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gw_kari
Feb 26, 2007, 10:47 AM
Post #1 of 8
(11422 views)
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10 Rules for Protecting Yourself From Fakes
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Hello all, and welcome to the new Wholesale4um!
I'd like to start this board off with 10 rules to follow to protect yourself from fake merchandise - this is definitely a subject that many of you will be interested in. This is excerpted from the article "How to Protect Yourself From Fakes! 10 Golden Rules", by James McHugo of Luxury Magazzino (read the full article by clicking here). ~Admin
Rule 1 Use your common sense! If a deal is too good to be true, you can be sure that it is not true. For instance, Louis VuittonTM does not have sales, burns all its surplus, so basically if someone is selling new Louis VuittonTM merchandise, it is fake and that probably means everything else they are selling is fake too! PradaTM handbags do not sell for $50, period. Got it?
Rule 2 Know your brands. If you are selling a brand, please do your due diligence on a brand research it before you sell it. This is easy to do and will save you a lot of problems later. For instance, authentic ChanelTM sunglasses are very, very hard to purchase in the excess market, over 90% of them are fake. This is easy to learn. ChanelTM is a brand that is licensed to LuxotticaTM, the largest manufacturer of designer sunglasses in the world. And they also own Sunglass HutTM retail stores. So they do not need to sell their surplus sunglasses, they keep them in-house and thus, it is very hard to get them. This is different from GucciTM and Christian DiorTM sunglasses. These are made under license to SafiloTM. SafiloTM does not have its own retail distribution, so it out sources its surplus inventory and, thus, it is easier to find them in the surplus market (which does not mean that all GucciTM's are real, of course!).
Rule 3 Quality Control. This is the rule that most people do apply but it is a lot harder than people realize to spot a fake. Sometimes, there are just cheap knock offs, and these are easy to spot. However, many fakes are actually exactly the same as the real thing. More on that in next article. So, when inspecting merchandise, do you know what to look for? The best way is to go and buy one of the real ones from an authorized store (you can always return it later). If you cannot do this, then check two samples side by side. Count the stitches the stitch count should always be the same. Check the labels the content, font, positioning. Smell the merchandise, silly as it may sound. Measure it. And know your brands every brand adopts certain anti-counterfeiting measures, try to search online and find out what these are. And, finally, if you are investing a lot of money, there are specialist laboratories that will do a full spectrum of tests for you. Oh, and one thing pay for a sample if you have to better to lose a little than a lot!
Rule 4 Pricing. The price that you are being asked to pay for a piece of merchandise tells you a lot about the merchandise. Much of this is the application of Rule 1 common sense. For instance, if you search on ebay, you will see a lot of listings for black PradaTM micro fiber MV515 handbags. They retail for $236. They are on ebayTM for as little as $50. Most importantly, they retail for 136 Euros in Italy. So do the math: These bags are part of every season's collection, with minor modifications each season, so they are never heavily discounted. Best price you will pay in Italy is 50% of retail, plus you can get your Value Added Tax back upon export (20% in Italy). So that is 56.66 Euros. The current exchange rate is $1.30 to 1.00 Euro. So that is $73.66. Then you have to import them (shipping costs, say 5%) and pay US Customs duties, which are 19% for synthetic material handbags. Now the landed cost is $92. And the seller has to make a profit for their efforts. So, basically, unless it is fake, are you really going to find an authentic MV515 handbag for less than $110? No and apply the same pricing analysis to all your purchases. Understand and be familiar with the normal surplus price for different product categories that you specialize in.
Rule 5 Know who you are buying from. You have to know who you are buying from. The best is to always visit their warehouse/showroom and get to know them. If you cannot do this, then it is essential to only deal with vendors that:
i) Have a US domiciled business (are a legally incorporated company within your jurisdiction whether it be the US or any other Country) such as a Corporation or an LLC.
ii) Have a US address, together with contact details phone, fax, email address (non-free), website, etc. The more the better.
iii) Have a trusted and good reputation within your merchandise category. Check them out, or verify third party references.
You really want to avoid purchasing trademarked / branded goods altogether from vendors that do not meet these strict criteria unless you are buying the goods yourself overseas. You have absolutely no recourse if you have any problems. You are just exposing yourself to be extorted. If a trademark owner comes after you, how are you going to catch up with your supplier? You do not know where they live, how to find them. Are you really going to sue a supplier through the Italian Law courts? No, did not think so.
Rule 6 Chain of Title. Everyone always asked for the so-called "Sanitized Invoice". Frankly, these are generally not worth the paper that they are written on unless they form part of the "chain of title". The chain of title is the trail of invoices from the original trademark owner, or authorized third party seller, to you, the buyer. This is what a trademark owner is going to look for when they come after you that you form a link in the appropriate chain of title, and that you have the paperwork to back that up. A sanitized invoice on its own does not give you this at all. In fact, you can go online, or to a street corner in Italy, and buy lots of "sanitized invoices" they are all useless. You need to be in the chain of title. What this means is that, having adhered to Rule 6 above, you get an invoice from your supplier. That invoice must specify exactly what you purchased including the brand name written out in full, and the style number of the items that you purchased. In addition, the invoice must specify that the goods that you are purchasing are guaranteed to be authentic. This invoice is much more valuable to you and will protect you far more than a sanitized invoice. Of course, if you are buying a large volume of merchandise, you should also ask to inspect or receive copies of the suppliers own invoices with its suppliers. Many suppliers are reluctant to provide these as the do not want to divulge their sources, and this is understandable. Furthermore, you can then reuse these invoices time and again outside of the control of your supplier to protect your own sale of counterfeit merchandise (a practice known as "mixing"). Accordingly, many genuine suppliers are very wary to provide original supplier invoices. And, as long as you have fully applied Rule 6 above, and have the invoice in hand as specified here in Rule 6, you are generally going to be OK.
Rule 7 Know the US Customs & Import Laws. You must research and understand the US Parallel Import laws. It is completely within your rights to import authentic merchandise from non-US domiciled brands and re-sell them, within certain limitations. However, it is not permitted to import US domiciled brands, such as Ralph LaurenTM and Tommy HilfigerTM, into the US without the permission of the respective brands. So know the rules up front and avoid obvious mistakes and pitfalls.
Rule 8 Start Small and Insist on Returns. When you are starting out with a new supplier, always start small. Do not be bullied into a large order. That in itself is a red flag. Furthermore, insist on your ability to return the merchandise if you are not happy with it. After all, this is your right. Again, another red flag if the supplier does not accept returns.
Rule 9 Pay with a credit card. Credit card payments protect you, they are always better than cash or bank wire transfers, until you get to know a supplier and your orders grow in size. If you use a credit card for payment, keep records, and you can always file a chargeback.
Rule 10 Use your Common Sense! Yes, that again. And again.
If you apply these 10 simple rules, you are not going to avoid every scam, but you are going to avoid 95% of them, and while you are at it, you are also protecting yourself from any legal liability. Good luck out there!
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shwaunee
May 7, 2007, 10:02 PM
Post #2 of 8
(10089 views)
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A lot of what you were saying was true, but the one thing that you were wrong about was that Safilo DOES own a retail store..it is called Solstice. They are located in mall settings, and are expanding very rapidly.
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danny cena
Aug 23, 2007, 3:21 AM
Post #3 of 8
(5456 views)
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It's so kind of you!
These are very useful suggestions to me as a wholesaler.
I still think honesty is the foremost thinger to businessman.
lol,Thy!
BTW,I want to introduce myself
----www.sourcingmap.com to everyone!
SourcingMap offers online purchase of the latest products, at wholesale prices and in small quantities, directly from factories in China. Member factories specialize in MP3 and MP4 players, Digital Cameras, Cell Phone Accessories, Computer Accessories, Costume Jewelry, Radio Control Toys, and various electronics and gadgets.
SourcingMap started as a wholesale clearance center for factories in China. Operation is based in a 330 thousand sqft warehouse in Shenzhen, China and in a 10 thousand sqft office in Hong Kong. The team consists of product engineers, production managers, customer service professionals and IT geeks.
The SourcingMap mission is to offer worldwide wholesale customers the best factory-direct deals out of China. This includes lowest prices, great quality, reliable shipping and communication.looking forward to your visit!And we'll do our best to serve for you!
___________________________________________________
The China Factory-Direct Wholesale Superstore
url: www.soucingmap.com
email: info@sourcingmap.com
___________________________________________________
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litb
Jan 23, 2008, 12:54 AM
Post #6 of 8
(2176 views)
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Hi,
Very useful. it fits the reality. And to be a wholesaler, we feel more responsible for every deals and satisfying our customers. Good luck everybody!
http://www.lightinthebox.com/?litb=10023
We Are Dedicating to Providing the Excellent Service for Worldwide Customers!
Lightinthebox.com, Now You Are Buying Smarter!
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loving crystal
Jan 26, 2008, 12:51 PM
Post #7 of 8
(2095 views)
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Can these apply to all the potential fakes, I am doubt about it!
But, I will try to apply them into practice to test its truthfulness.
Thanks for sharing!
Welcome to www.china-seller.com for your desired shoes and handbags!
Enjoy yourself at www.nyrose.cn for beautiful roses!
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airfreshener
Apr 29, 2008, 6:10 AM
Post #8 of 8
(273 views)
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This is the best advice to me!
These are very useful suggestions to me as a wholesaler. especially as a china exporter with wholesale car air fresheners.
I still think honesty is the foremost thinger to businessman.
Printed company logos and design on the car air fresheners in order to promot your company's development !
(This post was edited by gw_rebecca on May 8, 2008, 5:24 PM)
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