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I am a total virgin importer and have lots of questions/doubts. One of them is how to deal with samples from china. I found the folllowing text in this website http://www.chinaimportal.com, which addresses many of my questions.
I would like to know what the veteran importers think of it and if this is the way to deal with samples.
"
Factory samples
A factory sample is a standard product specimen from a previous batch. It was manufactured according to the customer’s product specifications. These product specifications may or may not match yours. This can be rather troublesome for many inexperienced importers who orders a sample, approves it and tells the supplier that they want to have “the same thing”.
The problem here is that the supplier might not even be aware according to which materials, components and certification standard the sample was made. Result? You’ll end up getting a product that differs from the product sample to a small or large degree.
A factory sample is a good indication of a supplier’s quality standard and expertise. However, it’s not a replacement for a product specification and a sales agreement.
Factory samples tend to be quite cheap, but for natural reasons the price depends on the product. Sometimes suppliers even hand them out for free, but you are expected to pay for delivery. I also suggest that you order samples from multiple suppliers. In my experience up to 70% of the samples we receive tend to be substandard or not matching the client’s quality requirements. If you have samples coming in from several suppliers you can save yourself a lot of precious time.
Customized samples (ODM or OEM)
First I begin by explaining the difference between OEM and ODM. OEM stands for Original Equipment Manufacturing and is generally referred to a product that is customized in various ways. This includes, but is not limited to products with a customized design, colors, features, functions or software.
ODM, Original Design Manufacturing is basically a “light version” of OEM where a buyer orders a product based on the suppliers design (i.e. product specifications) and brands it with their own logo. Basically it’s factory design combined with the branding.
So, why do you need an OEM or ODM sample? Because you can’t be sure whether a supplier is actually capable of manufacturing your customized product until you’ve seen it with your own eyes. A few years ago we managed the outsourcing process for a small apparel company. They wanted to buy caps, so we found a bunch of Chinese suppliers for them. To each one of these suppliers we sent out a number of reference samples and asked them to replicate these, but with the client’s logo and customized design elements.
It turned out that 3 out of 5 suppliers didn’t get anywhere near what the client had in mind. For the other two it took them two months, and a bunch of sample revisions, before they got it right. So, what’s the moral of this story? If we would’ve made a supplier selection without ordering any OEM samples we would’ve been in a world of shit. The client would’ve received a batch of caps so ugly that I would’ve been surprised if even the junkyard would accept them.
While an OEM or ODM sample shall represent the design and quality standard of the final product to the largest degree possible, it’s not always that easy. There are certain limitations tied to manufacturing that makes it impossible to the supplier to make an ODM or OEM sample that is complete representation of what the final product will look like. Colors are one of those things. Dyeing a fabric or other material is quite expensive and requires a certain quantity in order to be viable.
If you’re planning to import customized products from China – order customized samples before you place any order. While it might cost a bit of money (could be anything from ten dollars to several thousand dollars) it’s the only way to really find out if a supplier is qualified to take your orders. Actions speak louder than words, especially in China.
What if a supplier can’t get your product sample right? Dump them, and go to the next one. A supplier is either qualified or not qualified. It’s not your job to train them and if they can’t get it right even though you’ve provided them with clear and consist product specifications, you’re better off somewhere else.
Batch samples
This is serious business. A batch sample comes straight from your production. It’s your product and it’s suppose to represent the overall quality of your batch. If this one doesn’t look right you’re in deep water.
Collecting a batch sample is easier said than done. If you ask your supplier to send a batch sample I can assure that they’ll send a batch sample that doesn’t represent the overall quality of the production. They’ll send you the best sample. Meanwhile in China the production might be a complete disaster. You either collect the batch samples yourself, or you send a trusted Quality Inspector to do it for you. Never, I really mean never, trust your supplier to do this for you.
What should you do if something is wrong with the batch sample? These things happen, and you are much better off discovering any non-compliance before you’ve paid the balance payment. While you should expect 0.5 – 2% of the batch to be defective, the rest shall be in full compliance with your product specifications. Withhold the balance payment until the supplier has repaired or remade the entire lot. Never, and again I really mean never, give in to a suppliers demand to pay up in full before they’ve manufactured the complete batch and in full compliance with your product specifications.
Do I need to pay for product samples?
Yes, in general you do. Factory samples tend to be cheap and sometimes free. However, you are pretty much always expected to pay for the delivery fee. Customized samples can cost anything from ten dollars to several thousand, depending on the product and the complexity. Customized samples require a lot of work and it might take several revisions before the supplier get’s it right. I’ve found this to be especially true for clothing and textile products, while plastic and other molded products tend to be a bit more straight forward.
What if a supplier refuse to provide you with a sample?
That means the supplier got something to hide. A well established manufacturer in China is certain to keep samples and ordering product samples is an integral part of any self respecting importers procurement routine.
When is the right time to order a sample?
Don’t start off with buying a lot of samples before you’ve made a bit of price research and confirmed whether or not a supplier is compliant with the required product certification standards in your country. The sample costs add up quite quickly if you order them from several suppliers and it’s a waste of time and money to buy them from suppliers that are not qualified to begin with.
Not sure which product regulation apply to your product? There’s help to get. When you order a Starting Package, we confirm applicable product regulations in your country and source suppliers able to show previous compliance. Click here for a demonstration video.
Keep in mind that importing non-compliant items is illegal and may result in a forced recall, or serious fines.
Let your suppliers compete!
Receiving a factory sample can take weeks. The supplier might need to wait for a batch to finish in order to acquire them and the delivery can take anything from 3 days to 2 weeks. By the time you receive them a month might have passed by. Considering the high reject rate (assuming you’re quite picky and want to import a product that people will actually buy) you don’t want to end up in a situation where you’ve wasted time waiting for bad samples. Order factory samples from every supplier you consider to be qualified and you are quite likely to receive samples from at least 2 or 3 that are of further interest.
Supplier competition is even more important when it comes to the customized samples. I’ve dealt with countless of situations where the importer gets caught up with a bad supplier who simply cannot get it right. This is really dangerous. The end game is usually that importer accepts a substandard product and perhaps even a price increase. Sounds strange? Not really. At this time the importer has already spent months, and quite a bit of money, working with a supplier.
Backing down at this stage and go looking for a new supplier is off the charts since the importer needs to get their product on the market. They simply can’t wait any longer and the supplier knows this. In other words it’s a golden opportunity for the supplier to lower the quality AND jack up the prices at the same time. Bingo!
Thus you shall not rely on one supplier to make your customized sample, and certainly not make a final supplier selection until you’ve received one. Send your product specification (and reference samples if you got any) to a minimum of 3 suppliers and let them do their best. This approach is a bit more costly but can save your business from a lot of trouble, and perhaps more importantly – get your products on the market much faster.
Storing samples
When you receive a sample, mark it with the supplier’s name and the date of its arrival. The sample is your quality reference that shall be stored as long as you stay in business. You might also want to order a few additional samples so you got something to show your own customers.
Another mistake you better avoid is to send back your only remaining sample to the supplier as a part of the order confirmation. If you’re left without product samples you’ll have a very hard time to prove non-compliance in case of failed production.
I would like to know what the veteran importers think of it and if this is the way to deal with samples.
"
Factory samples
A factory sample is a standard product specimen from a previous batch. It was manufactured according to the customer’s product specifications. These product specifications may or may not match yours. This can be rather troublesome for many inexperienced importers who orders a sample, approves it and tells the supplier that they want to have “the same thing”.
The problem here is that the supplier might not even be aware according to which materials, components and certification standard the sample was made. Result? You’ll end up getting a product that differs from the product sample to a small or large degree.
A factory sample is a good indication of a supplier’s quality standard and expertise. However, it’s not a replacement for a product specification and a sales agreement.
Factory samples tend to be quite cheap, but for natural reasons the price depends on the product. Sometimes suppliers even hand them out for free, but you are expected to pay for delivery. I also suggest that you order samples from multiple suppliers. In my experience up to 70% of the samples we receive tend to be substandard or not matching the client’s quality requirements. If you have samples coming in from several suppliers you can save yourself a lot of precious time.
Customized samples (ODM or OEM)
First I begin by explaining the difference between OEM and ODM. OEM stands for Original Equipment Manufacturing and is generally referred to a product that is customized in various ways. This includes, but is not limited to products with a customized design, colors, features, functions or software.
ODM, Original Design Manufacturing is basically a “light version” of OEM where a buyer orders a product based on the suppliers design (i.e. product specifications) and brands it with their own logo. Basically it’s factory design combined with the branding.
So, why do you need an OEM or ODM sample? Because you can’t be sure whether a supplier is actually capable of manufacturing your customized product until you’ve seen it with your own eyes. A few years ago we managed the outsourcing process for a small apparel company. They wanted to buy caps, so we found a bunch of Chinese suppliers for them. To each one of these suppliers we sent out a number of reference samples and asked them to replicate these, but with the client’s logo and customized design elements.
It turned out that 3 out of 5 suppliers didn’t get anywhere near what the client had in mind. For the other two it took them two months, and a bunch of sample revisions, before they got it right. So, what’s the moral of this story? If we would’ve made a supplier selection without ordering any OEM samples we would’ve been in a world of shit. The client would’ve received a batch of caps so ugly that I would’ve been surprised if even the junkyard would accept them.
While an OEM or ODM sample shall represent the design and quality standard of the final product to the largest degree possible, it’s not always that easy. There are certain limitations tied to manufacturing that makes it impossible to the supplier to make an ODM or OEM sample that is complete representation of what the final product will look like. Colors are one of those things. Dyeing a fabric or other material is quite expensive and requires a certain quantity in order to be viable.
If you’re planning to import customized products from China – order customized samples before you place any order. While it might cost a bit of money (could be anything from ten dollars to several thousand dollars) it’s the only way to really find out if a supplier is qualified to take your orders. Actions speak louder than words, especially in China.
What if a supplier can’t get your product sample right? Dump them, and go to the next one. A supplier is either qualified or not qualified. It’s not your job to train them and if they can’t get it right even though you’ve provided them with clear and consist product specifications, you’re better off somewhere else.
Batch samples
This is serious business. A batch sample comes straight from your production. It’s your product and it’s suppose to represent the overall quality of your batch. If this one doesn’t look right you’re in deep water.
Collecting a batch sample is easier said than done. If you ask your supplier to send a batch sample I can assure that they’ll send a batch sample that doesn’t represent the overall quality of the production. They’ll send you the best sample. Meanwhile in China the production might be a complete disaster. You either collect the batch samples yourself, or you send a trusted Quality Inspector to do it for you. Never, I really mean never, trust your supplier to do this for you.
What should you do if something is wrong with the batch sample? These things happen, and you are much better off discovering any non-compliance before you’ve paid the balance payment. While you should expect 0.5 – 2% of the batch to be defective, the rest shall be in full compliance with your product specifications. Withhold the balance payment until the supplier has repaired or remade the entire lot. Never, and again I really mean never, give in to a suppliers demand to pay up in full before they’ve manufactured the complete batch and in full compliance with your product specifications.
Do I need to pay for product samples?
Yes, in general you do. Factory samples tend to be cheap and sometimes free. However, you are pretty much always expected to pay for the delivery fee. Customized samples can cost anything from ten dollars to several thousand, depending on the product and the complexity. Customized samples require a lot of work and it might take several revisions before the supplier get’s it right. I’ve found this to be especially true for clothing and textile products, while plastic and other molded products tend to be a bit more straight forward.
What if a supplier refuse to provide you with a sample?
That means the supplier got something to hide. A well established manufacturer in China is certain to keep samples and ordering product samples is an integral part of any self respecting importers procurement routine.
When is the right time to order a sample?
Don’t start off with buying a lot of samples before you’ve made a bit of price research and confirmed whether or not a supplier is compliant with the required product certification standards in your country. The sample costs add up quite quickly if you order them from several suppliers and it’s a waste of time and money to buy them from suppliers that are not qualified to begin with.
Not sure which product regulation apply to your product? There’s help to get. When you order a Starting Package, we confirm applicable product regulations in your country and source suppliers able to show previous compliance. Click here for a demonstration video.
Keep in mind that importing non-compliant items is illegal and may result in a forced recall, or serious fines.
Let your suppliers compete!
Receiving a factory sample can take weeks. The supplier might need to wait for a batch to finish in order to acquire them and the delivery can take anything from 3 days to 2 weeks. By the time you receive them a month might have passed by. Considering the high reject rate (assuming you’re quite picky and want to import a product that people will actually buy) you don’t want to end up in a situation where you’ve wasted time waiting for bad samples. Order factory samples from every supplier you consider to be qualified and you are quite likely to receive samples from at least 2 or 3 that are of further interest.
Supplier competition is even more important when it comes to the customized samples. I’ve dealt with countless of situations where the importer gets caught up with a bad supplier who simply cannot get it right. This is really dangerous. The end game is usually that importer accepts a substandard product and perhaps even a price increase. Sounds strange? Not really. At this time the importer has already spent months, and quite a bit of money, working with a supplier.
Backing down at this stage and go looking for a new supplier is off the charts since the importer needs to get their product on the market. They simply can’t wait any longer and the supplier knows this. In other words it’s a golden opportunity for the supplier to lower the quality AND jack up the prices at the same time. Bingo!
Thus you shall not rely on one supplier to make your customized sample, and certainly not make a final supplier selection until you’ve received one. Send your product specification (and reference samples if you got any) to a minimum of 3 suppliers and let them do their best. This approach is a bit more costly but can save your business from a lot of trouble, and perhaps more importantly – get your products on the market much faster.
Storing samples
When you receive a sample, mark it with the supplier’s name and the date of its arrival. The sample is your quality reference that shall be stored as long as you stay in business. You might also want to order a few additional samples so you got something to show your own customers.
Another mistake you better avoid is to send back your only remaining sample to the supplier as a part of the order confirmation. If you’re left without product samples you’ll have a very hard time to prove non-compliance in case of failed production.
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