Re: [spiers] Payment Terms
In a message dated 5/1/03 11:13:24 AM, carolfreire@earthlink.net writes:
However, most retailers told me that when they buy from a wholesale their
first order is C.O.D. or prepaid. But after the second order they get Net 30
days upon credit approval.
Recall How I say make sure you get the catalog and pricelists of all your
"competitors"? Included in the catalog and price list is the "terms of
conditions of sale." I gave an example of gift and housewares in the book.
The key thing here is to adopt the terms of condistionsof sale of your
competitors as YOUR terms of conditions of sale. The process of buyiing from
you ought never be any different than buying from your competitors. The idea
that you can provide better quality or service as a competitive feature is a
pipe dream, the industry collectively sets a standard thru exp[erience that
is adopted by all... more service or quality and you are wasting money, less
and people wont deal with you. So learn what the terms and conditions a
re for your industry, and make them yours.***
Questions:
1) What is C.O.D.?
***Cash on delivery...sounds good but it rarely works in real life. I would
not use this, but again, what is standard for your industry? (If the buyer
refuses caSh on delivery, you end up eating freight out and back in.)***
2) My suppliers ask for 50% in advance and 50% on delivery. The
suppliers are artisans and small cooperatives in South America, so that if
they don't receive a percentage in advance they don't have the money to buy
the raw materials.
***These are attractive terms***
I want to work according to my clients needs, but I don't want (and I can't
take the risk of financing them.) I know that we importers are insignificant,
so I am afraid of losing clients if I don't offer payment terms that match
their needs. What should I do??
***You have to offer payment terms that match industry standards. You dont
have a choice. First find out what those are, then work up what it will cost
to handle minimum order deals. From there, you can determine just what you
are "Risking"...once you have this figure, you can spread the risk by finding
a financial backer. Now, keep it simple, one step at a time... if you will,
report back what the standard terms are for your industry. Then we can take
this one step at a time.***
John
Thursday, May 1, 2003
Payment Terms
Payment Terms
RE: [spiers] Payment Terms
Carolina,
(1) COD - Cancel the Order & Die
not really, its Cash On Delivery.
(2) Pass your terms on to your customers, you should not take risk. Take
the prepaid route. Once things get rolling and if the items sell well your
customers will definitely want more of them because they are making money.
You can set terms and conditions at that point. If they are not selling the
items then they won't be asking for more. You will establish a working
relationship with your supplier as well and they might flex on their terms.
Best of luck
-----Original Message-----
From: Carolina Freire [mailto:carolfreire@earthlink.net]
Sent: Thursday, May 01, 2003 10:05 AM
To: spiers@yahoogroups.com
Subject: [spiers] Payment Terms
I am thinking of importing some handcrafts from South America. I did the
market research and talked to some retail stores that may carry my products.
The retailers liked my products and said they were interested in buying
them. So, I have potential clients!
However, most retailers told me that when they buy from a wholesale their
first order is C.O.D. or prepaid. But after the second order they get Net 30
days upon credit approval.
Questions:
1) What is C.O.D.?
2) My suppliers ask for 50% in advance and 50% on delivery. The
suppliers are artisans and small cooperatives in South America, so that if
they don't receive a percentage in advance they don't have the money to buy
the raw materials. I want to work according to my clients needs, but I don't
want (and I can't take the risk of financing them.) I know that we importers
are insignificant, so I am afraid of losing clients if I don't offer payment
terms that match their needs. What should I do??
I would appreciate any insights and comments!
Thanks!
Carol
Payment Terms
I am thinking of importing some handcrafts from South America. I did the market
research and talked to some retail stores that may carry my products. The
retailers liked my products and said they were interested in buying them. So, I
have potential clients!
However, most retailers told me that when they buy from a wholesale their first
order is C.O.D. or prepaid. But after the second order they get Net 30 days upon
credit approval.
Questions:
1) What is C.O.D.?
2) My suppliers ask for 50% in advance and 50% on delivery. The suppliers
are artisans and small cooperatives in South America, so that if they don't
receive a percentage in advance they don't have the money to buy the raw
materials. I want to work according to my clients needs, but I don't want (and I
can't take the risk of financing them.) I know that we importers are
insignificant, so I am afraid of losing clients if I don't offer payment terms
that match their needs. What should I do??
I would appreciate any insights and comments!
Thanks!
Carol
embassy delay
Re: [spiers] embassy delay
In a message dated 5/1/03 8:49:14 AM, psnyder@alumni.caltech.edu writes:
<< In each case, I addressed it to the commercial attache.
Just wondering if I should wait it out, or what?>>
You can wait, but there is another strategy. Contact the Hong Kong Trade
Development Office... you can find them online. Things are changing, but
traditionally Hong kong has served as an entrepot for China and I have found
you can almost always get better prices, service and delivery getting
products via Hong Kong agents than directly from Chinese suppliers, even
after the agents add their commissions.
The reason is quite simple, the Cantonese are the best traders in the world,
bar none, so they get the best prices.. and the Chinese on the mainland
naturally inflate prices when they see you are from USA (since you can pay
more). We do this commonly from USA as well, where USA companies charge
customers from wealthy countries more than customers from poor countries.
Indeed, there are networks out there that buy up valuable and subsidized USA
product into poor countries and then resell it into rich countries.
John
embassy delay
Has anyone had the experience of writing a letter to an embassy requesting
lists of suppliers for their product? Did you get a response, and how long
did it take?
I have a letter into the Chinese embassy in Washington, D.C., for a month,
now, no response. I sent a similar letter to the consulate in San Fran 2
weeks, ago. In each case, I addressed it to the commercial attache.
Just wondering if I should wait it out, or what?
Wednesday, April 30, 2003
Some Q's on ideas
Re: [spiers] Some Q's on ideas
Thank you both for your feedback! I'll get back to work and sort
things out based on your answers. Your comments about the resource in
China is sort of true I must admit. But, honestly my first idea was
born out of my complete amazement in what I saw (in terms of the
Chinese art work capabilities). That prompted my idea of marrying that
with the American art that I also am intrigued with.
Having this group to keep in touch with after the class is SUCH an
incredible thing to have! I don't know what the percentage of students
end up ultimately doing something with the class, but I am determined
to make certain that I am one of those students makes something. I
just need to keep reviewing your book. You caught me on a few things
that you already had in the book! ;-)
Thanks again, guys. Cheers!
Some Q's on ideas
Re: [spiers] Some Q's on ideas
In a message dated 4/30/03 9:46:05 AM, sourcesf@yahoo.com writes:
<
***No.***
I have a couple of ideas and wanted
to get your input on whether you consider them valid pursuits based on
design. I have a feeling the answer may be no, one of the reasons
being because the design is an artistic design. (art could be easily
copied and is not exactly the type of design that solves a
"problem/need" as you advice in your book/class)
***Happily my opinions count for nothing, when compared to the opinions of
the people who will actually buy from you. Always ask them. As for art, why
would that be an exception? In the history of mankind, all art has been
created to please a patron, the customer, whether it is govt art that junks
up public places, or private art you see in museums, such as michaelangelos
David. Art is also always created in an competitive environment, indeed,
there is no art without competition. Art solves many problems indeed. ***
IDEA #1
-------
Importing Chinese art type products (e.g.- painted crystal ball) into
the US that is based on an American art design.
***Good, if... the designs are confirmed are a good idea and don't exist in
stores you expect to sell your items, they solve a problem and China is the
best place in the world to have the product made.***
So, I would have an artist here create the design and have the
Chinese manufacturer use that design when they make the product for me.
A couple of things to note that I've done so far:
* I have a local artist in mind to make the design for me.
*I have also talked to a couple of small retail shops that sell
somewhat related things and they said the idea sounded pretty
interesting, but they would have to really see an example or picture to
get a better visual of how it would look like.
***Your initial approach here is "I want to sell" ... the approach I
recommend is "I want to buy"... the difference has profound implications.***
* I've looked around a lot to see if anyone else is doing anything
similar and I really haven't found anything.
***Same with the UN Weapons inspectors in Iraq, but we are assured weapons
are there. It does not matter what we think or know... what do the custoemrs
say?***
Questions:
* Is this product design idea a possible valid one in your mind?
***You can do much better.***
* Since a couple of people in retail shops gave me positive feedback,
should I go through the motions of getting a couple of samples made to
use for show?
***No, go back to experiencing a problem and coming up with the solution.***
IDEA #2
-------
Exporting American art work with a custom design.
***I like it, but my opinion does not matter.***
* I have a couple of local artists in mind that create very original
types of work. I've talked to them and they are open to working with
me on my idea. (doing the design, etc.)
* I have talked to several different friends, associates, etc. who
either have family or themselves live or do work with/in China, and
found that many middle class people are looking for western (American
or European) type of art for their homes. (Actually, the desire
includes over all interior design and decorating as well.) So, at
least from a end-consumer perspective I think I got a little bit of
positive info.
* I have sent some images of art work by the local artists and then
gave my shtick on what differences/customized type art I thought would
work over there (and got their feedback and changes). So, i'm working
on the design(s), tweaks and changes that would hopefully be better
over there.
* I have looked on the net and also had a couple of locals look around
their area in galleries and stores with art, etc. There is western
art, of course, but there hasn't really been anything similar found.
Questions/Concerns:
* Is this product design idea a possible valid one in your mind?
***No, because you have not spoken to a single importer in China who says "I
want..." You've spoken to friends and relatives who will agree with whatever
you say. And, if... you were in touch with what you are REALLY passionate
about, you would not concern youself with these prospects.***
* Do I need to worry about local reproductions? Making fake copies of
things is something that is so common in China, so cheap reproductions
could easily be made over there.
***If your custoemrs prefer cheap reproductions, why would you simply not
start with cheap reporductions.? If your customers do not care for cheap
reproductions, what do you care if anyone makes cheap reproductions?***
I figure that is a major concern, but
at the same time they wouldn't be "real" art signed by the original
artist. I believe authenticity, at least for a certain segment of
people over there, would be something that is very important.
***You believe this based on feedback from paying customers of yours?***
They
would actually want the art to be authentically made here in the US,
and they wouldn't accept a similar design that was made in China
(although, at the same time, probably a lot of people wouldn't mind
that).
***And you know this because...?***
So, those are the ideas I have. I'm waiting to get kicked in the pants
with your feedback.
***Please send a pair of pants that I may kick. In the meantime, what you
are doing, I fear, is organizing around a resource. I love China... Hong
Kong is my favorite city in the world... (Seattle and San Francisco are
"home" so they don't count...) and I can understand when people want to trade
with China. But it is a resource, and there are 3 billion people happy to
waste time with you, and 5,000 who you could get rich with, but they won't
waste time with you unless you play your role and provide your value as a
small biz int'l trader. ***
At the same time, I'm hoping part of the ideas may
be fine because I'm still really excited about doing my own business
after having taken your class (even though the class was awhile ago). >>
***It is up to customers whether the ideas are fine; the only thing I can say
is YOU have something to contribute no one else will, and it will be the
basis of a thriving int'l trade biz for you. The customer is most important,
but the product is the hardest part. Go where the most likely products are,
where you experience dissatisfaction.
For example.. a young lady wondered why orthodontic teeth braces had to be an
adventure in sadism. She wondered why one could not make braces made of
plastic teeth liners that slowly move the teeth where they should go. Why
not painless, removeable braces...so people being treated can continue their
normal lives, eat normally, etc?
She lined up designers, developed the product, and is on the market as
Invisilign. She charges quite a premium, but people are willing to pay it
for the advantages. And recall, she is NOT a dentist... she just was
passionate about this particular problem and the solution.
I too thought of this solution to this problem years ago (no doubt tens of
thousands have), but I could care less. So I never did anything about it.
But I am taking advantage of this product (treatment?) now that it is out.
Be confident. And take advantage of what you care about.***
John
Some Q's on ideas
RE: [spiers] Some Q's on ideas
People will always give possitive feedback until such time as they have to
add money...then they become a little more critical. They become more
analytical when it affects their bottom line and their business. Can it sell
or just take up space on the shelves? Get your "ducks" in a row. Do the
design, develop a prototype for "hands on" display, then get some orders.
Money talks and ..... walks! Like the man said, "compete on design!" But
first it's a matter of "due diligence" in action. Get the business plan
made, and do it. Plan your work, work your plan...get orders!
-----Original Message-----
From: sourcesf [mailto:sourcesf@yahoo.com]
Sent: Tuesday, April 29, 2003 10:09 PM
To: spiers@yahoogroups.com
Subject: [spiers] Some Q's on ideas
Hi John, et al
First, I'd like to apologize for the lengthy email. Let me know if
this is a pet peeve for the group. I have a couple of ideas and wanted
to get your input on whether you consider them valid pursuits based on
design. I have a feeling the answer may be no, one of the reasons
being because the design is an artistic design. (art could be easily
copied and is not exactly the type of design that solves a
"problem/need" as you advice in your book/class)
IDEA #1
-------
Importing Chinese art type products (e.g.- painted crystal ball) into
the US that is based on an American art design.
So, I would have an artist here create the design and have the
Chinese manufacturer use that design when they make the product for me.
A couple of things to note that I've done so far:
* I have a local artist in mind to make the design for me.
*I have also talked to a couple of small retail shops that sell
somewhat related things and they said the idea sounded pretty
interesting, but they would have to really see an example or picture to
get a better visual of how it would look like.
* I've looked around a lot to see if anyone else is doing anything
similar and I really haven't found anything.
Questions:
* Is this product design idea a possible valid one in your mind?
* Since a couple of people in retail shops gave me positive feedback,
should I go through the motions of getting a couple of samples made to
use for show?
* Any other comments/suggestions?
IDEA #2
-------
Exporting American art work with a custom design.
There actually a couple of local artists that create very original
types of work. The idea of western art
A couple of things to note that I've done so far:
* I have a couple of local artists in mind that create very original
types of work. I've talked to them and they are open to working with
me on my idea. (doing the design, etc.)
* I have talked to several different friends, associates, etc. who
either have family or themselves live or do work with/in China, and
found that many middle class people are looking for western (American
or European) type of art for their homes. (Actually, the desire
includes over all interior design and decorating as well.) So, at
least from a end-consumer perspective I think I got a little bit of
positive info.
* I have sent some images of art work by the local artists and then
gave my shtick on what differences/customized type art I thought would
work over there (and got their feedback and changes). So, i'm working
on the design(s), tweaks and changes that would hopefully be better
over there.
* I have looked on the net and also had a couple of locals look around
their area in galleries and stores with art, etc. There is western
art, of course, but there hasn't really been anything similar found.
Questions/Concerns:
* Is this product design idea a possible valid one in your mind?
* Do I need to worry about local reproductions? Making fake copies of
things is something that is so common in China, so cheap reproductions
could easily be made over there. I figure that is a major concern, but
at the same time they wouldn't be "real" art signed by the original
artist. I believe authenticity, at least for a certain segment of
people over there, would be something that is very important. They
would actually want the art to be authentically made here in the US,
and they wouldn't accept a similar design that was made in China
(although, at the same time, probably a lot of people wouldn't mind
that).
* Any other comments/suggestions? Any one with a background dealing
with art that would like to shed any light?
So, those are the ideas I have. I'm waiting to get kicked in the pants
with your feedback. At the same time, I'm hoping part of the ideas may
be fine because I'm still really excited about doing my own business
after having taken your class (even though the class was awhile ago).
Thanks!
Tuesday, April 29, 2003
Some Q's on ideas
Hi John, et al
First, I'd like to apologize for the lengthy email. Let me know if
this is a pet peeve for the group. I have a couple of ideas and wanted
to get your input on whether you consider them valid pursuits based on
design. I have a feeling the answer may be no, one of the reasons
being because the design is an artistic design. (art could be easily
copied and is not exactly the type of design that solves a
"problem/need" as you advice in your book/class)
IDEA #1
-------
Importing Chinese art type products (e.g.- painted crystal ball) into
the US that is based on an American art design.
So, I would have an artist here create the design and have the
Chinese manufacturer use that design when they make the product for me.
A couple of things to note that I've done so far:
* I have a local artist in mind to make the design for me.
*I have also talked to a couple of small retail shops that sell
somewhat related things and they said the idea sounded pretty
interesting, but they would have to really see an example or picture to
get a better visual of how it would look like.
* I've looked around a lot to see if anyone else is doing anything
similar and I really haven't found anything.
Questions:
* Is this product design idea a possible valid one in your mind?
* Since a couple of people in retail shops gave me positive feedback,
should I go through the motions of getting a couple of samples made to
use for show?
* Any other comments/suggestions?
IDEA #2
-------
Exporting American art work with a custom design.
There actually a couple of local artists that create very original
types of work. The idea of western art
A couple of things to note that I've done so far:
* I have a couple of local artists in mind that create very original
types of work. I've talked to them and they are open to working with
me on my idea. (doing the design, etc.)
* I have talked to several different friends, associates, etc. who
either have family or themselves live or do work with/in China, and
found that many middle class people are looking for western (American
or European) type of art for their homes. (Actually, the desire
includes over all interior design and decorating as well.) So, at
least from a end-consumer perspective I think I got a little bit of
positive info.
* I have sent some images of art work by the local artists and then
gave my shtick on what differences/customized type art I thought would
work over there (and got their feedback and changes). So, i'm working
on the design(s), tweaks and changes that would hopefully be better
over there.
* I have looked on the net and also had a couple of locals look around
their area in galleries and stores with art, etc. There is western
art, of course, but there hasn't really been anything similar found.
Questions/Concerns:
* Is this product design idea a possible valid one in your mind?
* Do I need to worry about local reproductions? Making fake copies of
things is something that is so common in China, so cheap reproductions
could easily be made over there. I figure that is a major concern, but
at the same time they wouldn't be "real" art signed by the original
artist. I believe authenticity, at least for a certain segment of
people over there, would be something that is very important. They
would actually want the art to be authentically made here in the US,
and they wouldn't accept a similar design that was made in China
(although, at the same time, probably a lot of people wouldn't mind
that).
* Any other comments/suggestions? Any one with a background dealing
with art that would like to shed any light?
So, those are the ideas I have. I'm waiting to get kicked in the pants
with your feedback. At the same time, I'm hoping part of the ideas may
be fine because I'm still really excited about doing my own business
after having taken your class (even though the class was awhile ago).
Thanks!
Monday, April 28, 2003
France
Folks,
Sometimes people ask me "what do you read?" Every day I read
www.dailyreckoning.com for business summaries, and today they had an amusing
article, to wit:
The Daily Reckoning PRESENTS: Inverting the popular adage that war is an
extension of politics, the Yanks and the Frogs are continuing their
pre-war tiff under the motto that politics is the continuation of war by
different means.
That's good news for investors...and lovers of the grape alike.
YANKS, FROGS AND WINE SPECULATORS
by Chris DeHaemer
The funny thing about the anti-French fever that has swept through the U.S.
over the last month is that it has produced an unusual buying
opportunity in nice French wines. The 2000 Bordeaux is much admired as the
best year in two decades.
The magazine 'Wine Spectator' (or should we call it 'Wine Speculator'?) had
this to say about Chateau Leoville Las Cases St.-Julien 2000:
'Absolutely fantastic. This is one of the most exciting young reds I have
tasted in a long, long time. Las Cases has always wanted to make
first-growth quality in a top-notch vintage, and it certainly did in 2000.
Best after 2012. Collectible.'...$175.00 per bottle.
Last week, even those usually inclined to scoff at the pretentious claptrap
of gourmets and food aficionados might have been tempted to buy a case
or two of 2000 Bordeaux...which they could find heaped in the bargain
barrel beside the door at the local spirit merchant, selling for 25%
discounts.
As France-bashing spilled from late-night comedy shows across the United
States following the French government's theoretical "support" for
Saddam Hussein's Iraq, France's wine exports to the U.S. fell noticeably in
March. Wine exports to the U.S. in 2002 were almost $28.5 billion.
This week, wine producers are holding emergency meetings in Paris.
Before the most recent incarnation of the Gulf War, about 40% of Maison
Latour's wine was shipped to America from its vineyards in Bourgogne.
The nascent U.S. boycott has seen sales drop by up to 15%.
The downturn in March exports of French wines has yet to be documented in
official statistics. But unofficial numbers bandied about by individual
exporters indicate that the upward trend witnessed during the first two
months of the year - when exports rose 16% to $287 million - will not
continue.
If you're stocking or replenishing a wine cellar, here's the opportunistic
thing to do: buy 2000 Bordeaux. In ten years, nobody will remember this
bit of Gaullist arrogance and the wine will be in short supply to
boot...with all that noble stuff swilled by backyard barbeque boobs who
bought it in
the bargain bin and stretched it with sugar and seltzer for homemade wine
coolers.
This line of thinking led me to search for French exporters that have been
flustered by the Francophobe fad. A backbreaking and intensive search
revealed this list of companies (actually, I found it in my inbox,
originally compiled by NewsMax):
* Air France. Air Liquide. Airbus. Alcatel. Allegra (allergy medication).
Aqualung (including: Spirotechnique, Technisub, U.S. Divers, and
SeaQuest). AXA Advisors.
* Bank of the West in California (owned by BNP Paribas). Beneteau (boats).
BF Goodrich (owned by Michelin). BIC (razors, pens and lighters).
Biotherm (cosmetics). Bollinger (champagne). Please note: Bank of the West,
Irving, TX, is locally owned and operated, and is not affiliated with
Bank of the West in California.
* Car and Driver magazine. Chanel. Chivas Regal (scotch). Christian Dior.
Club Med (vacations). Crown Royal Canadian Whiskey (Seagram).
* Dannon (yogurt and dairy foods). Dom Perignon. Durand Crystal.
* Elle magazine. Essilor Optical Products. Evian (which, read backwards,
spells "naïve").
* Givenchy.
* Hennessy.
* Jacobs Creek (owned by Pernod Ricard since 1989). Jerry Springer (talk
show).
* Krups (coffee and cappuccino makers).
* Lancôme. Le Creuset (cookware). L'Oréal (health and beauty products).
Louis Vuitton.
* Martel Cognac. Maybelline. Michelin (tires and auto parts). Mikasa
(crystal and glass). Moët (champagne). Motel 6. Motown Records.
MP3.com.
* Peugeot (automobiles). Pinault - Printemps - Redoute (Guicci, Yves Saint
Laurent). ProScan (owned by Thomson Electronics, France). Publicis
Group (including Saatchi & Saatchi Advertising and Leo Burnett Worldwide).
* RCA (televisions and electronics, owned by Thomson Electronics). Red Roof
Inns (owned by Accor group in France). Renault (automobiles).
Road & Track magazine. Roquefort cheese (all Roquefort cheese is made in
France). Rowenta (toasters, irons, coffee makers, etc.).
* Sierra Software and Computer Games. Smart & Final. Sofitel (hotels, owned
by Accor). Sparkletts (water, owned by Danone). Spencer Gifts.
* Tefal (kitchenware). Technicolor.
* UbiSoft (computer games). Uniroyal. Universal Studios (music, movies and
amusement parks, owned by Vivendi- Universal). USFilter.
* Veritas Group. Veuve Clicquot Champagne. Vittel. Vivendi.
* Wild Turkey (bourbon). Woman's Day magazine.
* Yoplait (French company Sodiaal owns a 50% stake).
* Zodiac inflatable boats.
I don't know about you, but the fact that 'Road & Track' magazine AND Wild
Turkey are French-owned is wrong. Very, very wrong.
That said, none of these companies offered ways to monetize the American
backlash against French stuff. In fact, the Paris CAC 40 index has
climbed from 2,400 to 2,903 since the first week of March, thereby proving
once again the major moral component of film noir - there is no poetic
justice.
Make money, not war.
Sincerely,
Chris DeHaemer
for The Daily Reckoning