Jan 24th, 2008
China-U.S. Trade
In general, Drift Reality is all my own content. I normally write about things that mean something to me, or ideas that have evolved in my head over time. I write a draft, do a quick copy edit and then push it live.
There are certain times however when I feel like I need to share something with the world that isn’t my own creation and this is one of those times.
A close friend of mine who runs a business involved with foreign trade recently forwarded me an e-mail thread that was so unintentionally funny that it had me laughing out loud and I wanted to share it with the world (with some sideline commentary).
So it started out with my friend getting contacted by a Chinese exporter who was interested in having them try a product sample:
Chinese Importer
Dear Manager,
We get your information by searching Google and I am glad to know that you deal in the business of sanitary ware. We are a professional trading company dealing in the inflatable boat,wooden crafts,LED light,crystal soil.
Here I would like to introduce you one unique product which you will be interested in——faucet LED light
The faucet experience is so boring,clear water,always the clear water,what if you could have a party in your faucet?Turn the water on,and the running water activates the LED,Making the water look bright blue or red..Not too bad for something that??ll add some pizzazz to the bathroom,Leting you wash in the same bule colored water that swirls aroud the toilet bowel,It can also change the colors according to the temperatures
I have also attached some photos in the attachment for your reference,Please check it
If you need more infomation about it,Please don’t hesitate to contact me
American Importer
Hi ____,
What is the FOB cost on this unit? Can you airmail us a sample to the address below? We are interested in selling products like this on our Web site.
Chinese Importer
Dear David
Thanks for your quick reply
Here I would like to send you the catalogue which cover the detailed infomation of our faucet LED light in the attachment,Please check it
Because our product is very unique,interesting,and attractive,so there are so many clients asking for the samples every day.We can’t give every customer free sample.So by the rule of our company,Our sample isn’t free.But I have checked your website and I think you are our good potential customer and we are looking forward to establish the long-term relationship with you.I have apply our manager and she let me to send you a free sample but the freight should be paid by yourself
If any other questions,Please don’t hesitate to contact me
Waiting for your opinion
American Importer
Hi Eric,
How much to airship one to Arizona ?
Editor: Now at this point in time, they get into a boring back-and-forth about logistics and my friend agrees to pay to have the free sample shipped to his offices in the United States. Now when the item arrives, my friend finds out they expect cash on delivery (decidedly not what they had agreed upon) and he rejects the product.
When the Chinese account rep. finds out about the product rejection, he send an e-mail diatribe that will go down in history as one of the greatest pieces of literature I have ever read:
Chinese Exporter
Hi,f%$k you.cheater.We have the branch company in USA and we know your address.We will arrange the killer to kill you soon.You will get your penalty.
Editor: I’m sorry, I know it isn’t funny to laugh about death threats, but the line “We will arrange the killer to kill you soon” is just so ludicrous I literally have to contain myself to avoid giggling like a schoolgirl.
So anyway, the moral of this story is if you are going to engage in foreign trade with China, be prepared for some crazy ass sh@# to happen.
F@#k you cheater!
I’ve always wanted to take a shower in LEAD - I mean LED - lights.
Hehe - what if you could have a party in your faucet?
I didn’t realize “washing in the same bule colored water that swirls aroud the toilet bowel” could actually be a value proposition.
I’m constantly tempted to wash up in the toilet bowl.
Hopefully they don’t use Craiglist’s to advertise for a killer.
Personally I can’t wait to get my bule colored water going…
To be fair, cash on delivery is standard when buying from China (at least in the industries I know). Many times you will also need to pay a 30% deposit before they even start production, with the remainder before shipping. Perhaps after a long relationship, credit may be given. Chinese factories have been burned way too often when giving credit, and their extremely low margins cannot support the risk.
Consider a European factory (or distribution), where margins of 40% are considered low, and you will often see margins of over 100%. Chinese factories often have 5% or 10% margins.
At 100% margins if a customer doesn’t pay, one additional equivalent sale will recoup the loss. At a 10% margin you need 10 equivalent sales.
Now regarding samples, shipping from China might cost $50 or $100 or more, depending on weight. Imagine a Chinese factory that makes flash memory mp3 players, and are offering samples to potential buyers. Many people will say yes to a sample even if they have no intention of buying; they just want some free stuff. Someone serious about buying will have no problem paying the shipping. Likewise, if you are an established customer, or are known as a serious company, the factory will have no trouble paying for the shipping.
BTW if your friend used his own freight forwarder to arrange the delivery, he should have known the terms were COD the moment his agent picked up the goods.
It is very unlikely the COD was for cost of the item. I don’t think freight forwarders (or any shipping company) will want to get involved in collecting money. It is a hassle without any benefit at all. It means the sender has to invoice the shipper, who then invoices the recipient. There is no benefit for the shipper to do this, and it just doesn’t happen with international shipping (afaik).
If the Chinese arranged the shipment with their agent, and your friend agreed to pay for the shipping, he would not have had a credit account with the shipping agent, and hence would have been expected to pay for the shipping cost on delivery, directly to the shipper. It would have worked out better for your friend too, since he was paying the true shipping cost (not a marked up cost).
It sounds like your friend misunderstood what the payment was for, and rejected the item hastily.
And you wonder why the Chinese guy was angry. His samples were probably destroyed, because it probably wasn’t worth having them shipped back. And he probably also got stuck having to pay for the shipping cost to Arizona as well.
While I don’t agree with the death threat (even those clearly without intention behind them), it seems your friend acted like a jerk, and (probably) unintentionally ripped off the Chinese company.