2012年4月18日星期三

The deposit for makeup brush order

In China, most makeup brush manufacturers will require deposit for each order. Only after getting the deposit, we can order material and start production. It is a rule in makeup brush industry.  If customers do not agree to pay deposit, we would rather give up the customers.
 
Some customers cannot understand such rule, for them, it is unfair to pay without receiving products. They believe their official order is enough for the makeup brush manufacturers to arrange production. But for manufacturers, we have met so many customers who have placed order but finally cancel the order; at that time, we have ordered & paid the raw material, and the production is almost finished, but the order is cancelled, we have to afford all cost and loss by ourselves… If such issue happens twice a year, we have to close down.
 
As for the deposit percentage, some makeup brush manufacturers will require 30%, some may require 50% or more. 30% is the least, if less than 30%, the deposit will be somewhat meaningless. For common makeup brush sets, we can agree 30%-50% deposit, as even if the customers finally cancel the order, the material can be used for other orders; but for single brushes with huge order quantity, we will require more than 50% deposit, as if unfortunately the customers cancel the order, the material will become useless. One of our competitors once met a customer who ordered a single brush with huge quantity, and they also have arranged 30% deposit, but when the production is almost finished, they cancelled the order and declared that they no longer needed the brushes or deposit. But the fact is they immediately asked their Chinese agent to recycle the brushes from the manufacturer with extremely low price. Since the brushes have become useless for the manufacturer, they have to sell the brush to the agent even at great loss. Therefore, the customer finally gets the same brush with much lower price even if they give up the deposit. With such lesson, the makeup brush manufacturers get know that the order of single brushes has more risks.
 
We really would like to gain order as many as we can, but the premise the orders will not cause too much risks. Deposit is a way to control our risks, hope our customers can understand such rule.

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