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3 Reasons Why You Should Go to China ... and Meet with Your Factories

AgainstAllOdds

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Before Chinese New Year, I took a two week trip to China. It was scary. I spoke no Chinese. But I made it out alive - both happier and richer.

Anyways, let's get down to what you care about. 3 reasons why you should go to China:
  1. Factories give you better prices in person. For me this made absolutely no sense. There were a couple factories that I had already bought from, and had been negotiating with online for months. But for some reason, when I showed up in person, the curtain of bullshit dropped, and my costs went down by 20% -- from already really low prices. The only way I can explain this is because the factories felt a sense of loss. They knew that if they didn't get good deals in place when I was there, then I'd be gone for good. Maybe @Walter Hay or someone better can chime in.
  2. Factories treat you like a king. Seriously. I got chauffeured from factory to factory. Brand new Mercedes, private drivers, etc. Fancy dinners were the norm. These were dinners where three waiters would watch me eat in case I ran out of anything. And these weren't even factories that I sent money to. These were factories that I was meeting with for the first time.
  3. China is the future. Seriously. Driving through Shenzhen, you'll feel like you're in Miami. New skyscrapers everywhere. Expensive cars. Million dollar apartments. China is like a giant boulder rolling down the hill. It's coming, and it's coming fast. If you're into business, then there's no better place to experience true capitalism. When I was there, I felt like Vanderbilt must've felt like when he was on the shores of New York Harbor. Except it wasn't New York. It was Guangzhou. And it wasn't a harbor. It was a highway of freight trucks in every direction, the smell of factory smog in the air, and the aura of wealth at your fingertips.
Oh, and by the way: I'm 24 years old. Look like I'm 18. Wore a regular button down shirt and Timberlands to all my factory meetings. So if you're scared of not being "significant enough" to go visit, then don't worry. If I survived, then odds are that you will too.
 
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Walter Hay

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Before Chinese New Year, I took a two week trip to China. It was scary. I spoke no Chinese. But I made it out alive - both happier and richer.

Anyways, let's get down to what you care about. 3 reasons why you should go to China:
  1. Factories give you better prices in person. For me this made absolutely no sense. There were a couple factories that I had already bought from, and had been negotiating with online for months. But for some reason, when I showed up in person, the curtain of bullshit dropped, and my costs went down by 20% -- from already really low prices. The only way I can explain this is because the factories felt a sense of loss. They knew that if they didn't get good deals in place when I was there, then I'd be gone for good. Maybe @Walter Hay or someone better can chime in.
  2. Factories treat you like a king. Seriously. I got chauffeured from factory to factory. Brand new Mercedes, private drivers, etc. Fancy dinners were the norm. These were dinners where three waiters would watch me eat in case I ran out of anything. And these weren't even factories that I sent money to. These were factories that I was meeting with for the first time.
  3. China is the future. Seriously. Driving through Shenzhen, you'll feel like you're in Miami. New skyscrapers everywhere. Expensive cars. Million dollar apartments. China is like a giant boulder rolling down the hill. It's coming, and it's coming fast. If you're into business, then there's no better place to experience true capitalism. When I was there, I felt like Vanderbilt must've felt like when he was on the shores of New York Harbor. Except it wasn't New York. It was Guangzhou. And it wasn't a harbor. It was a highway of freight trucks in every direction, the smell of factory smog in the air, and the aura of wealth at your fingertips.
Oh, and by the way: I'm 24 years old. Look like I'm 18. Wore a regular button down shirt and Timberlands to all my factory meetings. So if you're scared of not being "significant enough" to go visit, then don't worry. If I survived, then odds are that you will too.
What a great experience and I hope it provides incentive to get others to do likewise. Here are my comments on those 3 reasons:

1. I found that to be a common experience. It also partly explained how I was able to negotiate monthly accounts. (The best form of QC). I was certainly helped in making good deals by the fact that I took one or the other of my teenage sons at ages 14 -16 with me on different occasions. This is against the advice of all the experts, but Asian culture respects those who love and care for their families. My sons opened many doors for me.
The main reason you get better deals is that they know you are real and you are serious. I always dressed up, but dressing down is becoming more acceptable now even in China.
2. I have most often been met at the airport often many miles from the city, usually by the managing director or president depending on what management system they use. The boss of one of those businesses managed to talk on 2 phones pretty well simultaneously while driving me to his factory. On the way he insisted on treating me to his favorite treat - something like a very sweet doughnut minus the hole, but with a layer of chewy pink filling. Others sent chauffeur driven limos to pick me up from my hotel. My first 3 hour meal was a sumptuous feast fit for royalty. I love China.
3. China has a long way to go before it matches the media prophecies of its impending decline and fall.

Sadly, many of those who buy my book simply don't have the cash to spend on travel to China. Although that is the ideal, I try to make it possible for them to succeed, just working from home if necessary, until they hit the big time. I love to hear from them when they can say they have made it.

Walter
 

P3HSB

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Before Chinese New Year, I took a two week trip to China. It was scary. I spoke no Chinese. But I made it out alive - both happier and richer.

Did you go to China alone? I feel like I need to do this too but I am scared!! Btw, I just turned 24 years old. Cheers!
 
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Jake

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Did you go to China alone? I feel like I need to do this too but I am scared!! Btw, I just turned 24 years old. Cheers!
The only thing to be scared of is the scalding hot water that you'll be served at every opportunity
 
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Walter Hay

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The only thing to be scared of is the scalding hot water that you'll be served at every opportunity
That scalding hot water is usually in the form of Jasmine tea. I hate it. My sons hate it, but I had to either drink theirs surreptitiously to avoid offense, or find a pot plant to water. They were only young teenagers after all.

Helpul Hint. If you don't like Jasmine tea don't empty your little cup until just as the meeting is winding up. Any sooner and it will be refilled.

Walter
 
G

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Great!

I don't want to know your product lines and everything, but what's the average order size you're doing? Just want to see for myself whether it makes sense to go there.

Fancy dinners were the norm.
What happens during the meal? Do they talk about business, your order, etc? Or is that not done? Do you still have a big profit margin left after all those fancy dinners?

I'm used to calling my suppliers, doing a bank transfer, and that's it. I like what you did there.
 

AgainstAllOdds

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Sadly, many of those who buy my book simply don't have the cash to spend on travel to China. Although that is the ideal, I try to make it possible for them to succeed, just working from home if necessary, until they hit the big time

I agree to a degree, but I also look at it as an investment. On my trip, I spent a total of $2,000. And that included buying a new, iphone 6 quality phone (since I broke mine the second day there), paying for nice Airbnb's, going on dates (pro tip: use Chinese Tinder to have girls show you around town) and paying for Ubers everywhere so that I wouldn't have to deal with trains (Uber is dirt cheap - like $2 per half hour).

My advice, if you're getting paid in dollars, then right now is the time to travel. You can realistically calculate expenses as Plane Ticket + $500 per week there. And right now, plane tickets are dirt cheap:

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If I flew out from Chicago again, then I'd expect my cost to be $1,100 total for 1 week. Assuming that I can negotiate prices down by 10% in person, then I only need $10k of product to break even. If anyone's running an Amazon business with $50k+ expenses, and have the time, then a trip is a no-brainer.
 
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exclusives88

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When I was in China meeting with manufactures, I was surprised that the people I was talking to via e-mail were all younger than me. Most of them are around 24 years old.

There was one time where I had to travel 1 hour by train to the factory. They picked me up in their Mercedes and took me out for lunch. I was there for a few hours. The female that I was working with asked her boss if she can take me out for dinner and show me around Shenzhen. Unfortunately, I had dinner plans already booked that night. She ended up taking me back home by train (1 hour ride).

Not sure how common that was...
 

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I may be going (again) in mid-April to Hong Kong for the electronics show. In 2005, I was in Asia... 12 separate times.

I will let ya'all know if I am heading over in case anyone will be there at the same time. Waiting on one of my larger factories confirm their attendance at one of the shows I am interested in.
 

AgainstAllOdds

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The only thing to be scared of is the scalding hot water that you'll be served at every opportunity

Lol. On the flight there, a stewardess asked if I wanted hot water. I said sure, and then sat waiting for twenty minutes for them to walk back with tea. The tea never came, and I sat confused.

Helpul Hint. If you don't like Jasmine tea don't empty your little cup until just as the meeting is winding up. Any sooner and it will be refilled.

This. Every single factory has one of those fancy tea sets, and have you sit there while they make you the tiniest cup of tea and negotiate. I actually enjoy the tea, but Walter is spot on with it being refilled. So drink at your own risk.

What happens during the meal? Do they talk about business, your order, etc? Or is that not done? Do you still have a big profit margin left after all those fancy dinners?

Just a normal meal. And I talked about business. But I did the negotiations before dinner. Half of the factories asked me if I wanted to go eat beforehand, but I turned them all down. I was there for business and on a tight schedule. I only took the dinners when I was done negotiating and hungry.

Did you go to China alone? I feel like I need to do this too but I am scared!! Btw, I just turned 24 years old. Cheers!

I had a couple friends in Shenzhen, but they weren't helpful and didn't come with to Guangzhou -- where all the factories were. If you're scared of going alone, then fly out for Canton Fair in April or October. I'll be going in October, and a lot of other members here go too. Just keep a look out for the Canton Fair posts, and plan your trip around that.
 
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AgainstAllOdds

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I may be going (again) in mid-April to Hong Kong for the electronics show. In 2005, I was in Asia... 12 separate times.

I will let ya'all know if I am heading over in case anyone will be there at the same time. Waiting on one of my larger factories confirm their attendance at one of the shows I am interested in.

If you're manufacturing electronics and want to make some friends out there, then send me a message. I met a lot of expat entrepreneurs in Shenzhen that are all creating new wearables, electronics, etc. They have companies with dozens of employees and are really making interesting things happen. I'd be more than glad to connect you.
 

Phones

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Had the same experience ahah.

I'm 21, went to a factory in Donguan and a bunch of others in Wenzhou, they all treated me really well.

I knew China was having and economic boom, but the amount of high end cars is stupidly high, even in cities nearby Wenzhou (what we would call "villages" but have nearly half a million people).

Agree on the better prices, specially if there are other factories around.

I refuse the dinners unless I'm already in business with them and specially if the chance of doing so isn't that high.

Same exact experience with the hot water...

All the sales people are very young, and one of the best factories I found, the owner was in his early 30's. He came by, presented himself, asked if everything was alright, and left the sales girl to do her job, was amazed by his manners.

And don't be afraid to go in alone, just get a data sim card as soon as you get to the airport and a reliable VPN connection (a simple homemade PPTP on a cheap VPS is the way to go, as every other VPN service is blocked there), and you're good to go, google translate does wonders and there's Uber in the major cities. Uber in Guangzhou is ridiculous cheap, like 25 minute ride = 2$ cheap, only noticed it on the last day...
 
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Walter Hay

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Thanks to all who have recounted their encouraging experiences.

For those who can afford it I say: Go For It. For those still on a shoestring budget I say: Save For It. Once you are able to do it, the benefits will far outweigh the cost, but do your homework first. Don't just arrive like a tourist and try to work it out as you go.

Have a plan. Contact prospective suppliers long before you are heading off for China. See if you can time it to get to a trade show that covers your area of interest, but check out the exhibitors of interest before you go.

Like @Phones did, resist the temptation to live like royalty for a week or two. Remember you are there on business. When I traveled with my teenage sons I would allow one day for sightseeing, such as a visit to Tokyo Disnleyand when in Japan, but the rest of the time at any destination was strictly business, even if that did include some 3 hour meal sessions.

Walter
 
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Wisith

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How much of your time did you spend conducting business vs having fun/leisure?

I def plan on going there, but trying to make it a double whammy and hit up the homeland (Thailand) as well to visit family.
 

Walter Hay

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How much of your time did you spend conducting business vs having fun/leisure?

I def plan on going there, but trying to make it a double whammy and hit up the homeland (Thailand) as well to visit family.
Pleasure time was rarely more than 1 day, but in Thailand and the Philippines that stretched out a bit because we wanted to see places off the beaten track and away from the big cities.

That was when my sons were with me. When on my own it was non-stop work. I wanted to get back to my wife and children as quickly as possible.

Walter
 
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Paul David

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I may be going (again) in mid-April to Hong Kong for the electronics show. In 2005, I was in Asia... 12 separate times.

I will let ya'all know if I am heading over in case anyone will be there at the same time. Waiting on one of my larger factories confirm their attendance at one of the shows I am interested in.
Was considering this myself. Are you referring to the global sources one?
I'm off to Germany for Cebit electronics fair in Germany next month. That should be fun!

Sent from my D5803 using Tapatalk
 

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Was considering this myself. Are you referring to the global sources one?
I'm off to Germany for Cebit electronics fair in Germany next month. That should be fun!

Sent from my D5803 using Tapatalk

I think just the security show portion is from Global Sources (but as usual, I could be wrong). There are a few shows that happen simultaneously in April in Hong Kong at and near the convention center.
 

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How much of your time did you spend conducting business vs having fun/leisure?

I def plan on going there, but trying to make it a double whammy and hit up the homeland (Thailand) as well to visit family.

I used to travel to China a lot in my past job, and I would use the weekends for exploring and sightseeing. I would stay in China while working and then Saturday morning I would head to Hong Kong for a night and then head back to China Sunday night.

Another thing that helped me a ton while I was there was to have my days planned out in an excel sheet. It would really help me stay on track and wouldn't let me stray from my original goals for the trip since I was typically there for 2 weeks at a time. But I would always leave the last two days for flex or over run because I would always find something else that required a little more time than I had planned.
 
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623baller

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I'm not Chinese but knows the culture well. (Grew up and lived in Asia until i was 12)

Chinese people value relationships over the business itself, that's why when you guys make the effort to show up in person, they feel respected and want your business further.

Those fancy tea sets and teas are just part of the culture. People would sit down and taste the tea and bond. (some of those teas can be expensive as well, i would not be surprised if the stuff they treated you are something that's worth a couple hundred USD)

The fancy dinners/meals are also a part of how they do business there. when i was a kid, i always hear that lots of deals are made during dinners or during drinking.
 

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China has done something remarkable. They've managed to pull a billion people out of poverty within 30 years. China is going to rule the world in the near future if they don't already.

Did you go to China alone? I feel like I need to do this too but I am scared!! Btw, I just turned 24 years old. Cheers!
About twenty years ago, it would have dangerous to go to China alone on business as a foreigner, but things have changed a lot, it's probably safer than America in many ways.
 

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I really need to go and visit my main supplier.

That would be the only reason, a visit to say hello, not source new factories. That and possibly negotiate better terms.

How is the internet connection in the ruaral/factory areas? I still do not have a customer service rep and so have a ton of emails I have to handle myself everyday.

Is it easy to get around with no understanding of the language? How do you order food, read transit, etc?
 
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I really need to go and visit my main supplier.

That would be the only reason, a visit to say hello, not source new factories. That and possibly negotiate better terms.

How is the internet connection in the ruaral/factory areas? I still do not have a customer service rep and so have a ton of emails I have to handle myself everyday.

Is it easy to get around with no understanding of the language? How do you order food, read transit, etc?

Internet isn't great as you'll likely have to use a VPN. Still very useable provided you don't need to send huge attachments.

That's why you need to be in close contact with an English factory worker for the entirety of your journey - they will help you get around and provide details about how to travel, nearby hotels etc. Ask them for the Chinese names of everywhere you're going and save it on your phone, laptop + print it - then at the worst you can get a taxi to take you back if you get lost. For food - just find a place with pictures and point, you'll be in for a surprise, but that's part of the fun.

Lived here for over a year, came by myself at 18 knowing no Chinese and managed - so nothing to worry about.
 

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Before Chinese New Year, I took a two week trip to China. It was scary. I spoke no Chinese. But I made it out alive - both happier and richer.

Anyways, let's get down to what you care about. 3 reasons why you should go to China:
  1. Factories give you better prices in person. For me this made absolutely no sense. There were a couple factories that I had already bought from, and had been negotiating with online for months. But for some reason, when I showed up in person, the curtain of bullshit dropped, and my costs went down by 20% -- from already really low prices. The only way I can explain this is because the factories felt a sense of loss. They knew that if they didn't get good deals in place when I was there, then I'd be gone for good. Maybe @Walter Hay or someone better can chime in.
  2. Factories treat you like a king. Seriously. I got chauffeured from factory to factory. Brand new Mercedes, private drivers, etc. Fancy dinners were the norm. These were dinners where three waiters would watch me eat in case I ran out of anything. And these weren't even factories that I sent money to. These were factories that I was meeting with for the first time.
  3. China is the future. Seriously. Driving through Shenzhen, you'll feel like you're in Miami. New skyscrapers everywhere. Expensive cars. Million dollar apartments. China is like a giant boulder rolling down the hill. It's coming, and it's coming fast. If you're into business, then there's no better place to experience true capitalism. When I was there, I felt like Vanderbilt must've felt like when he was on the shores of New York Harbor. Except it wasn't New York. It was Guangzhou. And it wasn't a harbor. It was a highway of freight trucks in every direction, the smell of factory smog in the air, and the aura of wealth at your fingertips.
Oh, and by the way: I'm 24 years old. Look like I'm 18. Wore a regular button down shirt and Timberlands to all my factory meetings. So if you're scared of not being "significant enough" to go visit, then don't worry. If I survived, then odds are that you will too.
Hi, Why did not you come visit me when you were in China? :D.
 

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Internet isn't great as you'll likely have to use a VPN. Still very useable provided you don't need to send huge attachments.

That's why you need to be in close contact with an English factory worker for the entirety of your journey - they will help you get around and provide details about how to travel, nearby hotels etc. Ask them for the Chinese names of everywhere you're going and save it on your phone, laptop + print it - then at the worst you can get a taxi to take you back if you get lost. For food - just find a place with pictures and point, you'll be in for a surprise, but that's part of the fun.

Lived here for over a year, came by myself at 18 knowing no Chinese and managed - so nothing to worry about.


I usually communicate with my sellers via emails and watsapp. Which city do we need to visit in China to source products - Guanzhou? OR Shenzhen? or both?

Are there any direct flights to these cities or we have to land Shanghai and then take a connecting flight? Also whats the best time of the year to go there?
 
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