Transform Your Supply Chain: Why Our Client-Side Approach to Sourcing Makes a Big Difference

May 29, 2024 | 0 comments

If you’re a brand owner or work for one, this insight is for you.

New factory partners frequently share that our approach is a “breath of fresh air” in the industry. 

Unlike their normal partners—aggressive trade companies and commission hungry agencies—we are fully client-side representatives and don’t take commissions. 

How it’s different and why it matters

Let me break down how that’s different and why it matters

Trade companies and most sourcing agencies bake their commission into: 

➤ Client purchase orders

Client mold costs 

➤ Client sample costs

➤ Client shipping costs 

They normally make money on both sides—also taking a big piece of the profit pie from factories in the form of commissions.

 

The factory also feels the pain

If you work with a trade company, not only is your cost inflated, but there is a factory out there making your order who is also getting squeezed

So, when we roll up to a vetted factory with a perfect fit client not wanting a commission, it’s a huge surprise. A pleasant one. 

What’s not to love? The factory gets to work directly with a great client, building a long-term relationship. With a trade company or agency, they rarely know who they are working with, as by design, they have zero contact.

Why this matters to you

With our approach, the client gets introduced to the best fit factory and avoids the heavy middleman markups that are so standard in the industry. 

As a brand, it may often “seem” like a deal when you work with a trade company or agency, because you aren’t paying anything upfront. But the additional cost is baked and hidden in the inflated unit cost. 

This often adds up to 30% more on your cost of goods on every order. It’s significant. 

We love our jobs

This is why Xiaofeng Wu, I, and the whole team at China Product Pros love coming to work every day. 

We’re making a meaningful change, one client and one factory relationship at a time. 

What do you think? Have you experienced hidden costs with trade companies or sourcing agencies?

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