1)   What is ICU?

-       With offices in Pawtucket, RI and Xiamen China, International Concepts Unlimited is an international sourcing company specializing in matching foreign construction and hospitality companies directly with manufacturers and sources in the Orient.  We have been sourcing items in China for 15 years.  Until the rules of foreign ownership of companies inside China changed this year we had worked out of Hong Kong, when the rules changed ICU immediately opened an office in Xiamen, China that  is owned without a Chinese partner.

 

2)   What is direct sourcing?

-       Direct sourcing is the business practice of buying goods directly at the manufacturer bypassing all importers, distributors and trading companies. 

 

3)   Why direct source?

-       Direct sourcing can usually save an end user 40% to 70% on material purchases with equal or better quality.  The customer is buying directly from the manufacturer, staging from China directly to the jobsite thereby reducing shrinkage and breakage.  You, the customer break the factory seal at your jobsite minimizing all the bad things that might happen in shipping.

 

4)   What is ICU’s role?

-       ICU acts as your sourcing department.  With an office in Xiamen China (centrally located in Fujian province) ICU can find sources, expedite and assure quality on all orders placed with us.  We will supply you with pictures during the manufacturing process taken by our people to assure you there will be no surprises when you open the container.   We will make sure you get what you spec’d, at the quality level agreed to, shipped on the day the factory promised to ship (or earlier).  We will also handle all of the paperwork and arrangements with the shipping companies and freight forwarders so all you have to do is pay that bill. 

 

5)   What items does ICU source?

-       We specialize in construction materials and have databases of vendors currently in the following categories: granite, marble, mosaic, cabinets, case goods, shower enclosures, cast iron tubs, fiberglass/vinyl tubs, faucets, shower fixtures, porcelain tiles, ballroom chairs, tables and fasteners.  But the reality is if a customer is buying an item by the container full from a distributor and the boxes say made in China we can usually find a source for that item and save the customer 40% to 70% within a week.

 

6)   How does shipping work?

-       Our terms are 50% deposit/ 50% at time of ship FOB Port China.  These are the same terms we get from the factories.  By adhering to these terms we are guaranteed delivery and our place in the production line. The Customer will own the goods before they leave China. To save our customers even more money, they will pay the freight forwarder directly saving the mark up we would have to charge were we to pay them.  The shipping companies will give them a price to the door of the jobsite where the goods are to be delivered.   The customer also saves money by not paying an additional markup on insurance or duties because the customer pays the freight forwarder those fees as well.

 

7)   How does ICU negotiate price quotes?

-       ICU does not negotiate prices with vendors, instead we use a competitive bidding process whereby the market forces vendors to be more efficient and give us their most fair prices each time.  By most fair we mean a price with a reasonable profit based on the spec.  Using this process we avoid the two major problems foreign companies encounter when they deal in China.  First, when we ask for a quote we are supplying a spec so we want to know how much the factory can legitimately sell the item we want.  If we negotiate a better price two things can happen…either we get the item we want or we get an item that looks like the one we spec’d but is slightly different because the vendor had to cut a corner to make the item at the price we negotiated.  Second if we ask for a quote get a price, then go back to the vendor and say factory X can do it cheaper and the vendor says I can do it for even less we want to know why they did not give us their best price the first time around wasting our time and we have no guarantee we are going to get the item spec’d at that point because we changed the rules.  We would in fact in both cases be getting the item the factory can make at the lower price which may or may not be the one we spec’d.  There is too much risk there for us.

 

8)   How are price quotes submitted to customers?

-       ICU believes that if a vendor can take the time to answer a request for a price quote then we can show them equal courtesy to submit the quote to the vendor.  Unlike traditional trading companies who will give a price, then shop the item to vendors and look to make money on the new margin, ICU submits all prices received to the customer with the same markup already included.  By submitting all of the prices we are very transparent in how we approach our customers business.  If we save money then they can save money.  At first all of the price quotes can seem very overwhelming…. some of our databases have over 80 factories…  but over time our customers have found two benefits to our quote process.  First they feel they have a broader understanding of the market that makes them more comfortable with the pricing they get.  Second as they do more business in a category they see patterns and get used to certain vendors quality.  They are more willing to go with a slightly higher price to get the quality they want.  Value starts to replace price as the primary factor in choosing a vendor.

 

9)   What if a customer wants to visit a factory in China?

-       We are happy to host customers at a factory or our office in China.  We will gladly supply translators, space in our office to meet and work if needed and bring customers to other sources, trade shows or wherever else they need or want to go.  We will only do this for customers who have ordered from us and/or who have committed to using us as their exclusive sourcing company for China.   We will always welcome a customer who has an open order with us to visit that factory to inspect or just see production.

 

10)   Can a customer contact the Xiamen office directly?

- At ICU we like to say we are always open.  You can contact the US office from 8:00 am until 8:00 pm and you can contact the Xiamen office from 8:00 pm (east coast time) until 8:00 am.  If a customer has a question they absolutely need answered then they are encouraged to contact Vicky and her staff in the Xiamen office.  They will do everything they can to help the customer.

 

11)    What are the warranties and guaranties given on products ordered from ICU?

-       ICU is not a distributor, importer or wholesaler, we are a sourcing company.  We are matching foreign companies with reputable Chinese companies thereby allowing the customer to achieve great savings by buying direct.  The warranty on goods is whatever the factory offers.  Most factories stand behind their product in shipping; unless the goods are directly handled by a third party (warehouse, Customs, or an LCL shipper).  It is important to remember that the factory seals the container and will have pictures of the container and seal showing the goods left China in good condition.  So if a customer breaks the seal and they find breakage or damage then they must document it before the goods leave the truck otherwise the factory will not stand behind a claim.  ICU guarantees through first hand visual inspections that what the customer ordered is what was shipped.