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Warum, mehr zu zahlen gutes China Geschäft ist

5. Februar 2008 durch China Geschäft Erfolg-Geschichten

Durch Dan Harris

Zahlung verbessert chinesische LeistungMein Freund Chris Carr, Dekan des CalPoly MBA Programms und der Gehirne hinter dem internationalen Geschäft Tour blog läßt einen sehr durchdachten Pfosten, erlauben, „Werden Sie, mehr änderung Verhalten zahlend und jemand ethischer zu bilden?“ Durchdacht, aber falsch.

Der Pfosten zentriert an, ob das Zahlen mehr Ihnen bessere Leistung und/oder bessere Ethik erhält, und Chris, der sagt hübsch ist viel, daß sie nicht:

„Einige schlugen vor, daß wir das Problem zu vielen defekten Produkten lösen könnten, die aus China kommen, indem wir mehr zu den chinesischen Lieferanten zahlten, die dieses Material bilden. Ich fragte diese Annahme und noch.

Ein Beispiel I gab dadurch, daß Diskussion Gewinde, daß wenn das Zahlen der Leute mehr das Problem löste, dann warum war, das meiste gute Resultat der Angestellten in der guten Leistung, aber nicht überlegene Leistung noch zahlend? (Sehen Sie Anmerkung Nr. 29.) Und warum, erhält den meisten schlechten Angestellten mehr Geld zahlend Stille Ihnen schlechte Leistung und nicht guter Leistung? (Wenn Sie glauben, daß mehr Geld mit höherer Leistung aufeinander bezieht, gekommen sehen Sie mich, nachdem Sie angestellt haben, gehandhabt und abgefeuert mehr als, lassen Sie uns einige Leute und Anmerkungen vergleichen.)“

Erlauben Sie mich zum deconstruct. Wenn Sie Ihren chinesischen Lieferanten underpaying, erhalten Sie schlechtes Produkt. Es ist einfaches das. Indem ich underpaying bedeute ich, daß, wenn Sie Ihren Lieferanten Yuan 1000 zahlen, um kupferne Rohrleitung zu bilden, die Yuan 1000 im Kupfer erfordert, Sie schlechte Rohrleitung erhalten. Garantiert. Ihre Rohre haben Yuan nicht Wert 1000 des Kupfers in ihnen. Sie werden gerade nicht. Paying 2000 Yuan for the piping will not guarantee you get 1000 Yuan of copper in them, but it certainly does improve your odds. Does anyone disagree with me on this?

Paying employees more does improve performance, and it does it in at least two ways. If you pay your good employees more, they are more likely to stay with your company and forsake all others. This allows you to retain good employees and overall company performance rises. The second way is more direct and, presumably, more what Chris had in mind. If you pay people well, they will be enthused about their job, like the company for which they work, and be more willing to give their all. I have seen this in my company’s employees and those of my clients and I have felt this myself.

Many years ago, my firm had two good sized vessel owning companies as clients. Both would have their vessels repaired mostly in China and Korea. One would bargain the shipyard down to its “absolute lowest price” and then be an incredibly slow pay and the other would not negotiate quite so hard and would always pay on time. My firm handled countless shipyard disputes for both of these companies over the years and I can tell you it was very clear to me that the better paying client was getting much faster and better (and I think, in the end, cheaper) service from the same shipyards. When we would call the shipyard on behalf of the better paying client, our calls would be returned promptly. Not so with the other client. At one point, both clients needed a vessel repaired quickly from the same shipyard and both were told it would take about a month. The shipyard was hugely busy and the better paying client got its vessel back in a month while it took two months for the other client. Is anyone surprised by any of this?

And what does “paying more” in the context of China manufacturing really mean, anyway? If it meant just willy-nilly raising the price paid to Chinese factories, I would completely agree with Chris. But I think it also means a willingness to pay more for such things as due diligence, good contracts, and quality control monitoring and nobody will ever convince me that these three things do not greatly increase the likelihood of good product from China.
Choose your side.

UPDATE: Just saw this post over at Time’s China Blog. May help prove my point.

Dan Harris is a founding member of Harris & Moure, an international boutique law firm.  He is also co-editor of China Law Blog.

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5 Responses to “Why Paying More Is Good China Business”

  1. Greg Bissky Says:

    Your last points need emphasizing. “Paying more” should not simply refer to paying the Chinese supplier/manufacturer more but should also refer (as you said) to spending more money on quality control, vendor training and other associated, “hands-on” activities. One area little explored is training Western staff back at HQ, especially executives (so they have a more realistic view of what to expect and ask for from China operations) and back office staff (so deals don’t go sideways during the order fulfillment stages).

  2. Brian Su Says:

    From my own purchasing experiences with Chinese factories, “Paying More” means better parts, better quality of products. Chinese factories could supply the same model of consumer electronics to various U.S. chain stores, however the level of quality for the same product may vary. It all depends on how much you pay the factory, the more you pay, the better parts they use!

  3. Leon Says:

    As a Chinese, I agree Chinese factories can provide the same product with various quality. But in fact Chinese are easy to cooperate with when you know the Chinese culture.

    Paying more is one good way to get good products and on time delivery, however, strong and positive attitude towards cooperation and a representative in China are also needed.

  4. ruth Says:

    That is not always the case. The more you pay, the better product or performance you will get. Normally that’s true.

  5. Peter Hayes Says:

    The characteristics of Chinese manufacturing capabilities and performance differ in two respects only to the rest of the world. Firstly, the capacity is huge on a global scale. Secondly, within that capacity there will be many hundreds of manufacturers who will offer to produce your product. The competition is fantastic. You must accept responsibility for specifying what you want in your product, including quality, packaging and delivery. Having specified very carefully, you must then continuously evaluate the supplied product against your product specification. This is simple stuff, but too often overlooked by consumers and importers. Criticising Chinese manufacturers is nonsense.

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