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The deposit/prepayment of makeup brush order

Published Time:Monday on May 17 2021 11:42:23 Source:未知 Read:

All makeup brush manufacturers will require deposit for makeup brush orders. Only after getting deposit, we can order material and start production. It is a regulation in makeup brush industry.  If customers do not agree to pay deposit, we have to give up the orders.

Some customers cannot understand such regulation, from their side, it is unfair to pay without receiving products. They believe their official order is enough for the makeup brush manufacturers to arrange brush production. But for manufacturers, we have met some customers who have placed orders but finally cancel the orders; we have ordered & paid the raw material, and the production is almost finished, but the order is cancelled, we have to afford all cost and loss by ourselves… If such issue happens twice a year, we have to close down the factory.

As for the deposit percentage, some makeup brush manufacturers require 30%, some may require 50% or more. 30% is the least, if less than 30%, the deposit will be somewhat meaningless. For normal makeup brush sets, we can agree with 30%-50% deposit, as even if customers unfortunately cancel the order, the material can be used for other orders; but for single brushes with large order quantity, we will require at least 50% deposit, as if unfortunately the customers cancel the order, the material will become useless. One of our competitors once met a customer who ordered a single brush with huge quantity, and they also have arranged 30% deposit, but when the production is almost finished, they cancelled the order and declared that they no longer needed the brushes or deposit. But the fact is they immediately asked their Chinese agent to recycle the brushes from the manufacturer with extremely low price. Since the brushes have become useless for the manufacturer, they have to sell the brush to the agent even at great loss. Therefore, the customer finally gets the same brush with much lower price even if they give up the deposit. With such lesson, the makeup brush manufacturers get know that the order of single brushes has more risks.

As a makeup brush factory, we always hope to win order as many as we can, but the premise is that the orders will not cause too much risks. Deposit is a way to control our risks.