects of production including
packaging and transportation. Provide the
suppler with feedback reports.
• Always use written agreements.
• Systems are available to translate all
communication if your managers do not read or
speak English.
10. 8. Find companies that take the
initiative to solve problems.
• Due diligence is required to find qualified
trustworthy suppliers. This is especially true if
you are planning a joint venture.
• Management is the key to qualified,
trustworthy suppliers. Know the people you’re
dealing with.
