Filipino’s are extremely creative and often come up with some wonderful ideas with renewable resources such as bamboo. But even so there is something that often lets doing trade with the Philippines down.
First one is pricing structure as we all know China is difficult to compete with but often I get quotes for pricing based on U.S. dollars. Why this doesn’t work is they have gotten a price off the internet somewhere then quoted somewhere near. Problem is that price was sat in a Western country!
Where is the shipping costs? Taxes and other costs in getting it from A to B? Because a lot of the ventures I see are killed off from day one because of crazy pricing. But its very common to see this when doing business in the Philippines especially if going for larger quantities you will find people trying to put the price up rather than bring it down.
Now I don’t understand if people know this actually works the opposite way to most other countries. Where if your customer increases demand your supposed to reduce your costs or at least stay the same as a minimum. Not actually try to increase costs because your having to do more work to produce larger quantities of goods.
This isn’t a jab at the Philippines but simply for people to do business you have to be willing to “do business” in a logical manner for international trade. In the same way customs and other parts of the government trail of interference has to play their part in reducing corruption.
The Philippines has plenty to offer the world but I hear often how people are frustrated in the small business sector with things such as mail pricing. Yet why isn’t the government doing more to support them? Every part of the economy boosts a country yet some parts are hindered by corruption or laziness involved in government sectors.
I for one would like to see the mailing system updated, but also to a level its productive for small businesses to use. Why is it I can order something from China and it can be in the UK within 2 days yet from the Philippines its 2 weeks? Surely a deal could be struck with getting stuff via Hong Kong and out?
But for me its not too much of a frustration as beating the system we have gone technical instead of physical objects. Web design, graphic design, telesales,telemarketing the industries that don’t rely on state but on the individuals to get things moving.