1 00:00:00,080 --> 00:00:03,279 Speaker 1: It's not only China sourcing, it's global sourcing. So we 2 00:00:03,359 --> 00:00:05,280 do of course China is still a strong market for it, 3 00:00:05,360 --> 00:00:07,559 but also the ones for example, if we do look 4 00:00:07,559 --> 00:00:09,640 into getting out of China, I mean we do global 5 00:00:09,679 --> 00:00:13,199 product sourcing. That's what we call Signify global product sourcing. 6 00:00:13,240 --> 00:00:15,119 But what we usually bring to the table is that 7 00:00:15,839 --> 00:00:18,760 most of the companies who have either raw material to 8 00:00:18,800 --> 00:00:22,120 purchase or they're getting private label products done through third 9 00:00:22,199 --> 00:00:25,559 party manufacturers, they don't usually have the time and or 10 00:00:25,600 --> 00:00:30,000 the knowledge of finding about thirty potential producers, contacting them, 11 00:00:30,079 --> 00:00:33,520 getting quotations, comparing the quotations, and negotiating one against the 12 00:00:33,600 --> 00:00:34,119 other one. 13 00:00:34,240 --> 00:00:38,159 Speaker 2: You're listening to Carrie Letz's Financial Survival Network, where you 14 00:00:38,200 --> 00:00:42,119 get valuable information you just can't find anywhere else to 15 00:00:42,320 --> 00:00:46,320 thrive in today's trying times. You need the Financial Survival 16 00:00:46,359 --> 00:00:51,079 Network now more than ever. Go to Financial Survivalnetwork dot 17 00:00:51,119 --> 00:00:55,439 com and get your free newsletter and gift. Financial Survival 18 00:00:55,479 --> 00:00:58,399 Network now more than ever. 19 00:01:01,600 --> 00:01:04,840 Speaker 3: And welcome you are listening to and watching the Financial 20 00:01:04,879 --> 00:01:07,920 Survival Network. I'm your host, Carrie Lutz. Hey, you know, 21 00:01:08,040 --> 00:01:11,599 for a while I've been helping businesses turn around and 22 00:01:12,239 --> 00:01:14,640 well person you're about to hear from, not exactly the 23 00:01:14,680 --> 00:01:19,079 same kind of business, definitely related. Name is Sebastian Hers, 24 00:01:19,319 --> 00:01:23,920 and you help businesses increase their profits by cutting costs, 25 00:01:24,239 --> 00:01:27,439 which is something that every business should be doing on 26 00:01:27,519 --> 00:01:31,519 a monthly or a very least a quarterly basis Sebastian. 27 00:01:31,560 --> 00:01:33,359 It's great to have you on the show. How'd you 28 00:01:33,400 --> 00:01:34,760 get into this? Harry? 29 00:01:34,799 --> 00:01:36,359 Speaker 1: Thank you so much for this? And I think you 30 00:01:37,079 --> 00:01:40,359 hit like a very very good use case. Aud you 31 00:01:40,359 --> 00:01:41,760 say it does an English like you hit a nail 32 00:01:41,760 --> 00:01:45,879 on the head. You should look, of course, especially when 33 00:01:45,879 --> 00:01:48,159 it comes to turning your business around, whether you're spending 34 00:01:48,200 --> 00:01:51,920 too much or not. And we're sourcing companies, so we're 35 00:01:51,920 --> 00:01:55,159 finding manufacturers negotiating prices and reducing the purchasing costs. 36 00:01:55,200 --> 00:01:57,959 Speaker 3: That's the ultimate target, of course for it. And how 37 00:01:58,000 --> 00:01:58,760 do we get to this? 38 00:01:59,439 --> 00:02:01,519 Speaker 1: Well, I got to admit it's not me, it's my 39 00:02:01,599 --> 00:02:05,079 better half. She's been doing sourcing all her life long. 40 00:02:05,680 --> 00:02:07,959 I should usually not say that she's been doing sourcing 41 00:02:08,000 --> 00:02:10,919 for twenty years, but only nineteen years, because she's not 42 00:02:11,159 --> 00:02:12,039 don exaggerated. 43 00:02:13,840 --> 00:02:15,840 Speaker 3: And we used to both. 44 00:02:16,759 --> 00:02:19,680 Speaker 1: She's from Russia, from Germany, and we both used to 45 00:02:19,680 --> 00:02:22,520 live in China, so we got to know each other 46 00:02:22,560 --> 00:02:27,879 in China. I'm an electrical engineer and stayed with a 47 00:02:27,960 --> 00:02:31,439 large Swiss company for twelve years, and she's been doing sourcing. 48 00:02:31,560 --> 00:02:34,639 Then in the end of China, I started building my 49 00:02:34,680 --> 00:02:38,039 first private label product business and all of a sudden, 50 00:02:38,080 --> 00:02:40,599 of course sourcing was one of the topics for myself. 51 00:02:40,680 --> 00:02:44,039 And she bothered me three times, or it bothered is 52 00:02:44,039 --> 00:02:47,360 the wrong word, but usually when what can you not 53 00:02:47,439 --> 00:02:48,240 do against women? 54 00:02:51,439 --> 00:02:52,639 Speaker 3: You can't win against them? 55 00:02:52,680 --> 00:02:54,800 Speaker 1: So three times she asked me in it all right, 56 00:02:54,840 --> 00:02:57,879 I'll join you. And this all of a sudden is 57 00:02:57,879 --> 00:03:00,759 how we then got together with Signified Global Product Sourcing 58 00:03:01,080 --> 00:03:03,120 into a deeper, more and more sourcing together. 59 00:03:03,840 --> 00:03:09,520 Speaker 3: Yeah. Never never argue with a woman. You can only lose, right, 60 00:03:10,840 --> 00:03:11,479 I like that one. 61 00:03:11,560 --> 00:03:14,479 Speaker 1: I think that's that's hitting and nail on the head again. 62 00:03:15,400 --> 00:03:20,719 Speaker 3: Yeah, hice. So all right, so you were out expert 63 00:03:20,759 --> 00:03:24,039 in China outsourcing and it kind of led to this, 64 00:03:24,240 --> 00:03:27,000 and what do you think you bring to the table, Like, 65 00:03:27,439 --> 00:03:33,960 what is your your avatar, your typical archetypal. Buy in 66 00:03:34,039 --> 00:03:36,639 two needs you and maybe not doesn't know it. 67 00:03:36,639 --> 00:03:39,719 Speaker 1: It's it's not only China sourcing. It's global sourcing, so 68 00:03:39,759 --> 00:03:41,639 we do. Of course China is still a strong market 69 00:03:41,639 --> 00:03:43,639 for it, but also the ones for example, if we 70 00:03:43,719 --> 00:03:45,639 do look into getting out of China, I mean we 71 00:03:45,680 --> 00:03:49,000 do global product sourcing. That's what we call signified global 72 00:03:49,000 --> 00:03:51,240 product sourcing. But what we usually bring to the table 73 00:03:51,360 --> 00:03:54,719 is that most of the companies who have either raw 74 00:03:54,759 --> 00:03:57,919 material to purchase or they're getting private label products done 75 00:03:58,120 --> 00:04:01,439 through third party manufacturers, they don't usually have the time 76 00:04:01,599 --> 00:04:05,560 and or the knowledge of finding about thirty potential producers, 77 00:04:05,840 --> 00:04:09,759 contacting them, getting quotations, comparing the quotations, and negotiating one 78 00:04:09,759 --> 00:04:13,719 against the other one. So it is something anybody could 79 00:04:13,759 --> 00:04:16,439 do on his or her own with a little bit 80 00:04:16,480 --> 00:04:18,680 of course of sourcing knowledge, negotiation power. 81 00:04:18,519 --> 00:04:18,920 Speaker 3: Et cetera. 82 00:04:19,600 --> 00:04:21,879 Speaker 1: But it's just simply really the time that most of 83 00:04:21,920 --> 00:04:25,720 the medium and large companies don't have to look into 84 00:04:25,800 --> 00:04:30,120 so many potential quotations or finding so many because in 85 00:04:30,199 --> 00:04:34,680 typical or in today's world is typical that purchasing staff, 86 00:04:34,759 --> 00:04:38,600 whether in large companies or us on small private label businesses, 87 00:04:38,920 --> 00:04:41,720 they may get three or four quotations typically to have 88 00:04:41,720 --> 00:04:45,199 a comparison and think we're at the right track. This 89 00:04:45,279 --> 00:04:47,800 is usually good for the beginning, but especially when you 90 00:04:47,839 --> 00:04:50,839 have products that sell well or you have issues. Of course, 91 00:04:50,879 --> 00:04:53,240 with finances, you can look whether your costs of a 92 00:04:53,439 --> 00:04:56,439 good sold are too expensive. And it's I think not 93 00:04:56,519 --> 00:04:59,040 a secret. I mean, the more quotations you get, the 94 00:04:59,040 --> 00:05:02,879 better leverage negotiation you have. Right, that's the unspoken or 95 00:05:02,920 --> 00:05:06,480 spoken truth of what brings success in saving money. 96 00:05:07,160 --> 00:05:11,120 Speaker 3: So when you're looking though, sometimes the price could be 97 00:05:11,160 --> 00:05:14,240 too cheap or too expensive, do you like usually throw 98 00:05:14,319 --> 00:05:16,680 up the cheapest and the highest? How do you do that? 99 00:05:16,920 --> 00:05:19,160 Speaker 1: I mean the target would be of course, if things 100 00:05:19,199 --> 00:05:21,639 go well, out of those thirty potential producers may work 101 00:05:21,639 --> 00:05:24,399 get five to eight quotations. Maybe if it goes well, 102 00:05:24,519 --> 00:05:26,360 or even better at ten to twelve. Maybe if it 103 00:05:26,399 --> 00:05:28,519 goes really well, if you're going into China and seartually there, 104 00:05:28,519 --> 00:05:31,879 maybe you get fifteen, twenty or twenty five. So of course, 105 00:05:31,920 --> 00:05:33,959 if you do see where the average usually lays, and 106 00:05:34,000 --> 00:05:36,560 you see one that really escapes and run the way 107 00:05:36,560 --> 00:05:39,279 with extremely low prices, you think is like, yeah, there 108 00:05:39,360 --> 00:05:42,800 must be something wrong. And then the most expensive and 109 00:05:42,879 --> 00:05:46,959 extreme ones that get out of the normal average, of 110 00:05:46,959 --> 00:05:49,160 course you would kick them out as well. But then 111 00:05:49,199 --> 00:05:51,480 you'll start looking at the ones which are reasonable. I mean, 112 00:05:51,480 --> 00:05:53,360 it may not hurt still to have a look at that, 113 00:05:53,480 --> 00:05:56,639 but like you rightly say, it may be if it's 114 00:05:56,680 --> 00:06:00,959 like extremely cheap or extremely expensive, there's something there's something 115 00:06:01,000 --> 00:06:02,639 that's different with that product. 116 00:06:02,839 --> 00:06:06,879 Speaker 3: Gotcha, I say, so, yeah, you really you got to 117 00:06:06,920 --> 00:06:09,879 do your due diligence on these potential suppliers, right. 118 00:06:10,519 --> 00:06:13,240 Speaker 1: Absolutely, yes, yeah, And I mean one of the other 119 00:06:13,399 --> 00:06:15,040 secrets maybe to do is also if you do this, 120 00:06:15,120 --> 00:06:18,360 of course on your own, kick out any trading companies 121 00:06:18,399 --> 00:06:20,560 if you can, if you're willing to take the effort 122 00:06:20,839 --> 00:06:23,040 of being responsible of course for your product on your own. 123 00:06:24,000 --> 00:06:26,839 If youse, say, companies they're moving big boxes, turning them 124 00:06:26,839 --> 00:06:29,000 into small boxes and ship them out and then ask 125 00:06:29,079 --> 00:06:32,279 for a FT twenty thirty forty fifty eighty percent margin, 126 00:06:32,879 --> 00:06:36,160 which or sometimes even more so, trading companies is like 127 00:06:36,240 --> 00:06:38,959 a red flag for us usually unless. 128 00:06:38,560 --> 00:06:40,240 Speaker 3: A client really wants to have them. 129 00:06:40,519 --> 00:06:42,879 Speaker 1: We don't need middlemen, not all the time. 130 00:06:43,360 --> 00:06:47,279 Speaker 3: Well, I always learned in college and management. You can 131 00:06:47,360 --> 00:06:49,839 get rid of a middleman, but you can't get rid 132 00:06:49,920 --> 00:06:50,160 of this. 133 00:06:50,199 --> 00:06:55,240 Speaker 1: Function, right, yes, but you can change the way how 134 00:06:55,279 --> 00:06:58,879 a middleman is being charge or how he charges. Like 135 00:06:58,959 --> 00:07:01,279 most of the middleman would call us as a middleman, 136 00:07:01,720 --> 00:07:03,560 you know, many times they would buy the product and 137 00:07:03,600 --> 00:07:05,839 resell it or get a contract for getting a percentage 138 00:07:05,879 --> 00:07:06,959 of the order volume. 139 00:07:07,519 --> 00:07:08,360 Speaker 3: And those are. 140 00:07:08,199 --> 00:07:09,959 Speaker 1: Unnecessary costs where you say, why. 141 00:07:09,879 --> 00:07:11,639 Speaker 3: Should for doing that work once? 142 00:07:12,000 --> 00:07:16,279 Speaker 1: You should always earn so many percent forever? Yeah, just 143 00:07:16,319 --> 00:07:18,560 finding a producer on the order volume. 144 00:07:18,959 --> 00:07:20,439 Speaker 3: That used to be the case. 145 00:07:20,560 --> 00:07:23,199 Speaker 1: But I think this is something where we're i would say, 146 00:07:23,199 --> 00:07:27,040 revolutionizing the market. And maybe some companies don't like us 147 00:07:27,040 --> 00:07:30,040 because of that. 148 00:07:28,879 --> 00:07:31,720 Speaker 3: Well that's their problem. Your duty is to your client 149 00:07:32,199 --> 00:07:34,399 to get them the best possible deals to help them 150 00:07:34,480 --> 00:07:38,680 maximize their their profits. Right, if you ever. 151 00:07:38,519 --> 00:07:40,600 Speaker 1: Look for a job, carry that was a very good summary. 152 00:07:41,680 --> 00:07:42,920 I don't think I could afford you. 153 00:07:42,920 --> 00:07:46,279 Speaker 3: Though, but yeah, hey, that's what I usually tell clients. 154 00:07:46,279 --> 00:07:48,399 I don't want to work with you can't afford me, 155 00:07:48,439 --> 00:07:50,319 and that makes them want to work with me more. 156 00:07:50,399 --> 00:07:57,399 But sorry for another day. But so, so, what are 157 00:07:57,399 --> 00:08:00,240 three things that any business could do right now to 158 00:08:00,240 --> 00:08:01,160 cut their costs? 159 00:08:03,240 --> 00:08:05,720 Speaker 1: Where let me ask, where's the audience for you? Mostly 160 00:08:05,759 --> 00:08:07,240 in the US, I would assume, right. 161 00:08:07,160 --> 00:08:10,439 Speaker 3: In the US, But we got Canadians and then Europe. 162 00:08:11,199 --> 00:08:14,399 You know, we got three percent of the audience in UK, 163 00:08:14,800 --> 00:08:17,560 Netherlands and Germany, so this. 164 00:08:17,639 --> 00:08:20,160 Speaker 1: Is really the majority, of course for the US and. 165 00:08:21,360 --> 00:08:27,040 Speaker 3: Cat Yeah, eighty five percent is here in North America. Yeah, so, 166 00:08:27,199 --> 00:08:27,920 I mean definitely. 167 00:08:27,959 --> 00:08:30,000 Speaker 1: One of the things I think that applies for anybody 168 00:08:30,240 --> 00:08:32,840 is to ask yourself, all right, do I really get 169 00:08:32,840 --> 00:08:35,159 the best prices? And I am very very often hear oh, 170 00:08:35,159 --> 00:08:37,159 we're working for such a long time. We're working for 171 00:08:37,200 --> 00:08:40,720 ten years, fifteen years with the same supplier. That's usually 172 00:08:40,759 --> 00:08:43,120 a sign that you don't have the best prices, because 173 00:08:43,159 --> 00:08:45,240 of course they also want to earn money, and something 174 00:08:45,279 --> 00:08:48,080 has changed in the market. There are probably more producers 175 00:08:48,080 --> 00:08:51,279 in there. And I mean we've saved our clients no 176 00:08:51,399 --> 00:08:53,679 more than have a billion with a bee like. 177 00:08:53,679 --> 00:08:59,200 Speaker 3: Bravo and long. That's a lot of money. Yeah, indeed. 178 00:08:59,840 --> 00:09:03,440 Speaker 1: And the second thing, especially when it comes to the US, 179 00:09:03,679 --> 00:09:06,600 I would look, I mean, China still is a great country. 180 00:09:06,679 --> 00:09:09,919 We've been in there, I mean politically wise that maybe 181 00:09:10,039 --> 00:09:11,840 you know, of course different reasons, but what I'm saying 182 00:09:11,840 --> 00:09:15,519 in terms of production and et cetera, it's still a 183 00:09:15,519 --> 00:09:19,519 great country. We're still doing about forty percent sourcing inside China, 184 00:09:19,559 --> 00:09:22,559 which is the largest by far for a single country. 185 00:09:23,320 --> 00:09:27,919 But I mean an economic economic war always has somewhat 186 00:09:27,960 --> 00:09:30,879 been going on between the US and China, but I 187 00:09:30,919 --> 00:09:34,840 mean since Trump back then in twenty eighteen implemented even 188 00:09:34,879 --> 00:09:37,840 more anti dumping tariffs against products from China, and the 189 00:09:37,919 --> 00:09:40,360 question really comes up as like, okay, can I get 190 00:09:40,360 --> 00:09:43,960 this product from a different country but China, because I 191 00:09:44,000 --> 00:09:45,879 think back then it was a two hundred and fifty 192 00:09:45,960 --> 00:09:48,720 or two hundred and eighty billion lawler market. Who cares 193 00:09:48,759 --> 00:09:49,559 about thirty billion? 194 00:09:49,639 --> 00:09:51,639 Speaker 3: Right that. 195 00:09:53,080 --> 00:09:55,600 Speaker 1: They had at least twenty five percent additional import tax. 196 00:09:56,159 --> 00:09:58,320 And please do not do not do to make the 197 00:09:58,360 --> 00:10:02,480 mistake and sheet and different tariff code cheat with a value. 198 00:10:02,600 --> 00:10:05,840 So just to get around the anti dumping tariffs because 199 00:10:05,840 --> 00:10:08,639 a country does not make any money, a country doesn't 200 00:10:08,679 --> 00:10:13,080 have any money, A country has taken taxes in the top. Yeah, 201 00:10:13,879 --> 00:10:16,360 and if they need money, and they'll check you out 202 00:10:16,360 --> 00:10:18,440 and they find some mistakes, believe me, they go deeper. 203 00:10:19,399 --> 00:10:22,440 We have a few companies, two of them are also 204 00:10:22,519 --> 00:10:26,360 product businesses, and I mean US Germans. I think we 205 00:10:26,440 --> 00:10:28,879 may be a little bit more afraid or more aware 206 00:10:29,000 --> 00:10:30,879 of that compared to what I see a lot of 207 00:10:30,919 --> 00:10:33,679 times in the US. But I've gone through customs checks 208 00:10:33,679 --> 00:10:37,120 and I'm super happy that they found like minor mistakes, 209 00:10:37,159 --> 00:10:39,159 but you know, the minor mistakes, and they started digging. 210 00:10:39,519 --> 00:10:41,320 They wanted to see the invo as a still bank 211 00:10:41,399 --> 00:10:45,240 transfers all of those things, and was like, if there 212 00:10:45,279 --> 00:10:47,600 was one small mistake, paid one thousand, five hundred extra, 213 00:10:47,679 --> 00:10:50,360 which wasn't really much, but the rest was correct. But 214 00:10:50,399 --> 00:10:53,000 if a country wants money, they will go for it. 215 00:10:53,639 --> 00:10:58,159 Speaker 3: And they got to pay you know, a few mispayments there, 216 00:10:59,200 --> 00:11:01,720 and they've already paid for your fee. Right, what do 217 00:11:01,759 --> 00:11:07,720 you mean a few misspayments, Yeah, a few misstaken payments, 218 00:11:08,240 --> 00:11:09,679 a few you know. 219 00:11:10,159 --> 00:11:13,960 Speaker 1: Right, I mean whenever we came on the right payments 220 00:11:14,039 --> 00:11:16,879 or just looking at the penalties, I mean, yes, you 221 00:11:16,960 --> 00:11:20,080 may very simply do it once. Right, it covers any 222 00:11:20,080 --> 00:11:22,720 of the cost that you would have. So one of 223 00:11:22,720 --> 00:11:24,679 the ones we said, like, you know, do you really 224 00:11:24,679 --> 00:11:26,679 have the best prices. The second time is like is 225 00:11:26,759 --> 00:11:29,720 China the right country or for the simple reason, a 226 00:11:29,759 --> 00:11:33,080 government does not tax a product. A government taxes a 227 00:11:33,120 --> 00:11:35,679 product from a specific country. So that's say I give 228 00:11:35,720 --> 00:11:38,519 you one example, one of our they do beauty accessories. 229 00:11:38,600 --> 00:11:40,840 Also German guys selling in the US, selling over their 230 00:11:40,879 --> 00:11:42,879 own web page. I think that year back then was 231 00:11:42,919 --> 00:11:45,440 like thirty million dollars. Was like, hats of guys, you 232 00:11:45,519 --> 00:11:49,039 really know how to do marketing. And we found the 233 00:11:49,080 --> 00:11:52,000 product actually even one dollar cheaper in Vietnam and zero 234 00:11:52,000 --> 00:11:54,559 percent import tariffs. And they saved eight hundred and ten 235 00:11:54,639 --> 00:11:58,919 thousand dollars alone on import terms the whole year with 236 00:11:58,960 --> 00:12:01,799 the products that we optimize. They say fourteen million dollars 237 00:12:01,840 --> 00:12:06,039 by finding a cheaper supplier and no import taxes from Vietnam. 238 00:12:06,639 --> 00:12:08,000 Speaker 3: And the certain thing I would. 239 00:12:07,759 --> 00:12:12,080 Speaker 1: Say is that you can do besides that, get more quotations, 240 00:12:12,440 --> 00:12:16,000 find more suppliers and ask around and or go in 241 00:12:16,159 --> 00:12:19,200 with your existing supplier and said, guys, we've been doing 242 00:12:19,200 --> 00:12:22,279 business for so long together. I do understand here and 243 00:12:22,279 --> 00:12:23,600 there on this and that. But you know what, we 244 00:12:23,679 --> 00:12:26,559 have a lot of other orders offers as well. If 245 00:12:26,600 --> 00:12:29,679 that is true, can we do something about the price? 246 00:12:30,200 --> 00:12:34,039 Really the simple thing of just asking, even on the 247 00:12:34,080 --> 00:12:38,080 next order, even if it's the same amount of units 248 00:12:38,120 --> 00:12:40,480 that you're ordering, our own team got for our own products. 249 00:12:40,480 --> 00:12:42,720 I think in that one day was like a three 250 00:12:43,039 --> 00:12:45,200 three order row. I think in the average fourteen point 251 00:12:45,279 --> 00:12:48,320 eight percent saved just by asking. We was like, wow, 252 00:12:48,480 --> 00:12:50,919 that's additional savings. 253 00:12:51,080 --> 00:12:53,759 Speaker 3: Well, we had a saying in law school, if you 254 00:12:53,840 --> 00:12:55,360 don't ask, you don't get. 255 00:12:56,240 --> 00:13:00,559 Speaker 1: Uh. Absolutely right, Yep, that's so true. 256 00:13:01,120 --> 00:13:02,120 Speaker 3: That's absolutely true. 257 00:13:02,200 --> 00:13:03,639 Speaker 1: I mean what you need to do is, you know, 258 00:13:03,679 --> 00:13:06,720 business a bit is stune in between people, and if 259 00:13:06,720 --> 00:13:08,559 people don't talk to one another. That's why you know, 260 00:13:08,639 --> 00:13:10,879 I'm not really afraid of AI is taking over all 261 00:13:10,919 --> 00:13:14,200 those negotiations. It will be people in the end still 262 00:13:14,480 --> 00:13:17,840 communicating one another and deciding whether I do want to 263 00:13:18,720 --> 00:13:21,399 take that business from you for the amount of money 264 00:13:21,480 --> 00:13:27,600 you're offering me or not. But true, yeah, And another 265 00:13:27,639 --> 00:13:29,720 good praise in general out there is you may have 266 00:13:29,759 --> 00:13:32,320 heard this, I carry you for sure have heard this 267 00:13:32,559 --> 00:13:35,200 that the real money is made in purchasing, not in sales, 268 00:13:35,399 --> 00:13:36,960 or not only in sales. 269 00:13:37,000 --> 00:13:39,159 Speaker 3: Well, you have to have the sales in order to 270 00:13:40,279 --> 00:13:42,759 do the purchasing, right, what you. 271 00:13:42,720 --> 00:13:46,480 Speaker 1: Can purchase before, of course everything and not sell. But yes, 272 00:13:46,519 --> 00:13:49,120 some makes you get the sales. But then you know, 273 00:13:49,159 --> 00:13:51,200 the cheaper you buy, the more money of course you made. 274 00:13:51,360 --> 00:13:53,840 But yes, if you want to make. 275 00:13:53,679 --> 00:14:00,200 Speaker 3: Again in the US, like when a contractor it's or 276 00:14:00,240 --> 00:14:03,919 a construction project, after they get the award, the first 277 00:14:03,919 --> 00:14:05,919 thing they do is go back and try to cut 278 00:14:05,960 --> 00:14:10,480 the costs and get the get the suppliers to lower 279 00:14:10,519 --> 00:14:14,039 their costs, right, to lower the bill, right. Yeah, So 280 00:14:14,080 --> 00:14:20,000 it makes a lot of sense, doesn't it. Absolutely? Yeah. So, 281 00:14:20,000 --> 00:14:23,200 so tell us some success stories things that you've been 282 00:14:23,240 --> 00:14:27,879 able to achieve for clients. You gave us one example, 283 00:14:28,200 --> 00:14:33,360 some overpayments you found and that led to them saving 284 00:14:34,279 --> 00:14:36,519 not all the money in the world, but hey, every 285 00:14:36,759 --> 00:14:41,200 it's a process, right, Every savings leads to more savings. 286 00:14:42,200 --> 00:14:44,480 Speaker 1: So I mean another success again is one of the 287 00:14:44,759 --> 00:14:48,919 beauty accessories products. It was again the first product was 288 00:14:48,919 --> 00:14:51,519 like five hundred thousand units ordered a year. One dollar 289 00:14:51,600 --> 00:14:54,679 sheep was half a million saved original purchase in Bible 290 00:14:54,720 --> 00:14:57,120 six dollars, so it was three millions, and those twenty 291 00:14:57,399 --> 00:14:59,720 percent out of three millions, eight hundred and ten thousand 292 00:14:59,799 --> 00:15:01,960 just save from product number one went in the other 293 00:15:02,000 --> 00:15:04,000 seven or eight products, and then it was the savings 294 00:15:04,000 --> 00:15:08,519 of fourteen million just by changing from China to Vietnam 295 00:15:08,639 --> 00:15:12,159 and or in general looking for a new supplier. Now 296 00:15:12,240 --> 00:15:17,720 another one that was a cosmetics brand, so creams and cosmetics. 297 00:15:17,960 --> 00:15:19,799 I think it was a business of around like twenty 298 00:15:19,879 --> 00:15:22,440 six million dollars. Also, heads off, he's built this in 299 00:15:22,600 --> 00:15:25,440 three years from scratch to twenty six million dollar in revenue. 300 00:15:25,440 --> 00:15:29,720 Speaker 3: That's pretty neat. And and in the first. 301 00:15:29,480 --> 00:15:31,960 Speaker 1: Eight months back then, my wife was still doing it alone. 302 00:15:32,039 --> 00:15:34,080 But she's saved in the first eight months one point 303 00:15:34,120 --> 00:15:36,960 four million dollars. And if he's had I think back 304 00:15:36,960 --> 00:15:38,759 then two and a half million dollar in profit or 305 00:15:38,759 --> 00:15:41,639 so an additional one point four million dollars, I think 306 00:15:41,639 --> 00:15:45,120 we're like forty the forty six percent or something on 307 00:15:45,200 --> 00:15:52,679 there like it as additional profit. That's amazing finding. 308 00:15:52,799 --> 00:15:53,080 Speaker 3: I mean. 309 00:15:53,080 --> 00:15:55,840 Speaker 1: Another thing is, of course, if let's go for some 310 00:15:55,879 --> 00:15:59,720 big electronics companies fortune five hundred, so I can't give 311 00:15:59,720 --> 00:16:03,639 an aime there about this specific product. But when they 312 00:16:03,679 --> 00:16:07,279 couldn't produce anymore during the chips crisis, why or because 313 00:16:07,320 --> 00:16:10,200 they are previous free suppliers, you know, they didn't have 314 00:16:10,240 --> 00:16:14,159 any stock of computer chips anymore and memory modules and 315 00:16:14,320 --> 00:16:16,720 why not? Well, because they also only looked into their 316 00:16:17,080 --> 00:16:22,159 into their own typical pre sourcing channels. And we said, guys, 317 00:16:22,480 --> 00:16:25,919 it doesn't you know, if you're looking always in the 318 00:16:25,960 --> 00:16:28,519 same spot and there is nothing, then there's a very 319 00:16:28,519 --> 00:16:30,919 good book like The Cheese Manager or the Device Manager. 320 00:16:30,919 --> 00:16:34,559 And I think if you start looking in the same thing, 321 00:16:34,759 --> 00:16:36,840 or when you lost your key and you're looking at 322 00:16:36,960 --> 00:16:39,720 night under the street light and the key's not there, 323 00:16:39,720 --> 00:16:41,759 you will not find it there. It may be somewhere 324 00:16:41,759 --> 00:16:44,039 in the dark. And we actually went in and then 325 00:16:44,279 --> 00:16:48,360 later found As weird as it sounds, but electronic chips 326 00:16:48,399 --> 00:16:53,279 in textile producers literally under the pillows because they knew 327 00:16:53,360 --> 00:16:55,480 something was going to happen. They knew the market is 328 00:16:55,519 --> 00:16:57,960 going to crash in terms of chips, so they bought 329 00:16:57,960 --> 00:17:00,600 empty the market stopped everything in and they're owned as a 330 00:17:00,639 --> 00:17:04,240 textile training company. They knew what's going to happen. I 331 00:17:04,319 --> 00:17:07,319 can charge ten, twenty fifty or sometimes one hundred times 332 00:17:07,359 --> 00:17:10,200 the price of some of the products one hundred percent 333 00:17:10,400 --> 00:17:15,920 up front payment with no invoice. And believe me, how 334 00:17:16,920 --> 00:17:21,160 how what's the English word? How the big clients were 335 00:17:21,160 --> 00:17:24,079 really like needing it? How they are desperate? 336 00:17:24,839 --> 00:17:27,480 Speaker 3: Yeah, they didn't even you know, that's the problem. They 337 00:17:27,480 --> 00:17:32,519 don't necessarily know they need it until until you do 338 00:17:32,599 --> 00:17:34,680 it right. Until they find you and you show them 339 00:17:34,720 --> 00:17:35,960 the way yeaeah. 340 00:17:36,519 --> 00:17:39,000 Speaker 1: And I mean many of them could still not buy it, 341 00:17:39,039 --> 00:17:41,240 because I mean, obviously those are not ways that could 342 00:17:41,279 --> 00:17:44,039 be according to their compliance. But some other electronic companies, 343 00:17:44,119 --> 00:17:46,680 of course without setting the details, but they went in 344 00:17:46,839 --> 00:17:49,720 bought chips because they knew, all right, it doesn't matter, 345 00:17:49,759 --> 00:17:51,640 we need to buy them, and then they could produce 346 00:17:51,720 --> 00:17:57,440 in two digit millions. Again, finally, while somewhat outperforming legal 347 00:17:57,559 --> 00:18:02,680 or not so legal legally their competitors. And there's tons 348 00:18:02,680 --> 00:18:07,000 of finding alternative producers, finding getting your products near shoring, 349 00:18:07,079 --> 00:18:11,480 get it the production closer to your home, so maybe 350 00:18:11,480 --> 00:18:14,160 you're even in the same economic region. You can get 351 00:18:14,480 --> 00:18:17,039 much much better payment terms. Let's say, well, for example, 352 00:18:17,039 --> 00:18:20,279 like ninety days net or whatever, three percent discount on 353 00:18:20,319 --> 00:18:24,920 thirty days payment. After receiving the goods, you may by 354 00:18:25,079 --> 00:18:28,000 switching over your supply chain ors the tours near shoring 355 00:18:28,960 --> 00:18:32,279 or the smaller batches. But more frequently you have less 356 00:18:32,319 --> 00:18:35,079 bound at all, and with the late payments you may 357 00:18:35,079 --> 00:18:38,640 build up a positive cash flow. On the other hand, 358 00:18:38,720 --> 00:18:41,599 you don't have like seven eight nine weeks sea time, no, 359 00:18:41,720 --> 00:18:43,400 because you throw it on the truck and it's going 360 00:18:43,440 --> 00:18:46,039 to be there in three days, and all of those 361 00:18:46,039 --> 00:18:48,880 things may of course, I mean there's there's there's tons 362 00:18:48,920 --> 00:18:50,799 of stories that either share. 363 00:18:51,599 --> 00:18:53,640 Speaker 3: I just say, I'm sure you got a lot of them, 364 00:18:53,720 --> 00:19:00,240 like we all do, right, Yeah. So hey, So when 365 00:19:00,920 --> 00:19:03,559 when you're approaching what a quiet you agree to do 366 00:19:03,640 --> 00:19:05,839 business with them, what's the first thing you do with them? 367 00:19:06,319 --> 00:19:08,880 Speaker 1: I mean usually, of course, when it comes to really 368 00:19:08,920 --> 00:19:12,119 getting started with the sourcing, it is of understanding the product. 369 00:19:13,079 --> 00:19:14,559 It's not like, you know, they come to me, it's 370 00:19:14,559 --> 00:19:17,039 like where's the best market? That's usually what they say 371 00:19:17,079 --> 00:19:19,599 is like, so where do I best buy products? I'm 372 00:19:19,960 --> 00:19:23,839 saying that I need to understand the product because you know, 373 00:19:23,920 --> 00:19:27,839 getting freshly squeezed orange juice from Alaska is maybe not 374 00:19:27,920 --> 00:19:28,680 the best choice. 375 00:19:29,319 --> 00:19:32,160 Speaker 3: Yeah, it's not a good idea, and. 376 00:19:32,359 --> 00:19:36,039 Speaker 1: Getting bamboo out of Europe is maybe also not the 377 00:19:36,039 --> 00:19:38,240 best ideas. So we would be looking at the product 378 00:19:38,279 --> 00:19:41,240 of the way, how it's being made, what are the 379 00:19:41,240 --> 00:19:44,799 main components, And when we, for example, say can I 380 00:19:44,799 --> 00:19:45,720 give this as an example? 381 00:19:46,559 --> 00:19:49,200 Speaker 3: Sure, I'm thinking right now if I should or not. 382 00:19:49,440 --> 00:19:52,720 Speaker 1: Let's say, let's it's just some kind of basket out 383 00:19:52,759 --> 00:19:59,920 of felt material and some bamboo holdings or frames around it. 384 00:20:00,079 --> 00:20:01,759 So the question is like whether it makes sense to, 385 00:20:01,799 --> 00:20:04,039 you know, get it from Europe because Europe doesn't really 386 00:20:04,079 --> 00:20:06,920 have bamboo. Should it be a bamboo producer on the 387 00:20:06,960 --> 00:20:09,960 other in Asia who doesn't really know about textile, or 388 00:20:10,000 --> 00:20:12,880 should it be on the other hand, a textile producer 389 00:20:13,039 --> 00:20:16,160 somewhere in the Asian region, depending on which country of course, 390 00:20:16,240 --> 00:20:20,200 looking of course into the import tariffs or looking into 391 00:20:20,240 --> 00:20:25,759 the customs duties and saying whether a textile company who 392 00:20:25,839 --> 00:20:30,000 would purchase bamboo frames from somewhere else would be the 393 00:20:30,079 --> 00:20:33,160 right choice to look into. So without understanding the product, 394 00:20:33,160 --> 00:20:35,960 you can't really understand where the product. 395 00:20:35,680 --> 00:20:37,160 Speaker 3: Should come from, gotcha. 396 00:20:37,359 --> 00:20:39,519 Speaker 1: I mean, with the focus of making it the most 397 00:20:39,559 --> 00:20:42,400 affordable you can. Belias this hears in Germany, but it 398 00:20:42,440 --> 00:20:43,839 will be probably like ten times surprise. 399 00:20:45,160 --> 00:20:47,240 Speaker 3: Hey, it makes a lot of sense. Sometimes you got 400 00:20:47,279 --> 00:20:49,200 to pay the price to get the quality you want. 401 00:20:49,680 --> 00:20:53,240 Other times you know, it just makes it. Well, Hey, 402 00:20:53,279 --> 00:20:55,839 appreciate you coming on, Sebastian. Just tell us how do 403 00:20:55,880 --> 00:20:57,880 we connect with you on the web. Where do we 404 00:20:57,960 --> 00:21:00,279 find you? How do you work with the people? 405 00:21:01,119 --> 00:21:03,960 Speaker 1: Jerry, thanks a lot, I mean for this real great offer. 406 00:21:04,480 --> 00:21:07,200 It's it's nice to be here. I mean quite simple. 407 00:21:07,240 --> 00:21:09,759 Go to signify dot net z in the beginning of 408 00:21:09,920 --> 00:21:12,240 Y and the end so z I g N I 409 00:21:12,640 --> 00:21:16,119 F Y dot net and there's just a booking calendar. 410 00:21:16,200 --> 00:21:18,440 Just book a call, doesn't cost anything. We'll have a 411 00:21:18,599 --> 00:21:21,440 chat and we'll hop on a call and see and 412 00:21:21,480 --> 00:21:25,079 explore of these possibilities to find additional producers and better 413 00:21:25,160 --> 00:21:28,480 prices for your products and or if it's possible, of course, 414 00:21:28,519 --> 00:21:31,319 to reduce to purchasing cost. And I think that's already 415 00:21:31,440 --> 00:21:35,240 very very EASi is signify dot net and just book 416 00:21:35,240 --> 00:21:35,599 a call. 417 00:21:36,160 --> 00:21:38,880 Speaker 3: All right, Hey, appreciate you coming on. And if you've 418 00:21:38,880 --> 00:21:42,119 got a question for Sebastian or myself, shoot me an email, okay. 419 00:21:42,319 --> 00:21:44,880 L At Carrie Let's dot com you'll find a link 420 00:21:45,119 --> 00:21:47,519 to Sebastian's site and the show out to this interview 421 00:21:47,599 --> 00:21:51,000 on Financial Survival Network dot com. While you're there, please 422 00:21:51,039 --> 00:21:53,119 sign up for free newsletter. You get a lot of 423 00:21:53,160 --> 00:21:56,759 great info like what Sebastian's sharing with you here and 424 00:21:56,880 --> 00:21:59,759 Sebastian will definitely talk to you again. Appreciate you coming on. 425 00:22:00,039 --> 00:22:02,079 Speaker 1: Thank you so much for my slight Thanks for. 426 00:22:02,079 --> 00:22:06,720 Speaker 2: Listening to Carrie Letz's Financial Survival Network your solution to 427 00:22:06,720 --> 00:22:11,559 today's trying times. For the latest, go to Financial Survivalnetwork 428 00:22:11,599 --> 00:22:16,039 dot com. Financial Survival Network now more than ever