How to find a manufacturer and buy CNC milling and turning machines from China at a favorable price
I'll start with a little background so that you have the full picture.
The year 2022, as we know, was a rather difficult year for the Russian Federation. It turned out that we had practically no production facilities of our own, even nails were “imported”.
This whole story stretches back to the 90s, when industry was literally killed and replaced by imports. At the same time, China was going through the reverse process - they were buying machine tools from other countries and using them to develop their industry.
And then the sanctions came. The market for metalworking, machine tools and, in general, heavy industry began to develop slowly. Now it is a real unplowed field, where you can and should enter.
In 2023, I was approached by 2 partners who had previously only dealt in fertilizers, but decided to explore the industrial field to produce spare parts. They needed CNC milling and turning machines, but it is unrealistic to find them in Russia at an adequate price. In Russia, most resellers charge huge mark-ups, almost 200%. That is why our goal was to buy machine tools from China.
The year 2022, as we know, was a rather difficult year for the Russian Federation. It turned out that we had practically no production facilities of our own, even nails were “imported”.
This whole story stretches back to the 90s, when industry was literally killed and replaced by imports. At the same time, China was going through the reverse process - they were buying machine tools from other countries and using them to develop their industry.
And then the sanctions came. The market for metalworking, machine tools and, in general, heavy industry began to develop slowly. Now it is a real unplowed field, where you can and should enter.
In 2023, I was approached by 2 partners who had previously only dealt in fertilizers, but decided to explore the industrial field to produce spare parts. They needed CNC milling and turning machines, but it is unrealistic to find them in Russia at an adequate price. In Russia, most resellers charge huge mark-ups, almost 200%. That is why our goal was to buy machine tools from China.
Objective: selection and purchase of CNC milling and turning machines from China at a favorable price
📍Point А:
- Customers have no experience in the spare parts industry, and therefore no understanding of how best to procure machines, what nuances to pay attention to
- No connections and experience with Chinese manufacturers
📍Point B:
- Organized a trip to the PRC and meetings with several factory owners
- Negotiated a favorable contract with a Chinese manufacturer
But first, let's get to know each other
My name is Ivan Melnikov, I am the owner of Asia Business Hub and I have been living in China since 2005. My company helps entrepreneurs with the procurement of equipment and raw materials from China, as well as with the realization of complex technical projects with the participation of Chinese manufacturers with full support at every stage.
Ivan Melnikov
entrepreneur, owner of Asia Business Hub
- Speaks Chinese without an accent
- Understands the mentality of Chinese business owners and know how to negotiate a discount and conclude a long-term contract
- Helps to organize PR in China and establish relations with the Chinese government
How we did it:
Our work involved five stages.
1
Stage. We found manufacturers in China. We selected manufacturers in such a way as to present all types to the client - small companies, medium-sized and large corporations. This was necessary so that the client could see the gradation of prices and service and understand exactly what he needed.
An important indicator was the availability of after-sales service. Without it, the customer is in for a real hassle if something suddenly breaks down
2
Stage. Organized a trip for clients to China. I personally met them at the airport, drove them around the country and organized all the meetings.
3
Stage. Conducted an MBA course for clients, just about China. I immersed them in the history, economy, culture and art of China. I gave them my knowledge based on my own experience of living in the country.
This is, let's say, a bonus for all clients of my company, which makes working with us not only profitable, but also interesting :)
This is, let's say, a bonus for all clients of my company, which makes working with us not only profitable, but also interesting :)
4
Stage. Together we went to the factories to choose the best option. Let me explain here that the mentality of the laobanis (business owners in the PRC) is quite specific. If a person comes to them with an average knowledge of Chinese, with a simple translator and so on, the laobanis will treat him condescendingly, and it is unrealistic to agree on a discount or some kind of perks in such conditions.
When you come to the factory with me, you are treated as an equal. And in China, that's super important
5
Stage. We chose the manufacturer with the best conditions, price and after-sales service. Concluded a contract on favorable terms.
What's the result
We found machines with an optimal price/quality ratio and set up a long-term relationship between our customers and the Chinese manufacturer.
Thanks to my experience and understanding of the local mentality, we managed to conclude a contract on the most favorable terms.
Thanks to my experience and understanding of the local mentality, we managed to conclude a contract on the most favorable terms.
Conclusion: with an experienced guide, you can find a manufacturer in China in a short period of time and make a contract with cool terms. My company can be such a guide for you
And if you want to build a business with China or get a ready-made solution for entering the Chinese market, start with a free consultation at my company.
At an online meeting, we will go over all the nuances and steps specifically for your project.
At an online meeting, we will go over all the nuances and steps specifically for your project.
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