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Note > Beware of pitfalls about deposits in international trade

Beware of pitfalls about deposits in international trade

Time:2018-01-22 10:41:26

I always feel regret for the people who were cheated. But their attitude that they will have the initiative and don’t need to be afraid of anything is not right when the other party paid the deposit. The terrible thing is that liars are using of this psychology to set traps to them.


Beware of pitfalls about deposits in international trade


A salesman from a very famous foreign trade company visited a factory, brought his sample,asked for a quotation, and consult about the production cycle. At that time,the sample he provided is very special, which basically no one wants them except him.After several rounds of price negotiations (because the amount is relatively large), they finally reach an agreement on the spot. After two days,the factory received his 30% deposit ($58,000) ,was happy to have a big buyer.,and appreciate his work style.A few days later,he came to the factory to determine and sealed the production of samples. Thus the factory keep producing the products in hurry so that give him a good impression.However,they couldn’t think this was the last time they met.


When it's time to delivery the products, he gave a phone call saying his foreign guest had given up the ticket because of bankruptcy. The factory did not feel any problems at that time, because they received a 30% deposit, and the goods did not go wrong. He pursued a deposit with the factory which was rejected.


Which really let the factory panic is that they couldn't sold out these special specifications products for 5 consecutive months. They were completely desperate and these goods became bad ones. Until one day, did a salesman come to buy a large number of inventory. Then the factory dealt with the goods by a price below 50% of the original one. Finally,they entirely loss 10 million yuan.After learning through various channels, they found the original order and the consignee are together, but the loss has no way to be recovered.


For this or similar deposit type of cooperation,you have to be cautious before receiving all the money, and do not think there will be no loss. if the product specifications, models, styles and other mainstream are obvious differences, you can raise the deposit amount, make a reasonable schedule of production, and do not rush to produce all the products.


Edit:2018-01-22 10:41:26