Posted by Maria Dimitrova

Read this if: You want to build your own house and furnish it on the cheap without sacrificing quality

Gain: Saving at least 20% of the money you would spend if you bought the materials from a local retailer

Cost: Additional costs for shipment, quality inspection and port clearance and some time to do the research

Building your own house is a major undertaking and a fascinating opportunity to harness your creativity, planning and organization skills and subsequently feel proud of the fruit of your efforts. Creating new things, especially something as big as a new home,  is one of greatest sources of satisfaction. But to enjoy the process, you will need to be sure that you have enough spare time available as it involves quite a lot of research and planning.

You’ll also have to find a way to reconcile your desire to build the home of your dreams with your budget to avoid going broke. One major budget saver is purchasing the raw materials and furniture directly from a manufacturer (as opposed to from a retailer), and the best place to do so is China.

Why import from China?

China has a reputation for poor quality, but this problem can be avoided by steering clear of electronics and complex technology and focusing on products where quality can easily be checked before the goods are delivered. China has become an important exporting country for marble, granite and other natural stone products. This country is capable of supplying high quality and low cost building and carving stones due to its low labor costs, rich natural stone resources, fierce competition between Chinese manufacturers and internationally recognized traditional workmanship. A big percentage of the materials and products offered by shops around the world are made in China but are sold at a marked-up price.

Here are some comments taken directly from discussion boards on the topic:

“A staircase that I really like from a “distributor” in Florida costs $27000 (twenty seven thousand). I found the EXACT same staircase from the Manufacturer in China on their Chinese web site. Quoted price from factory is 18800 RMB (Chinese currency), which converts to $2752. I also found the sofa that I bought for $2400 in the USA at the Chinese manufacturer for $300.”

“I recently installed kitchen units manufactured in China. I found the quality to be far superior to locally manufactured units. The knock-down units are stronger than the assembled units locally available and components such as handles and hinges are of high quality. The cost was about 30% cheaper than quotes I obtained from local manufacturers. Granite worktops imported from China cost about 40% cheaper than locally sourced granite.” Ahmed Motala

“It certainly will be much cheaper than in the UK!!I live in a small African island and many of my friends bought many materials in China(ceramics,floor tiling, plumbing, lighting, furniture…in fact anything you need for a house…even gates!) in Guangzhou.They all said it was worth it and it was cheaper by at least 20% which is a lot of money if you’re building a house, every penny counts.”

“Two young builders from Brisbane came to China last year and went shopping with me.
They bought their tiles,bathroom fittings, mouldings, electric switches, light fittings, a complete kitchen, ready to install.Their total cost was half the cost in Australia , after everything was paid and they ended up with something just as good, for half the price and different from all the other “Project Homes“.

“Curtains will always be very cost effective. If you’re prepared to spend 10 pounds per metre for the “Best Heavy Silk Fabric” you will be buying exactly the same as the 80 pounds fabic in the UK. However for even 3 pounds per metre you can find something nice that IS silk”

Researching the costs

You too can be one of these people happy with their decision to buy materials and furniture from China if you research and plan your steps carefully so that you avoid potential problems. The most popular website offering information and contacts with Chinese producers is www.alibaba.com.

• First check if the manufacturer you’ve chosen is legal and that the quality of their services and products is really good. Request trade references from their existing customers in America. You may also contact the local chamber of commerce in the city where the supplier is located to validate their business nature and credit history. If you order is large enough, you may want to pay a visit to China before finalizing the order to meet the supplier in person.

• When comparing the quotes of different manufacturers, make sure to compare the costs of goods only, unless what they quoted is “CIF” “to-door” delivery (costs, insurance and freight), as opposed to to FOB – free on board which just means delivered to the local port . Bear in mind the lowest prices which are below market value might mean very poor quality or a scam business. Calculate the additional costs which include:
  
  - the shipping cost
  - the port clearance costs in your home country
  - quarantine inspection service costs if applicable
  - VAT/GST/duty/excise etc if applicable

These costs can be obtained by speaking to a shipping agent. If you have factored these additional costs into the equation and the final cost is still significantly lower than what it would cost to procure the materials in the domestic market, then you should venture out to import from China.

Making your order

• All desired specifications of the goods should be included in the sales agreement, the more detailed the better, and state “no substitute material allowed”. For example, if you are buying “Emerald green” granite, specify the origin – Italian or Chinese because they both may exist under the same name but differ in texture and prices.

• Use a “letter of credit” (L/C) as the form of payment. Both parties are financially protected if they are determined to fulfill respective obligations as set forth in the sales agreement. Don’t agree to pay the whole sum in advance. The deposits are usually 30-50% of the price.

• Include a third-party inspection company’s certificate in the list of required documents.  On the webiste www.alibaba.com you will see that some suppliers have “golden” status. It is claimed that to qualify for a Gold Supplier membership, a supplier must complete an authentication and verification process by a reputable third-party security service provider appointed by Alibaba.com. And yet, you might come across complaints of disappointed customers by the services of a “golden” supplier. The safest option is to pay for an pre-delivery inspection done by a company you’ve chosen.

• Use air transport for small shipments from China or for goods that are  perishable or delicate in nature.

• You can ship your cargo from China by container ship, which is one of the most efficient ways to ship large cargo, especially if you can afford to wait for your cargo to arrive . Even if your ship cargo may not fill up a full container, you can still opt to share a container, but bear in mind that if you share a container with illegal goods, then the local customs department will return the entire container to China together with your shipment. If the cost of renting a full container doesn’t differ much from the cost of sharing a container, it may just be worth paying the extra to be assured that your goods will arrive.

• You can let the seller do the shipping for you as it isn’t much more expensive than doing it on your own. They would employ a shipping agency that would do all inspection as well as the paperwork necessary to ensure that your ship cargo arrives intact and in good shape.

• If you decide to use the services of a freight forwarder, they should pack your goods properly inside the container.

Remember importing from China is daunting at first but you will find it easier and easier each time. The savings from buying from China are real. Typically the mark up from when goods leave a Chinese factory to when you buy them in a western store are 400% (including taxes). Why give this margin to the retailer? The choice is yours.