Nov 17, 2023 Leave a message

Should Sample Fees Be Charged To Major Clients?

During the review meeting last week, one segment of the discussion was about charging sample fees to major clients, and I received feedback with different viewpoints.

The first viewpoint suggests that it shouldn't be charged and is not even worth discussing. They mention that while we debate about sample fees here, the customer has already placed orders with other companies.

The second viewpoint insists that even if the company intends to charge, we should personally cover the sample fees if necessary to secure the client.

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Both of these viewpoints are not entirely wrong. However, I feel that we're all considering this issue solely from our individual perspectives and positions, which may not provide a comprehensive view.

Firstly, there's the matter of the value of sample fees. For instance, if a friend supporting the second viewpoint, the one suggesting personal payment of sample fees, how much of our salary could cover sample fees valued in thousands or tens of thousands?

Secondly, even major clients differ in their quality. Some major clients might seem substantial in size but may not have reliable procurement credibility. When they sample extensively but end up placing orders with other manufacturers, for such clients, sample fees become the first step in assessing their procurement sincerity.

Thirdly, even for high-quality major clients, if the value of the samples is too high, we could consider charging accordingly. Especially in the initial phases of collaboration, even if major clients appear sincere, when mutual trust is insufficient, sample fees remain the best way to demonstrate sincerity.

In our company, for new clients' initial furniture samples, regardless of their size, we uniformly charge three times the product price. Payment is made before arranging sample production. Subsequent bulk orders reaching a certain amount qualify for deductions.

Fourthly, maintaining control over company costs necessitates avoiding easily waiving sample fees. For samples with low value, companies generally opt for waiving fees.

We understand that samples can't be compared with bulk production. Samples might involve costs like mold fees, purchasing new materials, and the high labor costs associated with singular production.

At times, the cost of samples could far exceed the price of bulk products. Even when calculating costs three times higher than the normal price, the company may not break even.

Thus, many companies, even with established clients, continue to charge a portion of the sample fees for high-value products.

For instance, in the case discussed during last week's review meeting, the sample fees for a major client, along with courier charges, totaled over 4,000 yuan, and eventually, it was settled that both parties would share the cost equally.

In our company, for established major clients, if the sample value exceeds 500 yuan, we can cover the sample fees but absolutely cannot cover courier charges. Fortunately, clients can understand and accept this policy.

 

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001 Xinmin Second Road, Xinle Industrial Park, Maan Town, Huicheng Area, Huizhou Guangdong 516057 China

 

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