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Johny
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The whole reason I pulled out that comment of yours from another discussion is that, as far as I am concerned, it’s in the mindset, which should be pretty much the same regardless of the discussion.

“My only concern would be that you are best not to go into a relationship with ANY SUPPLIER or chain management group with an expectation that something is wrong or going to go wrong…..”

Given something can go wrong in any relationship isn’t it therefore better not to be in business at all?

Isn’t that therefore the reason you do due diligence to reduce the risk of something going wrong? And yet you use that very definite word “never” in this discussion.

The reason I found that comment of yours interesting was not to be pedantic, believe it or not, but in a much broader sense is very much what I am finding about the attitude of Australian business in general.

On the one hand there is a lot suggesting Australian business should engage with Asia, and on the other there is this mentality of finding reasons not to, with many of those reasons being that “something is going to go wrong”.

And rather than mitigate the risk, the standard response is “never” do it.

Or let me offer an example of two companies looking to export:-

Company A spends tens of thousands of $ on attending trade fairs, travel and accomodation costs, marketing costs which often include advertsing as well as costs for placement, samples for promotions, numerous additional travel costs, labeling costs, in many cases registration costs.

And all these costs are often the result of the importer or local distributor expecting the supplier to contribute towards them or pay them outright.

Company B spends say $10,000 (that is a figure plucked out of the air and would probably be much less), on sending several cartons of product to China, pays any costs after the product has been sold, and gets paid only after the product has been sold. Their importing costs are less and more streamlined, there is less stringent labeling, they get access direct to the end consumer, and it goes on a little more.

Neither Company A nor B is guaranteed a return, and yet, there are many, many company A’s out there, but a company should “never” be a company B.

Doesn’t make business sense to me for Company B the never be an option.