Convergent Sourcing

Q: Why Should I choose Convergent Sourcing over other sourcing companies or going direct to factories myself when sourcing promotional products, retail products, giftware or construction products?
A: • Customs Risk: Most factories and many trading companies are unaware of customs and regulatory requirements for countries outside of China. Customs holdup and unforeseen duty charges can be more the norm than the exception.
• Price: Just because you¡¯re going factory direct doesn¡¯t mean you¡¯re getting good pricing. Factories that go direct to the Western end-user markup their pricing significantly. Keep in mind that factories with robust marketing departments have robust marketing budgets to cover, and this impacts your bottom line in unit cost.
• Opportunity Cost and Economies of Scope: If you go with only one or a handful of suppliers, you can miss out on other new products that your current supplier is unaware of or cannot produce. Let us do your homework for you so you can focus on bringing in sales.
• Many companies who advertise themselves as factories in China are not even factories ¨C they¡¯re trading companies (AKA Shell Factories). One associate of ours visited the same factory four times with different trading companies who all claimed to own the same factory.

Q: Why Should I choose Convergent Sourcing over other US-based sourcing companies?
A: As a HK/China based sourcing company, we leverage lower wage rates and develop technology infrastructure to give us a significant cost advantage over US trading companies. Our operating costs are a fraction of those of US sourcing companies, and we pass this cost savings on to our customers. We frequently under-price US based sourcing companies by 40% or more.

Q: I like to develop products directly with the manufacturer ¨C doesn¡¯t this ensure I¡¯m getting the best deal?
A: If you¡¯re dealing with a domestic producer, this is most likely not the case.
If you¡¯re dealing with overseas contract manufacturing, you could be opening Pandora¡¯s Box. Want to try developing a product cross-culturally and remotely with a non-native English speaker? Plan on more than one revision.
• Developing direct with the wrong supplier can be more than just an exercise in futility, it¡¯s usually downright expensive when you count setup cost overcharges, multiple revisions, and time wasted.
• If you have any proprietary technology or design in your product, this is perhaps the most dangerous way to develop a product. Under current China law, only contracts written in Chinese are legally binding, which means your current NDA is largely ineffective.

Q: Won¡¯t I get a better deal by sourcing from a Chinese trading company?
A: • We usually beat the pricing of Chinese trading companies. Many Chinese trading companies have layers of suppliers and buy from downstream providers on many categories.
• Never confuse price with value. If you get a product for a discounted price and you have to rework, you may have lost more than the just the cost of rework, you might even lose your reputation. Other hidden risks and costs include unforeseen inspection holdups, taxes, fees, and customs issues. Remember the Tomas Tank Engine Train fiasco?

Q: My current domestic supplier is fine, why should I move upstream and bear the risk of the unknown?
A: • The global economy is flattening, and those who do not adapt are subject to the market forces created by those who do. We have a market tested supply chain and are already sourcing to companies who are enjoying the economic benefits of our converged sourcing services.

Q: What are Convergent Sourcing¡¯s Terms?
A: • Initially, on smaller projects, we require a 50% deposit with a balance due upon delivery or LC at site. For larger projects, we may require 30% deposit and 70% before shipping, depending on the category.
• Long term customers enjoy negotiated terms and privileges.

Q: What is the minimum order for Convergent Sourcing?
A: • Convergent Sourcing¡¯s minimum order requirement is USD2000 in low season and USD5000 during peak season, depending on the product being sourced. We do recommend larger orders so we can save you more through economies of scale and stronger bargaining leverage.

Q: What is Convergent Sourcing¡¯s sample policy?
A: • We have a $150 sampling fee, plus the factory cost of the samples themselves
• Custom samples take about 2-4 weeks on average. Stock samples take about a week or more.
• If the samples turn into an order we discount your sample cost from your order

Q: How do we send you our artwork or other files?
A: Artwork can be sent via the inquiry page by clicking the ¡°Upload then Submit¡± button. You can attach up to 10 files. We recommend using jpg for reference images, doc,xls, or pdf for reference docs, .eps for logos or vector graphics, .dwg for schematics, and .ai or pdf for printing, catalogs, or custom packaging.