Today, I will continue to share this case with you. It is the experience of the factory owner of Linyi. This case is really a bloody lesson. I hope it can give a wake-up call to foreign trade colleagues.
5 Years ago, a foreign trade salesman in Linyi has been engaged in this industry (plywood) and has a strong ability to receive orders, all of which are direct customers in Europe and America. Therefore, his initial stage of entrepreneurship was very smooth. Due to sufficient orders, plywood factories and companies quickly developed to more than 200 people. However, operating an enterprise and simply operating a trading company are two different things. The production enterprises face many management problems, which are often the factors of being cheated.
Those who have operated enterprises know that the orders of production enterprises need to be balanced. Because they are all assembly line operations, the configuration of workers in different orders is also different. They can not blindly accept orders that are simple and easy to produce. They also need to configure orders in different processes. This is a relatively complex problem, which will not be discussed in detail here. At the same time, plywood factories also face tax problems, workers’ life management problems and safety problems…. That’s too much. For such a complex problem, the best SALES may not be able to cope with it. Even if he works more than five hours a day. Plywood factories also work overtime day and night to produce and ship goods, but there is no profit.
At this time, a Mexican customer came to the plywood factory, who was brought by a Mexican Chinese woman. It was said to be a husband and wife relationship. The guest is very professional. He found a professional buyer after talking. The order is also very large, and it is the basic model, which is enough for the plywood factory to produce for half a year. At the same time, the customers keep the price very low, and the plywood factory is basically unprofitable. However, all the workers and the management personnel of the plywood factory are very eager to accept this order. The order is large, and the style is simple. For the workers who calculate the wages on the assembly line. This half year is very comfortable to make money, but for the boss, there are great risks. First of all, the profit is low, and even the loss will occur. Second, the financial pressure is great. All raw materials need to be prepared at one time, and the customer only accepts the letter of credit payment, not the deposit. At that time, under comprehensive consideration and measurement, for the development of the enterprise, the factory owner of Linyi decided to accept the order. In his mind at that time, he did not think in the direction of being cheated.
Next, the contract was successfully signed, and then the customer came to the plywood factory many times to confirm the sample materials, and the letter of credit also came. At this time, the factory owner of Linyi found the first problem, but did not pay attention to it. In the terms of the letter of credit, there is an inspection clause. Only after obtaining the QC paper that has passed the inspection can the goods be delivered. This clause actually turns the letter of credit into waste paper. The factory owner of Linyi also questioned the customer about this clause, but the customer, especially the Mexican Chinese woman, made a promise in front of the factory owner of Linyi that there would be no problem with QC paper. From a professional point of view, the factory owner of Linyi said that the customer did not have a big problem. After all, it is reasonable to place such a large order and have requirements for quality. It should not be a big problem in terms of credit to open such a large letter of credit. In addition, the plywood factory has fixed all the materials and scheduled the production time. The factory owner of Linyi did not continue to question, but arranged the production of the plywood factory, and the factory owner of Linyi also took advantage of this time to rest for a period of time to let himself calm down, to properly rectify the management of the plywood factory and plan the future development of the company. After all, he was only 30 years old at that time, and was full of ambition.
Soon, a month passed, and more than half of the goods had been produced. The factory owner of Linyi began to urge customers to inspect the goods and see if they could deliver some of the goods in advance to alleviate the financial pressure. After all, workers’ wages could not be delayed, and the material supplier could not have a 4-month account period even if the relationship was good. But at this time, the customer refused to come to inspect the goods, which was completely different from the previous attitude. He said that he was very busy and needed one-time inspection and one-time delivery. At this time, the factory owner of Linyi felt the crisis. The order had actually forced the plywood factory into a very dangerous path. The customer’s batch shipment was also a way to reduce their own risk. In case of quality problems, the goods could not be shipped, and the customer missed the sales season, which was also very troublesome, but the customer refused.
At this time, as the leader of the enterprise, the factory owner of Linyi has a premonition that there will be a big problem. What should the factory owner of Linyi do if the customer doesn’t want the goods or doesn’t deliver them? What is the way out? So the factory owner of Linyi immediately checked the inventory to see how many goods and raw materials were left unfinished? How long can the cash flow of the plywood factory last? At the same time, contact the previous customers and directly say that there is a batch of goods. If the customers have problems, whether they want or how much they can want. The factory owner of Linyi was very sincere at that time and also made a loss plan.
According to the calculation of Linyi’s factory owners at that time, the cash flow of the plywood factory will maintain up to this single shipment at most. If everything goes well and the plywood factory is in good condition, Linyi’s factory owners will continue to develop as planned. If there is a small problem, the plywood factory will work in vain, but if the workers earn money and the state earns tax, it is still not a problem. The worst result was that the goods were in the hands of the factory owner in Linyi. The cash flow of the plywood factory was cut off, and the plywood factory could only be closed. After the goods were sold out, the factory owner in Linyi could still afford to lose. It’s a pity that the plywood factory with 200 people is like the children of the factory owner in Linyi. The 200 workers need to find another job. The factory owner in Linyi also has no severance pay. It’s good to be paid in full.
Soon, it was the time of shipment, and the Mexican Chinese woman came to inspect the goods on behalf of the customer. As soon as she entered the plywood factory, she lost her temper for no reason, and the director of the plywood factory was at a loss. The factory owner of Linyi looked at it and knew it. The woman rushed to the packaging workshop like mad and inspected the goods in a way that the plywood factory could not imagine. These goods are made by hand. How can they meet her requirements. The factory owner of Linyi saw the scene and understood everything. Next, as expected by the factory owner of Linyi, the woman said that the goods had serious quality problems. The goods could be shipped, but the money could not be paid. The money could only be paid after the customer sold out the goods and there was no problem. The factory owner of Linyi smiled and said that you could leave the plywood factory today because the cultivation of the factory owner of Linyi decided that the factory owner of Linyi would not be rude to you, but the factory owner of Linyi promised not to let you cheat other plywood factories.
Next, the factory owner of Linyi handled the aftermath of the plywood factory according to his own ideas, and saw that the imported plywood veneer and face leather he purchased himself were sold at a low price, and 200 workers lost their jobs. At the same time, the factory owner of Linyi also commissioned a professional company to investigate the background of the company. At last, everything was clear: the company’s trick was to place orders A and B, place the same order in different plywood factories, and see which plywood factory could accept his terms. They might even place the same order in Sany plywood factory, and use the reason of the large number of orders to drive the plywood factory to a dead end, Faced with this situation, many plywood factories will compromise or partially compromise, resulting in huge losses. If the factory owner of Linyi agreed to the customer and settled after selling out, it would be equivalent to giving the plywood factory to the swindler company. Until it was drained by the swindler company, it would never have a bright future. In fact, this Mexican swindler company has already bankrupted a plywood factory in other places by such means.
These tricks are not clever in themselves, but plywood factories are often easy to be cheated, and it is difficult to find loopholes from the law. However, at that time, the factory owners of Linyi also reported to the relevant departments of the factory owners of Linyi. At that time, no plywood factory in the province of the factory owners of Linyi would cooperate with this swindler company. It is said that they later transferred to Xuzhou, and now it is unknown how, it is estimated that they are still cheating.
After sharing this case, the factory owners in Linyi will sum up with you and share some experiences on how to protect themselves in case of problems as business operators. At present, the situation of foreign trade is severe, and these experiences are also very important.
