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China Business » Business Tips » Who Pays for a Product Sample?

Who Pays for a Product Sample?

It is possible to consider this question from two points of view, that of the supplier and that of the prospective buyer. Obviously, their ideas differ.

Samples are single products sent from a supplier to a prospective buyer to show the type of quality of work that a supplier can produce. This should remove most of the risk from the buyer concerning hiring the supplier to produce his goods.

A supplier views the sending of a sample as an enticement to the buyer to sign a contract with the supplier. The seller, who is the supplier, must pay out of his own pocket to send samples with no guarantee that the buyer will actually buy. He takes a chance that he is actually sending the sample to a buyer rather than to a price-checker or a competitor in his business.

Some prospective buyers feel that the supplier should pay the cost of the sample plus the shipping as an incentive to get the order. Other buyers feel that the sample should be free, but the shipping cost should be born by the buyer. Others consider the value or the cost of producing the sample. If it is rather expensive, the buyer should pay the cost entirely, but if it is rather inexpensive the seller should pay it.

A supplier may contend that the buyer asked for a sample and thus, he should be ready to pay for it. Very many samples at the supplier's expense can come to a rather large total expense in a short time.

A couple of less one-sided ideas have been presented. One is to have the sample marked as "SAMPLE OF NO COMMERCIAL VALUE". In some countries, this type of sample is not taxable so no duty would be involved.

Another idea is for the supplier to send the sample at the buyer's expense. He also includes a coupon with the sample for a discount if the buyer actually buys.

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