Ask the Floor

10 Questions Answered From Shanghai

From my inbox and calls, names removed.

The 7-Factor Supplier Checklist — the checks I run before a deposit moves.

Free. Plus the Monday briefing from Shanghai.

suppliers

How do I know if my supplier is a real factory or just a trader?

You have to check where they actually make it. Ask who does the molding, who runs the production. Sometimes the company you are talking to i

sourcing

My supplier wants the deposit sent to a personal bank account, is this normal?

No, you do not transfer to a personal account. If the money goes to a personal account, there is no official invoice, no fapiao. And if ther

tariffs

What hidden costs sit between the factory price and my door?

There are always costs in between. The factory price is never the final price. Ask exactly what is included. If you want it delivered a cert

verification

Are Chinese certificates real, how do I check one?

Certificates you can buy. A lot of factories buy them. So the paper alone means nothing. You have to check where they got the certificate, w

contracts

How do I make a contract that actually works in China?

It depends on what kind of contract you make and how you make it. A contract can hold in China, but only if everything is done in order, the

negotiation

We are small, under 50k, will a good factory take us seriously?

Yes, they will take you seriously, depending on how you talk to them. Are you looking for short term or long term? And you have to talk to t

contracts

Who owns the mold I paid for, and how do I prove it?

You prove it by checking where the mold is actually made. Sometimes they give it to a third party and you are not even sure who holds it. Th

verification

How do I stop a factory changing materials without telling me?

You stop it by having someone on the ground checking the factory. When a factory knows nobody is watching, that is when the material quietly

contracts

The factory went quiet after I paid the deposit, what now?

This is why you make a real agreement before you pay, not after. A proper signed contract first. And you visit, or you send someone to be on

verification

Should I visit the factory myself or send someone?

It depends. If you are already coming to China, go and see it. But is it worth a flight only for this? Back and forth is already more than a

Work With Me
You have the system. Now get the person.
I'm on the ground in Shanghai every week — supplier visits, audits, negotiations. cengiz@thefactoryfloorhq.com
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