Good suggestion for winch and hoist business in USA

日期: 2012年10月24日 上午1:05

Yang,

If you are willing to provide a minimum of $5,000,000 in liability insurance for your products through a US based insurance company I would give consideration to selling your hoists.

If not, thanks but no thanks.

Bob Peterson

10/24

Dear Bob Peterson

Thanks for the reply.

Maybe some Chinese companies and their products leave bad impression to you, but we are not.

We are Japanese KITO technology with Chinese workforce, we have customers in your country and their feedback is ok especially for end truck.

I think SEEING is BELIEVEING –

Best regards

Yang

10/24

Hi Yang,

Thank you for your email. 

I do not have any really bad impressions of Chinese companies but I do have some bad experiences with the US legal system.

If you are really serious about selling the US market I would be happy to get you a price quote for $5,000,000 worth of insurance based on say $1,000,000 in annual purchases from you.

Then if your product line is of high quality and you have competitive prices we can talk about having our 16 representatives across the country selling your product.

Cheers,

Bob

10/24

Hi Bob

But we never handle liability insurance in US before and have no experience for it.

Best regards

yang

10/24

Hi Yang,

You should look into it if you really want to penetrate the USmarket.  If you were the only Chinese manufacturer to offer such coverage you would have a huge selling advantage.

Just because it hasn’t been done before does not mean it isn’t a brilliant idea.

Cheers,

Bob

10/24

Hi Bob

Yes, we want to penetrate the US market and we are manufacturer.

Hope to work together with you, thanks.

Best regards

Yang

10/24

Yang,

Start with a commitment to providing liability insurance and we can talk.

The cost is very small compared to the potential benefit.

Cheers,

Bob

10/24

Bob

Can you give me some ideas and suggestions for providing liability insurance?

Best regards

yang

10/24

Yang,

I will contact my insurance agent and ask him to provide some idea as to cost and coverage.

It may be a few days before I get back to you but I will be happy to do this for you.

Cheers,

Bob

10/26

Yang,

My insurance agent is looking into the cost of insurance.  I expect to hear back from him tomorrow or Monday.

Cheers,

Bob

10/26

Bob

Thank you!

Best regards

Yang

11/3

Hi Yang,

The details will vary but for about $10,000 you could get $2 million in liability coverage which would be considered typical and normal for your type of product.

Let me know if I can be of any further help with this matter.

Bob

11/3

Hi Bob

I find it is 40 time compare to former, what’s the cost of liability insurance for this? Thanks.

Best regards

Yang

11/3

Hi Yang,

I am sorry I didn’t make myself clear.

The cost of liability insurances varies according to how much you sell.

So if you had $2 million in sales and you wanted to insure the company for up to $2 million worth of liability the cost would be $10,000 for one year of coverage.

If your sales were less the cost of coverage would be less.

I hope this helps.

Bob

11/3

Hi Bob

Ok, so the liability insurance is 0.5% of value.

Maybe initial deal is 10,000US$ and I buy 50US$ liability insurance for you, right?

If in that case, We accept buying liability insurance for all the goods exporting to you.

Best regards

Yang

11/3

Hi Yang,

Sorry, it’s more complex than that.  As I said, if you were willing to provide insurance, we could talk.

Now we can talk about your product line and your current distribution in the USA.  If you have an acceptable product line as to quality and range and if have not already set up other dealers/distributors, the talk can continue.

Cheers,

Bob

11/3

Hi Bob

Yes, we are willing to provide insurance.

Our main product line in US is electric chain hoist and end truck, attached Technical parameters.

We have customers but not distributors yet.

Best regards

yang

11/5

Hi Yang,

If you wish to answer the questions below, it would help me better understand the potential for us to work together.

1.        What are your current average annual sales in the US?

2.       How many customers do you have here?

3.       On average, how many orders have they placed with you per year?

4.       In what states are they located?

5.       What is your price structure ie, do you suggest a retail price with discount(s) or do you just provide a net cost?

Cheers,

Bob

11/5

Hi Bob

1, about 500,000US$ average annual sales in the US.

2, 4 customers available.

3, 12 orders per year on average.

4, states of Texas, Florida, Ohio and Tennessee.

5, we provide the net cost.

Best regards

Yang

11/5

Hi Yang,

Are your customers set up to distribute your hoists or do they sell them to end-users or use them on cranes they build and sell?

If so, do you have room in your pricing to allow for a discount to a true distributor who sells only to crane builders and hoist sellers? 

In other words, someone who would act on your part to distribute the hoists more widely.

Cheers,

Bob

11/5

Hi Bob

To be frankly, I never asked them.

Yes, we will give some discount for a true distributor but there are limit for sales volume.

Best regards

yang

11/5

Hi Yang,

Something to consider:   If you really want to develop a long term market and gain a significant share of the US market you need to have a presence here.

That could be in the form of a small warehouse facility with product in stock so you could fill orders for one or two units at a time as opposed to customers being required to place container load orders.  If you were to do this you could of course charge higher prices to reflect the higher cost.  This would not require you to have your own warehouse, it could be a shared facility where you pay for space and handling of orders.

You could also hire a manufacturer’s representative to handle your sales and marketing in this market.  They would not stock product but they would provide a “local time and language” contact for customers.  They would be able to pursue new customers and markets in a manner that is impossible to replicate via emails.

A combination of those two approaches would be to have a representative who sends you sales orders that are then shipped at your direction from a shared warehouse.

A manufacturer’s representative typically gets paid a commission of 8% of sales and a shared warehouse would have a flat charge for the space used plus a per order charge for handling.

The final possibility is to set up a true distributor who purchases, stocks and sells your product.  Although this has many advantages the disadvantage to you is it means you must reduce your profit margin significantly so the distributor can pay for all of their costs and make a profit selling your product.

Let me know if any of these possible paths to increase your share of the market here is of interest to you.

Cheers,

Bob

11/6

Hi Bob:
I like the final posibility, thanks
Best regards
Yang

11/6

Hi Bob:

Of course we will give you the best and competitive price.

Best regards

Yang

11/6

Hi Yang,

Your answer indicates my comments and advice as to what you need to do to be successful in this market went unheeded as the final choice is the one that doesn’t require anything on your part beyond filling a container or two with product.

It does not create any kind of presence for you here and it leaves you as the party without any “skin in the game.”  In other words, you can sell it and forget it as the product, as you know, is on a one way journey.

If you should ever change your mind and decide that after 38 years in the hoist business I have an understanding of how to be successful here, let me know.

Cheers,

Bob

11/8

Hi Bob:

I am interested in your success experience.

Best regards

Yang

11/8

Hi Yang,

I graduated from the University of  Oregon in 1974 with a degree in business administration.  After working for two other companies, I started APPI in 1983 and in addition to it I own two other companies – one that imports scale models of construction equipment and another that imports and manufacturers products for the automotive aftermarket. 

APPI started as a distributor but today we manufacture approximately 40% of the products we sell.  We have 12 independent manufacturer’s representatives who represent us across the USA.

My background in the winch and hoist business along with my other business experience is unique.  I have a reputation for solving problems and finding creative solutions.

I am painfully logical and enjoy taking poor arguments apart as much as I enjoy finding solutions to challenging problems.

My companies are successful and my insight into what it takes to create that success is based on that success.

If you want to sell from a distance I am willing to bet that even if you have some success, it will not be long term.

If you want to invest in this market I can help make you successful here.

Back to you.

Bob

11/8

Hi Bob:

I admire your success!

So your priority way for cooperation is to be our representative in US. And we paid a commission of 8% of sales to you, also pay for shared warehouse and handling per every order.

If in that case, how we begin? Thanks.

Best regards

yang

11/8

Hi Yang,

The first thing we need to determine is the appropriate opening inventory.  I would suggest you determine that by what your customers here have already ordered from you.

When you have determined what the inventory should be, that will allow me to calculate how much space will be needed for storage. I will make sure to minimize the “footprint” of your products while stored to keep the rent as low as possible. 

There are many other small details that we will need to confirm but this is the most important information right now. 

Please remind me of the city where your factory is located.  It will be after the first of the year before I make another trip to China but as you know, it is not too early to start planning.

I am pleased to have the opportunity to work with you.  I believe together we can create a very good market for your products here.

Cheers,

Bob

11/8

Hi Bob:

We accept what your said but only 4 customers available in US now.

Our factory is located in taizhou, Zhejiang province.

Best regards

Yang

11/10

Hi Yang,

I am going to take some time to put together a more complete description of my strategy so we can discuss it in whole, rather than just little parts and pieces as we have been doing in our emails.  My goal will be to show you a step-by-step process that will leverage your investment as much as possible.

I would appreciate it if you could put together as much information about your company and products as possible.  I know I have seen bits and pieces but I would like to have as much as possible in one place.  Please include a short history and your relationship with Kito.  I would also like to know where else you have sales and what standards your products meet.  I also need to know how you test your products and your warranty/repair/defect history.

Based on this information, my immediate goal is to quickly build a solid foundation upon which we can grow sales for you.

Cheers,

Bob

11/10

Hi Bob:

Thank you.

Attached Catalogue for electric chain hoist and end truck we sold to US.

Relationship with Kito: We are the same technology of KITO since we employ retired KITO engineers and do some improvement, the main difference is we don't have overload clutch.

We also have customers in Canadain north America, attached test standard and Testing procedures.

Warranty: 1 year.

Repair: customers send back goods to us and we will repair and send you, customers just bear the transport cost for sending back goods to us.

Defect history: No customer complain till now.

Best regards

Yang

11/13

Good morning Yang,

Thank you for the additional information.  I think there is a good opportunity to expand your sales in North America.

I am working today on a presentation that I must give tomorrow and then my proposal for you will be at the top of my list to complete.

Cheers,

Bob

11/19

Hi Yang,

It is basic at this time but here is an overview of how I see us being able to work together to increase your sales in the USA/NA.

1.        I will provide you with a non-disclosure statement.  This is my formal way of saying I will keep anything you share with me private and confidential and not share any information we share with anyone else.

2.       I will need a sales report for your customers here.

3.       After analyzing that report we can work together to determine what products would be best to stock here.

4.       After a stock level based on past sales and expected sales, I will select a place for the warehousing and shipping of your products.

5.       Sales procedure:

A.       When a sale is made, buyers will be directed to send payment directly to you.  We can determine the best way to make payment as we move forward.

B.      When you have received funds, my commission can be sent to my agent/representative in China.

C.      When it is confirmed that my commission have been received, I will authorize the shipment of the product to the customer.

Product questions:

1.        Do you want to sell your product here with your brand name on it or do you want to put an “Americanized” name on them?

2.        Have you consider the effect on the performance of your hoists here given our standard voltages are 120/240V @ 60 hz?  If your existing motors are run on our voltage the lifting capacity will be greatly reduced.

3.       I can help you rewrite your catalogs in “American English” along with the correct performance based on the voltage we have here.

4.       You will need to provide instruction manuals and again, I will help you with that task.

Again, this is a basic overview but it is important we get all of these issues addressed now.

Cheers,

Bob

11/19

Hi Bob:

Thanks.

Attached two sales report (PI) we dealt recently

Product questions:

1.        Do you want to sell your product here with your brand name on it or do you want to put an “Americanized” name on them?

Both are ok, we check which is better for sales.

2.        Have you consider the effect on the performance of your hoists here given our standard voltages are 120/240V @ 60 hz?  If your existing motors are run on our voltage the lifting capacity will be greatly reduced.

120V is unavailable now, 240V @ 60 hz has no problem

 3.       I can help you rewrite your catalogs in “American English” along with the correct performance based on the voltage we have here.

Thank you

4.       You will need to provide instruction manuals and again, I will help you with that task.

 Attached instruction manuals (operation’s manual)

Best regards

yang

1/26/2013

Hi Bob:

Hope you had a wonderful Christmas break.

Wish we could work together in the new 2013!

Best regards

Yang

1/29

Dear Mr. Xinhua Yang,

Please forgive the slow response to your emails. 

Mr. Peterson had major surgery just before Christmas and has been out of the office since then.

He is doing well and will return to work on February 1^st.

Your patience during his time of recovery is greatly appreciated.

On his behalf,

Cheryl Frisch

Office Manager

1/29

Dear Cheryl Frisch

I am sorry to hear that.

Best regards

yang

2/9

Dear Yang,

Thank you for your patience during my absence from work.  I am working at getting back to a full time schedule.  I expect to be back to full speed within the next week or so.

Best regards,

Bob Peterson

7/1

Hi Bob:

How are you?

Pls keep me informed if any update, thanks.

Best regards

Yang

7/2

Dear Yang,

Thank you for your email.  My recovery has been slow and steady and although I do not always feel 100% I am back to work full time.

I am sorry I dropped out of sight without any comment or warning but when the doctor found my problem I did not have any time to think about it.

If you wish to continue our discussions please let me.

I hope you are doing well.

Cheers,

Bob

7/3

Dear Bob:

We wish to continue but I think it’s better to wait for your 100% recovery.

Best regards

Yang

9/19

Dear Bob:

It’s a long time since our last talk, how are you?

We are interested to work with you, if we have stock in US, could you find customer for us?

Best regards

yang

9/20

Dear Yang,

Thank you for your email.  It has been a slow process but I am now in almost all ways fully recovered.

We have completed a new building so we now have room to warehouse a basic stock of hoists.

I think the best first step is to look at pricing and determine if we could function as a connection between you and hoist distributors who sell the majority of hoists here.  We have just recently had our product selected by Amazon for selling on their site so this is another potential sales avenue to consider.

Again, thank you for your email – I hope you are doing well too.

Bob Peterson

9/19

Dear Bob:

Great, I am glad to hear that.

Dual voltage (reconnectable 230/460), 3phase, 110V control voltage:

The price is CFR  Port of your local, pricing structure for $ 100,000 net orders. Which includes commission of 8% of sales and a shared warehouse.

Best regards

yang

9/23

Dear Yang,

I have asked one of my salesmen to do some basic price comparisons. 

When you have the opportunity, please send me a website link so I can show your product to my crew.

Thanks –

Bob

9/23

Dear Bob:

Thanks.

Website: www.ramhoist.com

Best regards

Yang

10/15

Dear Yang,

We have done a very careful review of our current customers and their potential interest in your chain hoists.  The issue we face is that many of them are distributors for domestic brands and would see your product as a threat to their current business.

Therefore we are thinking we should establish a separate entity to sell the chain hoists.  We would of course use our current location and administrative staff but we would separate the selling and marketing functions.

If this is acceptable to you we can continue to examine this possibility.

Best regards,

Bob

10/15

Dear Bob:

Yes, we often think about this possibility this year.

Parts made in china and assemble, test, paint in US, we need three lines: assembly line, the paint line, testing line, then our goods is US labeled.

We sure can beat your domestic brand since as you know chinese made is cheap.

But the main problem now is we don’t know how far we could go, we need to have some customers to accpet and buy our products, We must make sure all our main three lines will work every day and not stop after we install, otherwise it is too risky to invest in initial period.

Best regards

yang

10/20

Dear Yang,

I talked with our attorney about being able to label the hoists as Made In America and he said even if we paint, assemble and test here it does not pass the “content” requirements of US Customs.

Also, as US labor costs are so high it would increase the cost of the hoists.

So to sell in the US will require showing potential customers the quality of the product, your certifications and that you have a business presence here.

Having a business presence would include a full time representative, inventory on hand, a website, catalogs specific to the US and possibly most important of all, liability insurance.

All of these of course are cost factors but without this kind of investment you will always to be limited to the few customers willing to take a chance on ordering from China.

To me this is a classic case of determining how to best lever the smallest investment into the largest return without making too small of an investment.

Best regards,

Bob

10/24

Dear Bob:

I talked with our attorney about being able to label the hoists as Made In America and he said even if we paint, assemble and test here it does not pass the “content” requirements of US Customs.

 Why? Taiwai hoists “blackbear” and japanese hoists” KITO” and “Elephant” all use this way and sell very well in US market.

Also, as US labor costs are so high it would increase the cost of the hoists.

 We assemble small parts in china firstly, only last assemble in US and does not need so much US labor costs.

So to sell in the US will require showing potential customers the quality of the product, your certifications and that you have a business presence here.

 Several customers we sold in US, till now we don’t find quality problem yet. We are CE and ISO certificated. our existing customers are satisfied by our hoists.

Having a business presence would include a full time representative, inventory on hand, a website, catalogs specific to theUSand possibly most important of all, liability insurance.

 Yes, that is what we think next.

All of these of course are cost factors but without this kind of investment you will always to be limited to the few customers willing to take a chance on ordering from China.

 Yes, but we need to have some customers to accpet and buy our products firslty, otherwise it is too risky.

To me this is a classic case of determining how to best lever the smallest investment into the largest return without making too small of an investment.

Yes.

Best regards

Yang

11/13

Dear Bob:

May I have your kind reply?

Thanks and best regards

Yang

11/14

Dear Yang,

It has been very hectic for me and I apologize for not responding in a timely fashion.

My responses are below.

Best regards,

Bob

2014-10-24 12:39 GMT+08:00 xinhua yang <chainhoist@gmail.com>:

Dear Bob:

I talked with our attorney about being able to label the hoists as Made In America and he said even if we paint, assemble and test here it does not pass the “content” requirements of US Customs.

 Why? Taiwai hoists “blackbear” and japanese hoists” KITO” and “Elephant” all use this way and sell very well in US market.

It is possible to say “Assembled in USA” but not “Made in USA”.  I looked at their websites and I could not find anything to indicate they claim their products are made here so I think the best way forward is to prove the quality of the product.

Also, as US labor costs are so high it would increase the cost of the hoists.

 We assemble small parts in china firstly, only last assemble in US and does not need so much US labor costs.

Based on the lack of advantage in assembling the hoists here I think it best to bring them in ready to install and operate.

So to sell in the US will require showing potential customers the quality of the product, your certifications and that you have a business presence here.

 Several customers we sold in US, till now we don’t find quality problem yet. We are CE and ISO certificated. our existing customers are satisfied by our hoists.

This is a good starting point.  Are these customers users or resellers?

Having a business presence would include a full time representative, inventory on hand, a website, catalogs specific to the US and possibly most important of all, liability insurance.

 Yes, that is what we think next.

So in order of lowest expenditure for greatest return I would suggest creating a website, then catalogs, then finding a sales representative and finally establishing a full business presence with inventory and insurance.

All of these of course are cost factors but without this kind of investment you will always to be limited to the few customers willing to take a chance on ordering from China.

 Yes, but we need to have some customers to accpet and buy our products firslty, otherwise it is too risky.

Agreed.  The search for customers can begin as soon as there is a website, literature and a sales rep.

11/15

Dear Bob:

I talked with our attorney about being able to label the hoists as Made In America and he said even if we paint, assemble and test here it does not pass the “content” requirements of US Customs.

 Why? Taiwai hoists “blackbear” and japanese hoists” KITO” and “Elephant” all use this way and sell very well in US market.

It is possible to say “Assembled inUSA” but not “Made inUSA”.  I looked at their websites and I could not find anything to indicate they claim their products are made here so I think the best way forward is to prove the quality of the product.

Agreed, we will sell hoist to US customers, if they are not satisfied by the quality, they can return back goods and we will return money to them.

Also, as US labor costs are so high it would increase the cost of the hoists.

 We assemble small parts in china firstly, only last assemble in US and does not need so much US labor costs.

Based on the lack of advantage in assembling the hoists here I think it best to bring them in ready to install and operate.

ok

So to sell in the US will require showing potential customers the quality of the product, your certifications and that you have a business presence here.

 Several customers we sold in US, till now we don’t find quality problem yet. We are CE and ISO certificated. our existing customers are satisfied by our hoists.

This is a good starting point.  Are these customers users or resellers?

resellers

Having a business presence would include a full time representative, inventory on hand, a website, catalogs specific to the US and possibly most important of all, liability insurance.

 Yes, that is what we think next.

So in order of lowest expenditure for greatest return I would suggest creating a website, then catalogs, then finding a sales representative and finally establishing a full business presence with inventory and insurance.

May we use our existing website and catalogs (english version)? Could you be our sales representitave in the initial period?

11/15

Dear Yang,

Please send me the link to your website again on a separate email.  I will forward it without opening it to a friend of mine and ask him for his opinion as to whether he thinks it would be suitable as is for use here.

I will do as much as I can for as long as I can to help.  However, the amount of time I have available to devote to directly selling your product line is very limited.  This means finding a full time representative needs to be “sooner than later.”

Best regards,

Bob

11/15

Dear Bob:

Website: www.ramhoist.com

Attached catalogue of our electric chain hoist.

Best regards

Yang

11/16

Dear Bob:

I have sent website and catalogue of our electric chain hoist in a separate email.

Thanks for your limited time and help.

full time representative is a must for long term success, but firstly We still need to find several customers, place several orders and make them to be our fixed customers.

We need step by step.

If everything goes on well, I will fly to your side to discuss this opportunity in 2015.

Best regards

yang

11/25

Dear Yang,

I have reviewed your catalog and website with some of my close business associates and they all agree the website needs to be modified to appeal to US buyers. 

I have also talked to a few of our customers as to their interest in selling chain hoists.  Most have shown interest but none of them want to commit until they see the actual product.   So as we say here, the horse must come before the cart.

We are now getting into our holiday season with Thanksgiving, Christmas and New Year coming close to each other but I will work to find time to put together a quick layout for what a web page could look like for aUSbased website.

Best regards,

Bob

2/5

Dear Bob:

We have a batch of electric chain hoist and electric wire rope hoist in stock at this moment, they come from a UScompany which failed to pay us in cash. now our company want to sell them with lower price to save the stock cost. I am wondering if you are interested in it.

I believe you will make big profit if you can sell them in your country.

Thanks and best regards

yang

2/6

Dear Yang,

Please advise as to the hoists you have available and their cost.

Thanks –

Bob

2/6

Dear Bob:

Electric Chain Hoist w/ electric Trolley and with a bottom block w/ 10' lift

Voltage 230/ 460V, 3 phase, 60 htz, 110v control

Electric Wire Rope Hoists w/ bottom block w/ 20 ft lift

Voltage 230/460V, 3 phase, 60 htz, 110v control

Best regards

Yang

2/17

Dear Yang,

Thank you for your generous offer but If you wish to ship these hoists to us at your expense I will do the following for you:

1.       I will store them in a secure, heated warehouse space for a flat charge of $1,200 per month.

2.       I will work with you to sell them to your existing distributors and seek new distributors with you.

3.       For reasons of liability, the payment for hoists, including shipping costs, will be made to you so that I only handle the product, I do not the sell it.

4.       When a hoist is sold I will ship it per your instructions for a charge of 8% of the total selling price with a minimum charge of $100 per shipment.

5.       I will act as a warranty liaison for you and help resolve warranty issues for you.

6.       If you should want to end this service at any time I will ship any remaining hoists to a single location for a fee of $100 per hoist plus the shipping cost.

I know this is similar to the offer I made that you refused but this arrangement will allow you to get your product in the US market while developing distribution at a minimum cost.

Please note that I believe it will be difficult to sell the smallest hoists without 110 V single phase motors and the mid-range units without 220 V single phase motors.  I also believe customers will want the option of low voltage controls.

I understand this is not the best of news to you but I hope it is helpful.

Best regards,

Bob

2/17

Dear Bob:

Thanks.

Since we have very few customers in US market now, what we want to do is to sell directly to US market customers firstly, of course, I will pay you commission of 8% after the order, you can introduce customers to me, I sell to your customers directly or I sell to you side and your ask customers to pick up in your side.

Since we want sell to save the stock cost, so the price is very low.

We will change the hoist to normal 380V after Chinese lunar year to sell if no US customers interested.

Best regards

yang

2/19

Dear Yang,

Please confirm I understand your message:

1.        You want to sell directly to customers here.

2.       If I send you customers you will pay the 8% commission to me.

3.       If I sell a hoist to a customer you will ship the hoist to me and I can send it to my customer.

4.       The price is low so you can sell the current stock.

5.       If the hoists don’t sell soon you will convert the motors to 380V.

It is just my opinion but my 40 years of experience in this industry has taught me that customers evaluate the total cost of a product for industrial use.  In this case a low cost hoist, high cost shipping and lack of any local support make the potential total cost very high.

I understand my proposal for selling the hoists means that you have to make an investment in product and storage space but it is small compared to the potential return to you.

If you wish to sell the hoists one-by-one from your location I really don’t believe I can help you as my customers do not make purchase decisions solely on the cost of the product.

Best regards,

Bob

2/19

Dear Bob:

1.        You want to sell directly to customers here.

2.       If I send you customers you will pay the 8% commission to me.

We have very few customers in US market and you can understand that we don’t have customers in US now, I want to sell the hoists to the customers you introduce to me, I will pay your 8% commission, but premise is that you introduce your customers to me and they buy lastly.

3.       If I sell a hoist to a customer you will ship the hoist to me and I can send it to my customer.

yes

4.       The price is low so you can sell the current stock.

yes

5.       If the hoists don’t sell soon you will convert the motors to 380V.

yes

Why I refuse your previous proposal since we have only few customers in US and we dare not to invest.

If we have some customers and grow bigger, we will consider your proposal to invest.

Would you help me to catch some customers and grow bigger with us firstly, win-win.

Best regards

yang

2/20

Dear Yang,

I fully understand your position but I believe it will be a very slow and difficult process to find customers here when there is no local inventory or product support.

I would suggest for what you are trying to accomplish you put listings on ebay or other on line selling sites.  It is probably the best approach to learning if you can get into the US market without making any kind of investment.

Best regards,

Bob

2/19

Dear Bob:

That’s a compromised way.

Ebay is a retailed market, if people buy 1 pc hoist, the transport cost will kill me.

Best regards

Yang

2/28

Hi Yang,

One of my personal sayings is that you can’t hit the jackpot if you don’t put a nickel in the slot machine.”

Of course that dates me as there are no longer any nickel slot machines but the point is that without some kind of investment it’s impossible to get a return.

I cannot think of any way you can make a lower investment to get into the US market than what I outlined for you.

By way of contrast, when another Chinese company decided to get into the US market they rented a warehouse close to my location for $12,000 per month, hired two US employees at a cost of approximately $10,000 per month and put one of them on the road making sales calls all across the US at a cost of probably another $5,000 per month.  If you add in the rest of their overhead it probably costs them $35,000 per month to be in business here.

I do not have any accurate information but I am guessing it took them at least a year before their sales were enough to cover their costs. 

I am not suggesting you make this kind of investment but again, I don’t think there is any way for you to get into this market on strictly a “pay as you go” basis.

Best regards,

Bob

1/15

Dear Bob:

Happy new year 2016!

May the new year bring your peace, happiness, joys and fortunes.

Best regards

yang

1/15

Hi Yang,

Thank you for your kind wishes.  I hope the New Year also brings you good health, happiness and success.

Cheers,

Bob

3/3

Dear Yang,

It has been a long time since we have communicated so I will start by saying I hope you are doing well and in good health.

I have been very busy but I am happy to say all is going well for me and my family.

The reason for my email is that I have a requirement for 600 special chain hoists.  The basic specifications are shown below.

Our customer would require approximately 50 units to be delivered each month.

Lifting capacity: 350 kg  

Lifting height: 90 meter

Minimum Lifting speed: 25m/min

60 Hz operation

I understand the specifications are unusual but what I have shown above is what they wish to purchase.

Please let me know of your interest in this opportunity.

Best regards,

Bob Peterson

3/7

Dear Bob:

Sorry for my delay and hope all is well in your side.

550US$/unit (FOB china)

Single fall, 230V or 460V.

Best regards

yang

 3/7

Dear Yang,

Thank you for the quotation.  Can you provide me with product information, including dimensions.

Our customer has requested UL approval for the hoist.  Can you meet this requirement with your products?

Thanks again –

Bob

3/8

Dear Bob:

Attached technical drawing.

Regret UL approval is unavailable, it is not a must inUSmarket.

Best regards

Yang

3/8

Dear Yang,

Thank you for the drawing.  I will share it with our customer tomorrow.

A UL rating for a hoist is not common here but this customer is based in Germany so they are looking for quality and safety assurance.

Do you happen to have an equivalent CE rating that could satisfy their requirement?

Without it they will not consider the purchase of your hoists.

Best regards,

Bob

3/8

Dear Bob:

Yes, we are CE listed, and will mark CE on the hoist when delivery.

It is OK for selling in Europe countries.

Best regards

Yang

3/21

Hi Yang,

We are trying to convince them to consider the CE mark but they are insisting on UL.

I will keep you posted.

Bob

4/10

Dear Yang,

The customer has said they will not accept a hoist without a UL mark.

We will keep looking for customers who need chain hoists.

Bob

4/10

Dear Bob:

If we apply UL mark, will the customer confirm to place order for us?

It is not a small amount to apply UL.

Best regards

Yang

4/10

Dear Yang,

I will check with the customer and first confirm they have not yet placed an order.

I can tell them if they order the hoists they will be provided with the UL mark.

I understand getting the UL mark is expensive so there is no reason to apply for it without an order for the hoists.

Cheers,

Bob

4/19

Dear Yang,

The customer has decided this must be a wire rope hoist.

As noted, I will keep looking for opportunities for sales.

Best regards,

Bob

4/19

Dear Bob:

Thanks.

Best regards

yang