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PassageMaker's Service & Pricing

In exchange for a small fee, PassageMaker will recruit, employ, train & manage a dedicated team in China on behalf of the Client

Read First:  Is PassageMaker a good fit for your project?

PassageMaker started as a sourcing agency/ contract manufacturer almost 20 years ago and evolved into a provider of outsourced manpower.  In short, our clients assign PassageMaker to recruit, hire, train and manage dedicated teams for them, on the ground here in China.   Team members can be based in our China offices and/or assembly center/warehouse.  The team members in the office generally focus on Supply Chain Management (dealing w factories and clients in China) while the team in the warehouse conduct final assembly/custom packaging/inspection.

PassageMaker offers two fee structures:

  1. If the client manages the tasks assigned to the team, then a fixed retainer is applied.  The team can be as small as 1 person or as large as a few 100.  But  projects need to be large enough to keep at least 1 full-time employee busy in order to meet our minimum project scope.
  2. If the client wishes to have PassageMaker manage the team, then a commission is applied on the value of goods/services coordinated in China on behalf of the client.

Set up a dedicated team or hire a sourcing agent?

If your project is stable, your order size is over 100,000 USD per year and you need at least 1 person full-time in the China, then PassageMaker is good fit. Fill out the short questionnaire at the bottom of this page and we’ll get you a quote.

But not everybody has a stable or large project, so feel free to contact our sister company (www.SourcingServiceCenter.com) and they can recommend a suitable sourcing agency. The agents charge a small set up fee (500 to 1500 USD) to find suppliers and a commission (5 to 10% depending on volume) to manage the supply chain for you.

For projects under 100,000 USD per year a sourcing agent is probably the best fit.  But as PassageMaker’s commission is much lower than sourcing agents,  the PassageMaker model is more cost effective than the sourcing agencies for medium to large projects.

If your budget doesn’t allow you to engage PassageMaker or an agent, consider the following resources designed to help you successfully source from China: The Essential Reference Guide to China Sourcing (also on Amazon) and www.ChinaSourcingAcademy.com

Why Outsource?

  • Cost in the U.S.
  • US $ 37.29 per hour
    Labor rate invoiced to customers of a typical US-based assembly factory.
  • US $ 90,558 is the average annual salary (not even including bonus and benefits) for one US-based Purchasing Manager
  • Cost in China
  • US $ 2.29 per hour
    Minimum wage for a Shenzhen-based factory worker
  • The same amount of money could engage an entire team of China-based sourcing professionals at PassageMaker!

Service Overview

PassageMaker leverages its China-based infrastructure (China savvy management, SOP’s, business templates, quality systems, warehouse, assembly center, office space & business licensing) to recruit, employ, train & manage a dedicated team, on the ground in China, on behalf of the Client.

4 Point Cost Structure

  • Manpower

    Manpower comes in two forms:

    Support Staff (SS) refers to the client’s team members who are based in PassageMaker’s office.  These virtual assistants and administrators are responsible for managing the client’s supply chains. The full list of tasks commonly assigned to the SS is found here.

    Factory Staff (FS) are based in PassageMaker’s warehouse and provide the labor to manufacture, assemble, inspect and/or package the client’s product. Visit here to learn about PassageMaker’s facility in Shenzhen, China.

    Salaries and mandatory benefits for SS & FS are invoiced at cost.

  • Rents & Utilities

    (in the warehouse, assembly center, dorm and office) are also invoiced at costs in a transparent fashion.

  • Direct Expenses

    for the Bill of Material (BOM), Logistics & Project Expenses (tooling, sampling, FedEx…) are billed to the client under open book accounting.

  • PassageMaker’s Service Fee

    for provision of project infrastructure

    “Managed by Client”  (MbC)  Option

    Client directly manages the day-to-day activities of the team.

    Service Fee: Fixed Monthly Retainer.

    Fee is based on the number of  SS & FS assigned to the project.

    “Managed by PassageMaker” (MbP) Option

    Client assigns PassageMaker to supervise the day-to-day activities of the SS & FS.

    Service Fee: Fixed Monthly Retainer +  Commission.

    The small commission is applied to the value of the goods & services (Direct Expenses) coordinated by the SS & FS under PassageMaker’s supervision. Commission is not applied to the Manpower or Rent & Utilities.

Basic Info

Minimum Project Scope/ Minimum Monthly Service Fee (Please read before requesting a proposal.)

  • The SS or FS team can be as small as 1 person for new projects. Some of our larger projects have over 100’s of dedicated staffers.
  • In the past 12 months, on behalf of clients, PassageMaker was responsible for orchestrating multiple supply chains with a combined value of over 200 million USD.
  • While the typical client purchases between 2 and 20 million USD worth of goods or services in China per annum, we welcome startups and small projects if they are:
    • stable (minimum project term of 6 months),
    • show potential for growth and
    • can support our minimum monthly fee of 13,800 RMB per active month. This minimum fee allows PassageMaker to assign experienced staff and superior resources to each and every project.
  • Not everybody needs full time staff in China or has an on-going project (6 or more months).  If PassageMaker is not a perfect fit for your needs, please check out our sister company at China Sourcing Service Center (CSSC) as they specialize in short term/ limited scope projects.

Client’s Role

  • Sets the project tasks, objectives & timeline.
  • Selects the number of Support Staff (SS) and/or Factory Staff (SS) they wish to assign to the project.
  • Finances the project (BOM, Logistics & Payroll).
  • Provides reliable order forecasts, to the best of their ability.

Project Team when "Managed by PassageMaker"

Title

Overview

Location/Allocation

Financed by:

Support Staff (SS)

Recruited on behalf of Client for a specific skill set (sourcing, supply chain management, quality systems, engineering, sales, marketing, logistics or any other skills the client’s project requires).

They advance the client’s agenda on a day-to-day basis among the various entities engaged on behalf of the client.

Based in PassageMaker’s office

Assigned to project full-time

Client

Factory Staff (FS)

Recruited on behalf of Client for a specific skill set

The FS are local production line workers, inspectors and/or warehouse staff.

Based in PassageMaker’s Factory

Assigned to project full-time

Client

Account Manager (AM)

Responsible for overall project performance. Client’s primary point of contact in China.

Coordinates In-house Specialists (IHS) and Outside Specialists (OS) on an as-needed basis.

Based in PassageMaker’s office

PassageMaker

Factory Manager (FM)

Recruits, trains and manages the day-to-day activities of the FS. Sets up the production area per the client requirements. Leads the creation of the bi-lingual Product Quality Manual based on the specifications & work instructions provide by client. Responsible for creating & reviewing the KPI (key performance indicators) of each FS on a monthly basis. Responsible for managing lead times & quality standards.

Based in PassageMaker’s Factory

PassageMaker

Support Staff Supervisor (3S)

Recruits, trains and manages the day-to-day activities of the SS.

Responsible for reviewing the KPI (key performance indicators) of each SS on a monthly basis.

Based in PassageMaker’s Office

PassageMaker

In-House Specialists (IHS)

Members of PassageMaker’s advisory board, logistics team, human resources team, quality systems team, engineering group & accounting team, can be tapped by the AM and SSS to provide advice and expertise but not actual manpower.

Based in PassageMaker’s Office

PassageMaker

Human Resources: Compensation Packages & Mandatory Benefits

The salary of the Support Staff (SS) & Factory Staff (FS) is highly dependent on the work experience, language skills, level of education and job scope as desired by the Client.

Support Staff (SS) (Office Manpower)

Factory Staff (FS)

Classification

SS Level 1

SS Level 2

SS Level 3

SS Level 4

SS Level 5

FS Level 1

Description

Local Chinese with college degree, less than 2 year’s work experience, no special language or technical skills required

Local Chinese with college degree, less than 2 year’s work experience, basic English but no technical skills required

Local Chinese with college degree, 2-5 year’s work experience, no special language or technical skills required

Local Chinese with college degree, 2-5 years relevant work experience, English and/or technical skills required

Local Chinese with college degree, at least 5 years relevant work experience, technical skill or language required

Typical factory worker basic experience. Advanced education not required. Minimum wage.

Typical base salary RMB per Month

3000.00

4000.00

4850.00

5200.00

6200.00

2020.00

Monthly Salary adjusted for Month 13 year end bonus per standard practice in China

3250.00

4333.33

5254.17

5633.33

6716.67

2199.00

Office Staff Insentives: >KPI bonus (at the discression of client). PassageMaker suggests 10% of payroll be allocated to KPI fund. Dispursed on a monthly basis.

300.00

400.00

485.00

520.00

620.00

0.00

Factory Staff Insentives: KPI bonus (piece rate bonus) and/or OT. PassageMaker suggests 15% of payroll be allocated for this line item.

0.00

0.00

0.00

0.00

0.00

303.00

Dorm (800 RMB per room per month/ 4 people)

0.00

0.00

0.00

0.00

0.00

200.00

Meal Allowance & Mandatory Benefits (Tax, Housing fund, Insurance…)

1050.00

1400.00

1697.50

1820.00

2170.00

600.00

RMB

4600.00

6133.33

7436.67

7973.33

9506.67

3202.00

Terms and conditions of SS & FS employment will comply with relevant PRC labor laws and standard practices found in China, with regards to all aspects of employment, including but not limited to issues of severance, termination, maternity leave, mandatory benefits & working conditions.

Human Resources: Hours of Operation/OT Regulations: Factory

Factory

Typical Hours

Notes

Normal Hours of Operation

7:50am – 11:50
1:30pm-5:30
Monday to Friday

Per PM policy

Normal OT Session (if needed)

OT Session: 6pm-9pm Monday to Friday.

Per PM policy

Number of 8 hour shift per day

1

Running a night shift is possible. Additional fees would apply.

OT Rate: 6pm-9pm

150%

Per labor law

OT Rate: Weekend

200%

Per labor law

OT Rate: Holiday

300%

Per labor law

Total working hours per day (pre-OT)

7.66

Per labor law, 8 hour work day equates to 7hr40min “on the production line” + 2 standard 10 min breaks + lunch break

Workdays in Average Month adjusted for government holidays. Exclusive of sick days & paid/ unpaid leave as allocated by PRC labor law.

21.7

Human Resources: Hours of Operation/OT Regulations: Office

Office

Typical Hours

Notes

Normal Hours of Operation

9am to 12:30, 2- 5:30
Monday to Friday

OT

0

Office staff are generally not asked to perform OT. OT rates, if needed, would be 1.5X for afterhours, 2X weekends and 3X holidays.

Hours per normal work day

8

Office: Workdays in Average Month adjusted for government holidays. Exclusive of sick days & paid/ unpaid leave as allocated by PRC labor law.

21.7

Rent & Utility Reference Figures

Rent & utilities are minimal for most projects. For your quick reference, here are the latest rates for factory, warehouse and office space.

Space Reference Figures

Office Setting

RMB

Work space inside common area of PassageMaker’s Office

500

RMB per month per workstation per person. Inclusive of reasonable access to wifi, printer, meeting rooms, rest rooms, and recreation rooms (Coffee, bar billards, foosball).

Factory Setting

RMB

Rent for Dedicated space inside PassageMaker’s factory

40

RMB per SQM per Month. Fixed Rate.

Warehouse Fee in PassageMaker’s Common use area.

20

RMB per CBM. Applied at 3 phrases: in/out/per week.

This standard method of calculation allows for scalable sqm or cbm-based billing and can take into account multiple components that change size during the assembly process.

Take for example the case of a group of shoes being placed into their shoe boxes. Before assembly, 1cbm shoes + 1 cbm boxes = 2 cbm of billable space. However, once the shoes go into the boxes, then only 1 cmb is billable space. Our system is designed to prevent double billing and keep a fair record of actual space used at any given time.

Temporary Support Staff (TSS), Quality Systems Engineering (QSE), VAT Rebate Processing & China Sales Facilitation can be provided.

Man Power Reference Figures for Temporary Staff (if needed)

Description

RMB Rate

Units

Allocation

Temporary Support Staff (TSS) As Needed. Subject to availability. Temporary manpower provided by PassageMaker. Based in PassageMaker Office.

4500

1Man – Week

Available Allocations: Full time for X weeks, 1/2 Time for X weeks, 1/4 Time for X weeks.

Quality Systems Engineering (QSE) As Needed. Temporary manpower coordinated by PassageMaker. Base in PassageMaker office and factory to complete the client’s Product Quality Manual. (PQM)

425

1Man – Hour

Most PQMs Require less than 10 hours to complete

VAT Rebate Processing

Fixed Fee of 1.26% based on the FOB value of goods exported. Manpower, Infrastructure & Licensing provided by PassageMaker. For example, if the value of the order was 600,000 USD and the VAT rebate rate was 17%, and PassageMaker was appointed by the client to arrange the export & VAT rebate, then 102,000 USD rebate would be received by PassageMaker from PRC government. 7,560 USD would remain with PassageMaker as service fee and the remainder (94,440 USD) would be returned to the client via PassageMaker.

Domestic Sales Facilitation

A “Domestic Sales Facilitation” Fee of 3% is applied to the sales price in cases where Client appoints PassageMaker to invoice, collect RMB payments and/ or provide official receipts to Client’s China-based customers. Manpower, Infrastructure & Licensing provided by PassageMaker.

Let’s hear about your China project and Get you a proposal!

How much commission does PassageMaker charge and what would be the total cost to launch my project?

I’ve got good news for you! Our commission rate is about ½ of what the typical sourcing agent in China charges! Actually, our rates are even lower than a real estate agent back home, and we do a heck of a lot more for your business! No offense, Century 21 team.

Simply fill in the short questionnaire below to receive our rate sheet, a service proposal & formal quotation. We’ll set up a call and/or offer a tour of facility to help seal the deal! When all of your questions have been answered and you are comfortable with the arrangements, we can introduce the project team and get started! We look forward to being of service to you in China!

2 minutes: Estimated time to fill in the short form and submit a request for proposal/quotation. This short video walks you thru the questionnaire and explains what information we need to offer you a timely and accurate quotation for services. You may need a VPN if you are trying to watch from inside China.

Office Manpower

Select the estimated number and type of Support Staff (SS) you wish to have assigned to your project, based in PassageMaker’s office. You can find a benchmark for Support Staff salaries here, if you missed it earlier on the page.

Support Staff Level Four

Local Chinese with college degree, 2-5 years relevant work experience, English and/or technical skills required

Support Staff Level Five

Local Chinese with college degree, at least 5 years relevant work experience, technical skill or language required

Factory Manpower

Select the estimated number of Factory Staff (FS) you wish to have assigned to your project based in PassageMaker’s assembly/inspection center. If you are unsure about the number of Factory Staff required, please download our time study.

Factory Staff

Typical factory worker basic experience. Advanced education not required. Minimum wage

Desired Management Structure

Please select your desired option for the management of your team in China.

Space Requirements

Please input the warehousing and factory space required for your project.

(Each Support Staff (SS) in the office is offered a workstation, so leave Dedicted Office Space field blank unless you would like a dedicated area for your team.)

Monthly Production Forecast

Estimated purchase price in RMB of goods and/or services to be purchased in China.

Relax, this data is just an estimate and not a commitment. It simply is used to give us a feel for the scope of your project.

Average Monthly Order Forecast (RMB)

Monthly China Sales Forecast

Estimated sales price in RMB of goods and/or services to be sold domestically in China. This data is just an estimate and not a commitment. It simply is used to give us a feel for the scope of your project.

Average Monthly Sales Forecast (RMB)

Please allow 1 full workday for our team to get back to you. Additional time may be required during holiday periods in China and the West.  If you experience any complications with the form submission, please contact  info “at” PSSChina.com

By submitting this form, you will not only receive a quotation, but also enjoy:

  • Full and free access to the publications, video tutorials and whitepapers found in the resources section
  • Full and free access to our “China Business & Law” blog archives as well as a notice via email when new postings go public
  • Automatically join the PassageMaker group’s monthly newsletter: “China Business & Law Update for Busy Executives.”

We thank you for contacting PassageMaker and we hope you will benefit from the resources above, but know that you can opt out at any time.

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