Buying glass bottles and jars directly from manufacturers in China seems like the obvious choice for distilleries looking to cut costs. After all, removing the middleman should lead to the lowest price, right?

Not so fast. Sourcing glass bottles directly from Chinese factories can actually end up costing you more without the right guidance. In this article, we’ll break down when it makes sense to go direct versus using an expert glass bottle sourcing agent like BottleSales.

The Direct from Factory Price Myth

Many distilleries believe that buying glass bottles directly from manufacturers in China will provide the rock-bottom pricing. There is some truth to this - removing a middleman does eliminate a layer of cost.

However, what distilleries don’t realize is the “direct pricing” they receive often includes huge markups by the salespeople at the glass factories.

See, glass plants in China are accustomed to working through agents. When a distillery reaches out looking for direct pricing, the factory salespeople see an opportunity to inflate margins. They know the distillery has no point of reference to judge whether the “direct” quote is truly reflective of base production costs.

The reality is the pricing and minimum order quantities (MOQs) salespeople at the glass factories provide directly to distilleries represents their best margin scenario. There is usually a 20-30% markup versus what an expert agent like BottleSales could negotiate.

Why Glass Factories Mark Up Direct Pricing

You might be wondering why glass plants would mark up their prices when selling directly to distilleries. Wouldn’t they want to offer their lowest costs without a middleman?

It comes down to incentives and risk.

First, factory sales teams earn higher commissions when they make direct sales versus going through established agents. By inflating the pricing to distilleries, the salesperson pockets more money.

Second, fulfilling small orders is risky for glass factories. Producing custom bottles in low volumes leads to more defective products and production inefficiencies. When a glass plant works with an agent like BottleSales that places large bulk orders, these risks decrease dramatically.

As a result, factories pad the pricing to make small distillery orders worthwhile. This leads to direct costs being higher versus going through a sourcing agent.

When Direct Ordering Does Makes Sense

Given these markups, when does it then make sense for distilleries to order directly versus using a sourcing agent?

In general, the only case where direct ordering is advantageous is when the distillery plans to order very large quantities - usually full container loads of 500,000+ units. At this bulk level, factories are more incentivized to offer better pricing that maximizes production efficiency.

The problem is most small to midsize distilleries cannot feasibly order half a million or a million glass bottles at once. This makes direct ordering impractical.

Partnering with BottleSales for the Best Pricing

This is where partnering with BottleSales provides a win-win for distilleries. Our longstanding relationships and high sales volumes give us significant leverage to secure the lowest costs at a wide range of Chinese glass factories.

The prices we negotiate are often 20-30% below what distilleries are quoted when reaching out for direct pricing. This saves tens of thousands in glass bottle procurement costs.

Additionally, by aggregating orders across our entire client base, BottleSales can activate far lower MOQs than individual distilleries would be given. We open up access to the most competitive rates at quantities under 10,000 units.

Our sourcing experts also handle all aspects of quality control, transportation logistics and import regulations. This removes significant burdens from distillery teams.

Ready to Get Your Lowest Quote?

Hopefully this breakdown gives you a clearer picture of the competing incentives involved with glass bottle sourcing. Instead of falling for misleading “direct” pricing, partnering with BottleSales leverages our economies of scale to remove markups and get your lowest cost.

If you’re ready to get a competitive quote tailored for your next glass packaging order, please reach out. Our team of experts makes the sourcing process quick and hassle-free.

You’ll get the real factory pricing you deserve, hassle-free logistics, and the peace of mind that comes with working with a trusted American company. Let’s chat about how BottleSales can save you thousands on your upcoming glass bottle order today!

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