5 Pro's and Con's for importing building material from China.
By now I'm sure everyone in the building industry has heard that importing materials from Asia will save your company huge bucks and propel you into profit heaven. Below I'm going to state the 5 things builders and developers should consider before importing directly.
The first thing that pops into your mind when getting products from overseas is the COST savings. For example you can buy tiles for $8USm2 EXW. Cheap right? WRONG. $8USm2 is Ex Warehouse. By the time you convert it to Australian Dollars and add Transport Costs, Freight forwarding, Duty Fee's, Custom fees and GST and deliver it to your site it eventually will Cost you close to AUD$16.
Lets not forget that China is still 8000 kilometres away. By the time your order you confirm your order, pay your deposit, they manufacture your goods, package it, ship it, clear it from customs, deliver it to your site and or factory, should take about 8-12 weeks. Thats IF there isn't any Chinese holidays (there is a lot of them) and the seas are as smooth as glass.
3. Cash Flow
It would be great if the Chinese gave you a credit account to assist with cashflow. But, unfortunately they are reluctant to for overseas customers. You will be paying at least a 30% deposit (if your lucky) and the Balance before it leaves the factory. Good luck getting your progress payment from the bank or quantity surveyor.
Things CAN and WILL go wrong. If your shipment arrives late, and or your goods are damaged in transit can be an absolute nightmare. It will force your to pay a premium for a local supplier to manufacture your goods urgently due to crucial missing items, wrong measurements, damaged goods, defective products. Without having a local company to take liability for the product, you will have a difficult time claiming warranty for that product. Chinese suppliers will usually "compensate" your loss by granting a credit on your next shipment....if you dare.
When communicating overseas there is two different cultures, languar