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  Support Services > China Sourcing Feasibility > Pricing

Fee Structure for Sourcing Feasibility Study

In cases where client's utilizes PassageMaker for on-going services such as Assembly, Inspection and/or Vendor Coordination, then Sourcing Feasibility Study Fees may be refunded fully/partially upon reaching a pre-agreed level of business.

Research fees are based on:  

  1. The number of product classifications
  2. Complexity of the product
  3. Order size

Single production class projects are priced at a base rate of $3,000 and additional fees may be incurred depending on the complexity level and the size of the order.

1. What does "production classification" mean?

Example: If you are interested in sourcing a fruit basket (plastic fruit in a wicker basket), then there are 2 production classes involved. One class is "vacuum formed plastics" and the other is "wooden handicrafts".  Ensuring that the best overall price & quality is achieved requires that both industries (plastics & wood working) are explored.

2. What is meant by "complexity of product"?

Generally speaking, "off the shelf" or low-tech items require less up front research than new-to-market, technically advanced products.
New products require detailed explanation of specs to potential suppliers during the Request For Quotation (RFQ) phase.  Additionally, newer products often involve issues of confidentiality and patent protection.  Our research costs reflect these differences. 

3. How does order size factor into the cost of research?

SMALL ORDERS

It can be difficult to interest suppliers in small order sizes (10,000 USD and below per year). There certainly are suppliers willing to work on smaller orders, but finding them is more difficult.

LARGE ORDERS

Large order sizes (over 1 million USD) often require greater due diligence into potential partners to ensure suppliers do not become future competitors. Issues of logistics, lead times and duty rates must also be explored in great detail. 

STANDARD ORDERS

Most PassageMaker customers are shipping at the container load level, which in terms of US Dollars per year is between $80,000 and $500,000.  Our smallest project was for $2,000 worth of apparel and the largest for $52 million in auto parts.

Pricing Examples:

Example One:

Decorative Fruit (one production class)

  • Plastic Fruit of standard material
  • Ordering at the 40 foot container level

Production Classification

Availability / Complexity

Order Size

Research Fee

Vacuumed Formed Plastic

Standard

Standard

USD 3,000

 

 

Total

USD 3,000

Example Two:

Decorative Fruit in Wicker Basket (two production classes)

  • Decorative Plastic Fruit of Standard Material
  • Placed in flame retardant coated Wicker basket
  • Ordering at the 40ft container level

Production Classifications

Availability / Complexity

Order Size

Research Fee

Vacuumed Formed Plastic

Standard

Standard

USD 3,000

Wooden Handicrafts

Moderate

Standard

USD 4,000

 

 

Total

USD 7,000

 

 Example Three:

"Talking Fruit Basket" (three production classes)

  • Decorative Plastic Fruit
  •  Incorporating voice-activated recording device
  • Placed in flame retardant coated Wicker basket
  •  Order size of 1.3 million units.

 

Production Classifications

Availability / Complexity Factor

Order Size Issues 

Research Fee

Vacuumed Formed Plastic

Standard

Large

USD 4,000

Wooden Handicrafts

Moderate

Large

USD 5,000

Electronics

Moderate

Large

USD 5,000

 

 

Total

USD 14,000

No customer has ever complained that they paid too much for PassageMaker Sourcing Feasibility!

References readily available: Let us put you in touch with a current client in your area. PassageMaker will make every possible effort to meet potential customers in person to discuss your project details.

 

 
American Chamber of Commerce in China China-Canada Business Council American Society for Quality Institute for Supply Management Project Management Institute
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