Trade Company or Manufacturer: What is the best choice?
Jul 27, 2024
To build a successful garment brand, the first important step is to create design and find a good garment supplier to make that design as real product.
So, in fact, to find a good supplier, just the first top for a brand starting up.
You may be searching for garment manufacturer in China or another low-cost countries. And if you’ve browsed from google and other platforms, you’ve probably realized at some points that not all of the suppliers you find are factories — some of them are trading companies.
So what’s the difference between manufactured factory and trading company?
A manufactured factory is an industrial site where workers use specialized equipment and skills to make your product.
But a trading company doesn’t own a factory. Instead, they have a relationship with a factory — or perhaps they work with multiple factories that make their customers’ products. A trading company earns its money through a markup on the product.
So, you might be wondering why you would work with a trading company. Is it worth it to pay their markup?
There isn’t a single right answer to that question — it depends on the circumstances and whether the trading company is adding value. And trading companies can often provide additional value that makes the relationship worthwhile.
Lets see the difference at some important points, to compare how to choose:
#1 – Service with well communication
#2 – Experience for abroad shipping
#3 – Product Cost
#4 – MOQ request
Look at the Valuable Proposition and Your Goals to Make the Best and Right Choice.
#1 – Service with well communication
When you’re dealing with a supplier abroad, having clear lines of communication is important. One advantage of trading companies is that they’re often easier to communicate with. They may have people on staff that speak better English, and since they aren’t involved in manufacturing, they tend to be more customer-focused and put more effort into customer service.
If you’re communicating with factories and encounter communication difficulties, perhaps you can find a trading company that excels in this area. Another consideration is your experience with importing products from abroad.
However, now our tengjie factory has own trade team with perfect communication and also all teammates have professional product experience. It will be the best choice for buyers, not matter start-up new brand or years-experienced buyers.
#2 – Experience for abroad shipping
If you’re new to importing from China or Asia, working with a trading company can make things a little easier. It takes time to build a relationship with a factory, and since a trading company already has that relationship, you can benefit from it.
If you’re a small importer, getting some additional guidance and hand-holding from a trading company might allow you to save precious time and effort. Also, trading companies can sometimes save you money as well.
The both explain is for each feature of them. Tengjie factory’s sale dept are with quite experienced for all shipping ways. Also, there are many stable and reliable forwarder with long time corperation. No worry for any risky.
#3 – Product Cost
Of course, you want to get the lowest price possible, whether you’re working with a trading company or factory. You might assume that since trading companies are adding a markup that they’ll give you a higher price.
This isn’t always the case — if they already have a long-term relationship with the factory, they may be able to get better pricing than you would. They likely buy high volumes across all their different customers and can achieve economies of scale. If you’re a newer importer, you may not be ordering high volumes.
So, now tengjie factory are provided different range cost for buyers, from different qty levels and different product request, or different shipping way.
#4 – MOQ request
One of the first things will be asked from you about is your order quantity. If your order does not meet MOQ (minimum order quantity), you may be out of luck, or the manufacturer will make new price according smaller order qty.
Not matter trade company or manufactured company, all prices are made from manufacturer, based on materials and worker cost, with special request.
So, it is not right that the trade company will have a better price. It may happen at else product, but impossible for customed garment products.
In the end, your unique situation and the specific companies you‘re talking to will determine which option is best.
Not matter how, there are many trade company start to build their own factory. Whom want to produce quality products according buyer’s request.
The times is changing, all Chinese factories know not matter trade company or manufacturer, to make right product according market’s need, with special durable wearing in long time, those are quite important to be more competitive in this new market.
Please send message or mail to tengjie factory, we try both of us will find a right balance to build the good cooperation between us.
