Unloading Containers - Be Prepared When the Goods Land!

Forklift - Sourcejuice

There are a number of variables and obstacles to consider when unloading a container and SourceJuice has you covered with experiential knowledge before your container arrives.

Tools of the Trade
If you have ever worked on a car then you are aware that the right tools make all the difference. Unloading a container is no different in this respect. Here are some of the common items you should have prepared.

Time
Time is of the essence when unloading a container. Make all your preparations ahead of time so that the unloading process can be a breeze. Keep in mind there are a lot of people, places and events to manage - all of which cost money if delays occur. Each domestic freight company will be different, but during a delivery, a general rule is: first 2 hours are free, $60/hr thereafter. Call the company providing logistics for delivery and find out their policies.

No Loading Dock?
Believe it or not, this is a common problem for the “newly imported”. Many times warehouses are still under construction or circumstances never arose that required such a need for daily business. If this is your business now, get a dock - it will save you time and money! In the mean time here are your options:

Packaging
To make your import venture the most profitable, you need to get as much product on the container as possible. As with anything in this world, you get what you pay for. Expect to open your container and find wood crates, cardboard cartons or pallets packed all aligned tightly together. Sometimes the product will be stacked on top of one another. Remember, packing a container is not a science, when the factory makes the order they can not account for all variables and sizes. I have ordered granite and not all of it would fit once the order was complete. “We’ll catch those countertops on the next order”, is another great reason to do inventory first thing upon arrival as you hope the factory informed you of this before the container left China (you never know). There are also weight requirements on containers, so once you hit the mark, that is it. Check out a recent Sourcejuice article on WPM or Wood Packaging Material and how it can affect you at the border.

Inventory/Broken Products/Model Numbers
Your first mission is to unload the entire container and perform an inventory of your shipment. That sounds so easy, but it becomes much more than trivial once the container is standing in front of you. It takes enough time to just unload the crates from the container. Some of your crates will not be sturdy enough to make it the entire trip. Expect to rest the forklift operator for a while and carefully unpack these crates by hand.

You can’t exactly ask for a refund! So why do you care?
What is done, is not done! The factory should give you a credit for the broken items that did not make the trip. Check out one of SourceJuice’s articles, “Does China Have a Return Policy?” for additional strategies and information. Your cargo insurance will not cover damages unless the entire container was a loss. This is where the camera and notepad come into play. The factory will want proof of the damage. You can’t expect them to ask for the items back can you? It is best to unpack the entire container, unpackage the material, sort, organize and inventory it. Quickbooks has a great inventory tool built in if you buy the right version. Start off on the right “business foot”, once your business gets going you may never have another opportunity to get it straight. Work with the factory during the ordering process to ensure you have a unique model numbering system for your products. Plan ahead, keep the same scheme across different factories and ensure there is room to expand. I can not tell you how many importers I have witnessed with the most distressing of inventory systems (or none) in place.

Defective Products
Test, Test, Test - that is all there is to say. Do not assume that because the crate looks fine or the product itself looks fine that all is okay. I will give you an example. I purchased over 100 stainless steel kitchen sinks, unpacked the container, unwrapped the boxes and was satisfied with the product. It wasn’t until the sinks were installed in one of our construction projects that we realized during a home owner walk-through that all of the water would not drain from the sink. There were small pools left around the drain, which were tell-tale signs of defective material. Test your products, one from every crate if possible. It would have been disastrous if we had sold the sinks on the retail market.

Storage Options

Be Prepared for Anything
Even the best planning in the world can’t account for everything. I have seen entire shipments intricately planned and still there are unforseeable circumstances - like the forklifts were unable to clear loading bay doors. Make sure you have allowed for extra help, workers, time and flexibility in delivery methods. Figure out an exit strategy or backup plan. Time to unload containers is costly, don’t lose that “imported from China” landed cost at the final hour.

Don’t Forget Insurance
So your shipment has arrived safely, categorized and inventoried. Don’t forget to insure it - wholesale goods in unmanned warehouses are a thieves best friend. Remember, thefts can occur as inside and outside jobs. Make sure you have proper security measures in place to detour theft. Again, plan ahead if you are going to install cameras or burglar alarm systems. Theft is another major cost that can increase your landed price per item! If you are using onsite storage containers, consider MobilMini they have incredible locking systems for their containers.

Good luck, it is all on you. If you need our help - we are always here. SourceJuice

Dylan Blankenship signature
dylan@sourcejuice.com // Dylan Blankenship

January 27, 2008 | Filed Under Logistics | Leave a Comment 

Top 10 Cool Uses for Shipping Containers

Shipping container home

Do not adjust your computer screens, in this week’s article we will examine the unnatural phenomena of cool uses for shipping containers. It’s not just all work and no play here at SourceJuice!

1. Restaurants/Cafe - I’ll bet you’ve all seen the red UK style buses converted into quaint hamburger joints, but never a shipping container turned into ritzy New York contemporary cafe.

01kalk_slide02.jpg

2. MythBusters- these guys have found countless uses for shipping containers including explosion/blast bunkers, catapults, Evil Knievel style launch ramps - you name it.

Myth Busters


3. Datacenters

Sun Blackbox

Blackbox pic 2

Technology is my first love. Sun Microsystem’s “Project Blackbox” is a prototype of the world’s first datacenter built into a shipping container and optimized to deliver extreme energy, space, and performance efficiencies to locations as diverse as deserts, disaster zones or even Mars. A complete datacenter ready to ship anywhere, just drop it on site and add power and connectivity and you’re up and running!

4. Art & Oragami

Oragami

The newly completed Nestle Chocolate Museum in Mexico City, designed by Rojkind Arquitectos, resembles an origami shipping container of sorts and serves as a public space where visitors can learn about and witness the production of Nestle chocolate. The most incredible fun fact about this structure is that it was completed in 2.5 months from start to finish, including design and construction.

Art

5. Houses & Living [high end/luxury]

Zigloo - Lux Housing

Zigloo Residential Design has some great concepts for the luxury home market, coming to a town near you.

6. Other Housing

12containerhouse.jpg

12 container housing.

7. Museums

Exterior Museum

Inside Museum

The Nomadic Museum is the name given to a temporary structure composed of 156 shipping containers, housing the Ashes and Snow photography exhibit of Gregory Colbert.

Gregory Colbert originally conceived of the idea for a sustainable traveling museum in 1999. He envisioned a structure that could easily be assembled in ports of call around the world, providing a transitory environment for his work on its global journey.

8. Septic Tanks - eeewwww…Check out the patent, nuff said.

Shipping Container Septic 1

Shipping Container Septic Diagram

9. Rocket Launcher

Rocket Launcher

*Just Kidding*

10. Container Cities

Container City

Urban Space Management’s Container City projects in London and elsewhere in the UK. As one of the designers in this video explains, the containers are initially manufactured to such precise specifications, that they only vary from each other a couple millimeters. Thus, they are comparatively much simpler to assemble and deal with than traditional building materials.

Check out more on shipping container architecture on Wikipedia.

Dylan Blankenship signature
dylan@sourcejuice.com // Dylan Blankenship

January 25, 2008 | Filed Under Logistics | 3 Comments 

Digging Deeper - Actual Landed Costs Examined. Part 1 of 3

Sourcejuice Dig Deeper Logo

I am straight shooting numbers man. I like less talk and more actual figures from which to base my decisions. Sourcing/importing is a risky game and you will be ever the wiser with the more data you accumulate. We have tapped the brains of experienced importers to give you the numbers behind their successful and failed import ventures. Get prepared with the actual figures of which you can take the ball and run with.

Each import venture is different and there are many variables to contend with. Let’s first examine the actuals, highlight missing incidentals and then analyze/detail each category that will affect your landed cost.

The Actuals
The following are actual figures from a 2007 import.

The shipment was a 20ft container FOB Xiamen to Doraville, Georgia (US). Contents of the container included pre-fabricated granite, stainless steel kitchen and vanity porcelain sinks.

UNKNOWN Incidentals

  1. Customs Exam (storage; exam; moving to exam site, etc.); (MAY/MAY NOT BE EXAMINED)
  2. Additional incidentals (Fed-Ex; Special courier, etc);
  3. Any deviations from pro-forma invoice total value (i.e. invoice changes or additional items to be classified)
  4. Additional time needed to unload container (after 2 hours free time…$60/hour thereafter).
  5. Demurrage calculates differently depending on the port but ranges around $100 a day that the container sits in a holding facility.

Back in November SourceJuice reported on the 9 Costs That Can Affect Your Landed Cost. Keeping with the nature of our latest article we will dig a little deeper into some of these costs with supporting information, data and links.

Invoice Price: FOB rate means that the factory pays trucking, customs clearance, etc (all fees) associated with getting the container from the factory on board the vessel at the port. Once the container is on vessel, you are responsible for all costs to the final destination. This is typical FOB terms, but it is still good business to clarify the terms of sale. Clarify what charges are the responsibility of each party, factory and purchaser/importer.

Shipping Cost: VIP treatment, it’s everywhere and if you do a lot of business or know the right people you can get past the import velvet ropes much cheaper. Ocean freight providers ship two ways: quoting rates by the shipment with current rates or on a contract basis with huge discounts.

  1. If you plan to ship a large volume of containers, use a single ocean freight company and negotiate a contract. This will lock in low rates and sometimes help to avoid fuel and other surcharges.
  2. If you are a smaller importer then consider going with the big boys! That’s right, search your contacts and your contacts’ contacts for a large importer or logistics/freight or forwarding company. You can often times negotiate to ship containers under a big players existing contract. You are still paying, but not as much and you are helping to meet your new partner’s shipping quota (make sure to remind them of that when negotiating the contract). Note: Many times your customs broker can put you in touch with the big players. Thought we’d leave you hanging without a link? Not a chance, try: Triple Eagle

Insurance: Marine Cargo Insurance, Freight Forwarding Insurance and Cargo Insurance are the main/most common types. These various insurance types protect the importer from unforeseen disasters such as the ship sinking, fire, accidents, pirates, etc.

Customs Bonds: A customs bond or surety bond is a guarantee from a bonding company to the United States government that the importer will faithfully abide by all laws and regulations governing the importation of merchandise into the United States.

What you should know about U.S. customs bonds
“U.S. customs regulations provide that a customs bond be posted for each importation of merchandise entering the United States. When goods are imported into the United States, the importer is responsible for making the goods available to the U.S. Customs Service for inspection, ensuring that labeling and packaging requirements have been met, making transaction records available for audit and paying estimated or additional duties and fees, where applicable. The surety company issuing the bond guarantees that the importer will comply with U.S. customs regulations.” -Livingston International

Here is the gist: there are single entry and continuous use transactional bonds.

Monetary Guidelines For Setting Bond Amounts are on the CBP website: http://www.cbp.gov/linkhandler/cgov/toolbox/legal/directives/3510-004.ctt/3510-004.txt.

Ok, I got it! Now where do I get it? Where can I get a bond?
Treasury Department Circular 570, which is published annually, is a list of Treasury approved, certified surety companies. The most current list of Treasury authorized companies is available through their Website at http://www.fms.treas.gov/c570.

Delivery: No loading dock to unload your container upon arrival? - This is a big one, if you don’t have the tools or facilities of the trade it will cost you.

Dylan Blankenship signature
dylan@sourcejuice.com // Dylan Blankenship

January 17, 2008 | Filed Under Landed cost | 5 Comments 

Does China Have a Return Policy?

Returning product to China

In most developed countries, returning a product purchased at a retail location is not a problem. In fact it’s so easy that people often will purchase a product when they’re not even sure if they will keep it. For example, when a customer purchases a product from Walmart, the world’s largest retailer, they are assured that Walmart will take almost anything back, for almost any reason. An excerpt from their return policy reads as follows:

To return a purchase to a store, take the following articles to Customer Service at your local Wal-Mart:

* The item you wish to return
* The invoice for that item
* All original packaging and accessories

For all payment methods except Bill Me Later®, an associate will issue an immediate credit to the original payment method or provide a store credit for the cost of the item and the sales tax, if applicable.

But what happens when Walmart (or your company!) receives defective or substandard goods from a factory in China? Does China have a return policy? The Silk Road International Blog has an interesting article titled Returning Products to a Factory in China where David provides insight into what the reality is on the ground and what your legitimate concerns should be when deciding to request a return of product.

In summary, David points out that if you’re receiving defective/ substandard products and you’re just finding out about it when it hits the dock at your landed destination, you failed to perform the necessary quality checkpoints that simply are required when working with Chinese factories.

So what’s the solution? DON’T EVER SHIP BEFORE YOU (YOU PERSONALLY OR SOMEONE OTHER THAN THE FACTORY) APPROVE IT. It doesn’t matter how “good” your relationship with the factory is. It doesn’t matter if you’ve shipped the same thing a dozen times before. It doesn’t matter how big your order is or how many other future orders rely on this shipment.

If you’ve got product in your home country (and you’ve already paid for it) it’s too late to be finding find problems.

However, accidents do happen, schedules are tight, small companies can be inexperienced, etc. In addition to the obvious issues involved with requesting a refund such as potentionally damaging your relationship with the factory, here are 2 points out of the 6 that we consider vital to consider:

2. You may not get the product back into the country-especially if it’s defective or already opened because of import restrictions. There are limits to what China (and all countries) will allow into their country. Rejected product and or second hand items are often not allowed into China. You need to confirm with a freight forwarder before you start negotiations with your supplier that this is really an option.

You may also find yourself with an IP (Intellectual Property) issue:

5. You will see the returned product again, somewhere. If the product is usable and if you can send it back into China and if you are getting a second order for free I can guarantee you that the factory will sell the stuff to cover their costs. They don’t care about your reputation in the industry-they are concerned about their bottom line, first and foremost. Be prepared for customer service calls from Karachi.

Check out the entire article and as always, do your due diligence to prevent problems from happening once it’s too late!

January 15, 2008 | Filed Under Quality Control | 5 Comments 

Wood Pallets, Crates, or Boxes? Avoid Unexpected Costs at the Border!

Crates

On September 16, 2005, the U.S. Customs and Border Protection (CBP) implemented a plan to enforce the United States Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) import regulation for wood packaging material (WPM). The rule requires WPM, such as pallets, crates, and boxes, used in international trade to support or brace cargo, to be treated to prevent the introduction of harmful insects to U.S. agriculture and to natural, cultivated, and urban forests resources.

The IPPC standard calls for most WPM to be either heat treated or fumigated with methyl bromide in accordance with the guidelines and marked with an approved international mark certifying that treatment. To certify treatment, the WPM must be marked with the approved International Plant Protection Convention (IPPC) logo. Unmarked WPM will be considered untreated and non-compliant.

IPPC logo

Immediate export of all shipments containing violative WPM will be ordered if the Port Director determines that it is not feasible to separate merchandise from the violative WPM. The U.S. regulation for WPM does not allow for treatment at the ports. It does not allow for any alternative
disposal methods. It only allows for the immediate export of the non-compliant WPM.

More information from the US Customs and Border Patrol on wood packaging material regulation, exemptions, and enforcement, may be found here and below.

Importation of Wood Packaging Materials Published in the Federal Register on September 16, 2004

Guidelines for Liquidated Damages and Penalties on Wood Packing Material (WPM)

Other Useful Resources

Frequently Asked Questions (FAQ’s)

For any questions or concerns regarding the requirements for WPM, please visit the APHIS Web site below or call APHIS’ toll-free number at (866) 738-8197. International callers who may not have access to the toll-free number may call (301) 734-5346.

USDA’s Animal and Plant Health Inspection Service’s information on import wood packaging materials: http://www.aphis.usda.gov/import_export/plants/plant_imports/wood_packaging_materials.shtml

   

What does all this mean to me?

It means that if you are using wood packaging material be aware of the possibility that the USDA may do an exam on your container. The exam is to check the “wood packing material” (crates) for the “chop” or “mark” of the company that fumigated the WPM. Even though the crates were fumigated, the marking with country origin, etc. on the crates is what they will look for.

Total for a USDA PPQ (Plant & Quaratine) Exam will run you in the neighborhood of $400. Ensure that your manufacturer is aware and follows the WPM regulations. Failure to abide by these rules can result in great expense once the container arrives in a US port. All expenses incurred for the services of CBP Officers and Agriculture Specialists involved in the separation of cargo will be billed to the importer or other party of interest. WPM and associated merchandise will be exported at the expense of the importer or other party of interest. Ship SAFE, Ship SMART.

Dylan Blankenship signature
dylan@sourcejuice.com // Dylan Blankenship

January 11, 2008 | Filed Under Customs | 5 Comments 

4 Reasons Sourcing from China will be More Expensive in 2008

4 Reasons Sourcing from China will be More Expensive in 2008

China has been trying to stem an ever growing trade surplus, manage domestic inflation, move development from the coastal areas to the inland areas and decrease its dependence on heavily polluting industries.

Because of these objectives, manufacturing in China is becoming more expensive as China adds in hidden (and sometimes not so hidden) costs into the sourcing equation.

Here are the top 4 reasons you can expect costs to continue to rise in 2008:

1. Reduced VAT Refund

When Chinese manufacturers purchase goods domestically for use in manufacturing, they pay a VAT (value added tax). For people in the United States or others who are not familiar with the term VAT, it’s essentially a sales tax. Historically, the Chinese government allowed for generous VAT refunds if the final manufactured product is for export. However, as of July 1, 2007, China has changed its refund formula. Many products have had their VAT refunds completely eliminated and many others have been reduced. Since Chinese factories typically take these VAT rebates into account when calculating profit margins, the reduction or elimination of them is likely to raise prices (or drastically shrink profit margins).

There is an excellent set of PDF files created by mfg.com which detail exactly the products that have had VAT changes as well as those that are duty free altogether. They have all been translated into English. Since these are PDF files, they may load slowly depending on your internet connection.

Please find them here:

2. RMB Currency Appreciation vs USD

Until mid-2005, China maintained a peg on the RMB to the USD at 8.27. This provided an element of stability and took the currency risk out of the sourcing equation. However, over the past year and a half, China has begun appreciating the RMB against the dollar. As of this blog article, the current conversion is 7.26. Furthermore, many experts are estimating the rate to dip well into the 6’s over the next year.

Here is a chart from Yahoo Finance showing the USD vs. RMB trend:

USD vs. RMB Chart

While nobody knows for sure what the ‘final’ trading range will be, there are a few interesting commentaries out there. This article from Bloomberg quotes Jim Rogers, chairman of Beeland Interests Inc. and a former partner of George Soros, saying the RMB may quadruple in the next decade.

The currency has advanced 10.5 percent since the government scrapped a peg to the dollar in July 2005, gains that U.S. officials say are insufficient to reduce a trade surplus that swelled to $23.9 billion in September. Jim Rogers, chairman of Beeland Interests Inc. and a former partner of George Soros, said yesterday the yuan may quadruple in the next decade.

The yuan is “the best currency to buy right now,” Rogers told investors in Amsterdam, adding that he is shifting all his assets out of the dollar and into yuan. China is “going to be the most important country in the 21st century.”

The currency climbed 0.16 percent to 7.4926 per dollar as of the 5:30 p.m. close in Shanghai, according to data compiled by Bloomberg. Non-deliverable forward contracts show traders are betting the yuan will reach 7.0070 in 12 months, a gain of 6.9 percent from the spot rate, and 6.95 by the end of 2008.

On a side note, if you’re importing to Europe, the Euro has actually been appreciating against the RMB, so for now you guys are ok! Check out a recent Yahoo Finance chart showing the Euro vs RMB trend.

Euro vs. RMB Chart

3. Increased Costs Associated with Importing Raw Materials

China said on July 23rd, 2007 that it would begin requiring that exporters put down a deposit for half the amount they spend importing 1,853 raw materials. A quote from this People’s Daily article summarizes the policy.

Enterprises which are engaged in the production of these products are required to have guarantee deposits in the Bank of China, the designated bank of China Customs, for a contracted period of time, according to the statement jointly released by the Ministry of Commerce (MOC) and China Customs.

If these enterprises fail to sell their products within the time scale dictated by the contracts, the customs will ask the bank to keep their deposits and interest for taxation.

“We are striving to improve the development of China’s processing trade in a bid to promote trade balance and reduce trade surplus,” said Wei Jianguo, vice minister of commerce.

These new regulations will require a larger cash outlay for large contracts by Chinese factories. Therefore, it’s more likely that they will need to borrow money to meet this requirement. Borrowing money costs money and that cost is likely to be passed along.

4. Labor Costs Continue to Rise

Labor, once assumed to be endless in China, has been ‘drying up’ for a number of years now. China’s factories depend on a constant supply of new migrant laborers coming from the countryside. Typically every Chinese New Year, as many people return to their home town as can afford to do so. And each year, some old and many new laborers come to the cities in search of work after the holidays.

However, as villages have become more prosperous, with more family members making and sending money back home, this endless supply of new labor, has began to shrink. Because of this and other factors, labor costs continue to rise. China’s National Bureau of Statistics reported that in the first half of 2007 wages were up 18.5% compared to the year earlier period alone!

In addition, China as of January 1, 2008 enacted new labor laws that allow for much more worker protection, but of course at a cost. Global Labor Strategies has an article with many links to other blogs and newspaper articles discussing the reaction worldwide to the new law.

January 9, 2008 | Filed Under Landed cost | 11 Comments 

Is “Guanxi” still needed in China?

Guanxi in China

Guanxi in Chinese means “relationships” and most foreigners and Chinese alike will assure you of the need to have good Guanxi to get business done in China. While I doubt anyone who has done business or lived in China will argue that relationships aren’t necessary here, Shawn He Yuxun, from MeetChinaBiz offers some excellent insight in his blog post into the history of this infamous word Guanxi, its place within China historically and what place Guanxi may have in the future.

In his post, Shawn He Yuxun discusses the history of Guanxi as it relates to requiring personal favors to achieve economic means during a time when China’s economy was completely planned.

Prior to the 1980s, every aspect of China’s economic life was planned, controlled, directed and operated by the government. No private ownership of any property or asset, much less profiteering for an individual or group, was allowed. The government would allocate everyone a pre-defined slice of the “big pie“ (incidentally the equivalent terminology in China — where rice rules the dining table — was “Da Guo Fan“ (da-gore-fun), which means “rice in a big wok“). If one wanted any more than what was allocated to him/her, he/she would have to circumvent the system and rely on another individual in charge of a particular function in that “allocation chain” to do him/her a special favor.

As China began opening up in the 70’s, there was no effective system in place to foster individual economic relationships outside of the planned economy and this Guanxi system.

So by and large throughout the 80’s and most of the 90’s, having Guanxi this “ultra-relationship” or “super-connection“ ALONE had proven to be a sufficient, and in many cases also necessary, condition to get something done, regardless of the fundamentals. With Guanxi, a completely unqualified and incompetent person could land a very important job and/or position. Also with Guanxi, a company with no track record whatsoever could be awarded massive contracts. You get the point…

However, Shawn He Yuxun argues that as certain industries become more privatized, and with a history of economic relationships built outside of the Guanxi system, that Guanxi itself is less important. “Business is business” just like in the west.

As the economy becomes more and more marketized / privatized and competitive, the value and effectiveness of the Guanxi system has also greatly deterioriated. In industries that have been substantially deregulated / privatized or where there is much competition, business is business, and Guanxi has been neutralized / marginalized to resemble just what relationships and connections are like in the Western world.

So what do you think? Is Guanxi still required in China? Is the Guanxi of today different from the Guanxi of yesterday? Let’s hear from our readers about your experiences!

January 6, 2008 | Filed Under Negotiating & Strategy, Sourcing Trends | 12 Comments 

Bluetooth Phone for Skype / VoIP Review

Bluetooth VoIP Skype Phone in Box

Today we introduce our first review of a VoIP phone that can be used with Skype, MSN, Yahoo and Google Talk. This phone (model WH100) is manufactured by the TGE Group out of Shenzhen, China. As more and more people start using VoIP services such as Skype for their day to day communication, the market for devices that feel like regular phones is sure to increase. Add in bluetooth and you’ve essentially duplicated the feeling of a cordless phone, but with the low cost afforded by VoIP.

The WH100 comes with professional retail packaging that is suitable for resale in western markets. The contents are visible through the front of the box allowing the phone and the included USB Bluetooth connector to be seen. The product is marked FC/CE compliant.

Skype bluetooth phone in packaging 2

Certifications

The phone itself is stylish, with grey plastic and a black bevel. The phone feels solidly built with regards to fit and finish but the quality of the plastic could better. The buttons are easy to access and the navigation control falls in a natural position.

VoIP Skype Phone

Dial pad

Recharging as well as system connection is done using the standard mini-USB port on the bottom of the phone.

Standard USB Connector

We were pleasantly surprised at how well the installation process went. After placing the CD into the drive on our Windows XP Professional laptop, we plugged in the included USB bluetooth adapter. We are told that if your system already has bluetooth, you don’t need this adapter but we did not verify all functionality. Once plugged in, Windows recognizes the device and the familiar ‘Found New Hardware’ balloon is displayed. Without even pointing to the driver, we received the message that our new hardware was ready to use.

Founds new hardware

Once the bluetooth is installed, we selected the “Pairing” button on the phone and the screen displayed “Bluetooth is connecting. Please wait.”

Bluetooth is connecting

Within a few seconds Windows popped up a message informing us that a bluetooth device was trying to connect. Clicking on the balloon authorized this connection.

Bluetooth request

Once all this setup was complete, we were keen to try the phone with Skype! With Skype opened, I clicked the “call” button on the phone and received a message on the laptop screen from Skype, informing me that a device was trying to connect.

Skype request

After authorization, all my contacts came up on the phone screen, indicating also whether they were on or offline.

Skype request

The screen quality is good but there are a few issues to note:

1. The text comes very close to the edges of the phone screen, making it a bit hard to read.
2. The screen is black and white and so the only way to distinguish between an online person and an offline person is a little X or + mark.
3. There is no way to only view online contacts so if you have a long contact list, it’s a bit difficult to navigate.

We often use SkypeOut to call landline phones and I was pleasantly impressed that dialing +1 and then a number did in fact execute a SkypeOut call. Overall the phone quality was decent. There did appear to be a bit of a “hum” in the background, which the manufacturer says should not be there. I cannot confirm whether it was an issue with the phone itself or with our connection, but it’s something to test yourself further with a sample if you’re interested in selling these types of products, whether from this manufacturer or another. The advertised range is 30 feet, but I think about 15 feet is more reasonable based on our experience.

Overall this is a good entry into the Skype phone market. It isn’t the highest end one but if you’re looking to import phones, TGE Group is worth talking with. Our contact there is Kevin Zhang and he can be reached at . You’re welcome to also contact us for more information or assistance through our Contact Us link!

January 3, 2008 | Filed Under Sample Reviews | Leave a Comment 

Trends affecting China sourcing in 2008

The China Sourcing Blog has an interesting post, Reflections on trends affecting China sourcing in 2008.

As Beijing celebrated the start of its ‘Olympic Year’ with a large outdoor music performance on Monday night, we might well look at some of the trends that could impact China sourcing in 2008.

Some feel that a combination of increasing raw material costs, tighter labor laws, and product safety concerns will finally slow the growth of China. Others feel that China will continue to grow quickly in 2008 and beyond.

What do you think?

January 1, 2008 | Filed Under Sourcing Trends | Leave a Comment