The presentation of the goods was spoiled at the packing stage in the factory, and our representatives found big scratches. We refused to take it and informed the client. The client confirmed that the goods were not ready for being sold.
Stages of solving the problem
The Chinese supplier didn’t want to fix the spoiled goods and thought that it was a minor defect. To fix the defective goods, we invited a bunch of independent inspection agents to the factory, among which was SGS – the world’s biggest inspection company.
They collected all the necessary materials including claim letters and a full package of documents in accordance with the Chinese law. We sent the official warning letter to the factory that said that we would bring the case to court in Guangzhou (China), where our Chinese export-import company was registered, the one, the manufacturer signed the contract with. After 3 days, we got a phone call from the manufacturer. He said that he didn’t want to go to court and would prefer to resolve the issues peacefully.
If the company, Chinese manufacturers have signed the contract with, is also Chinese, they will try to avoid court in 90% of cases. In this case, we attract government and require full investigation which leads to freezing of assets and losing time.
After several negotiations, we succeeded in reaching an agreement to take the goods 30% off. According to our calculations, that would be enough to take all the defective goods and send them to other factories to get fixed. The manager was present at the factory and reported on fixed goods daily.
The order arrived 1 week later, which was not critical for the client. All the products were sold out within 2 months, and, after that, the client placed the order again 3 times the size.