Saurabh Gupta | 30 Apr, 2008
In the world of export-import it is not easy to place an order with a supplier without doing a quality check of the its product. But on the flip side sending samples involves additional costs due to shipping or transportation, which ultimately increases production cost of products manufactured by the manufacturer/ supplier.  

Many a time, buyers after receiving the samples stop communicating with the supplier because the products didn't meet his expectations. There are several instances where the prospective buyer turns out to be a fraud. In both cases sellers stand out to lose tremendously.

So the vital questions are: 'What does the seller do if  the buyer asks for samples?, Do buyers pay for the samples?'

"It has to be seen what type of buyer it is. If the buyer is your regular buyer and wants some new developments then there is no hitch in sending the samples as he may place new orders. We have been doing so and sending free samples and also getting orders," says Delhi-based Sunil Mahajan, Proprietor, Transworld Trading Inc. in a recent discussion in Tradeindia's discussion forum.

"But if the buyer is from some African countries like Benin, Togo, etc. than the supplier must be careful," he added.

"We have seen in many cases, that the buyer tries to get samples free of cost, but if samples are offered free of cost, around 80% of importers will not, actually, place the order and they will just sell the free samples. The best way to offer the sample for free is to offer reimbursement at the time of placing the actual order. So that the importer and exporter both will be benefited," says Ahmedabad-based Jatin N. Trivedi, Manager, Namrata Solutions.

However from the buyers point of view too, there is a valid point to ask for samples before placing an order. Buyers and importers argue that each company sets aside a sum of money to promote their business. Exporters or suppliers should also set a mark of free samples to be send each year, buyers say.

"We do ask for the free samples as a record to be maintained if any supply is negotiated in future. Many a time it happens that we get excellent samples and while the actual quality is taken at the export point, we find the stuff hopeless. At this time the recorded sample provided to us becomes
the base of cross-check. It is obvious that freight and other charges are incurred," said Dainesh T. Sampat, Director, Reliance Marketing & Services, from Ruwi in Oman.

"While dealing with parties for local supplies, we have to submit samples, in most of the cases they never come back. From the entire lot we keep aside some pieces for samples only. Their cost is included in the inventory costing," said Sampat added.

Industry experts opine that while sending free samples have almost become a norm, exporters can take a couple of steps that will ensure that they are not taken for a ride by unscrupulous buyers.

They can either ask the buyer to bear the shipping costs or adjust the costs when the buyer places the order. However it is not an indication that the buyer is a fraud if he disagrees on paying for the samples or for the shipping of the samples. A very effective measure which suppliers have taken now is that they mutilate free samples in such a way that they are unfit to be sold. Moreover doing business with buyers or importers registered with reputed B2B portals can lessen the chances of getting duped, experts add.