|
|
We’re just about to close the office for Galungan.
This is a major local holiday here in Bali and we’ll be off for three days (Tuesday through Thursday) but while we’re away, you might enjoy the latest batch of updates.
We’ve just uploaded over 470 products in five different categories — here’s everything you need to know:
Painted Bali Metal Products (The Christmas Edition) — all new.
Bamboo Products (Update) — latest models on the first two pages; codes BB-070 and up.
Javanese Style Wooden Decor — latest models on the first three pages; codes POA-305 and up.
Tiki Figures — latest models on the first page; codes TIKI-280 and up.
Retail Display — latest models on the first four pages; codes JWH-040 and up.
Happy Galungan,
Sean
Wholesale Stock from Bali Now Online
Our 2009 stock catalogue is now up and running.
These represent all the products we have left from our productions over 2009. As you probably already know, it’s about this time of the year that we pretty much declare the year over in terms of production and get to work on our Spring Cleaning.
Some notes before you check the links below…
Wholesale Prices are on the presentation but in order to see the correct pricing, you need to make an account and log in.
You can start that process by going here:
http://www.indonesiaexport.co.uk/iex-stock/my-account.php
After you’ve made the account, we’ll have to manually switch your account so that you have full price access… that sounds complicated but, basically what it means is that after you’ve made an account on the Wholesale Presentation, we’ll go in there and switch you to “wholesale”.
After that, every time you log in, you’ll always be able to see the correct prices.
Stock prices now include packing material and boxes.
Prices do not include shipping or any other freight-related charge. Once you’ve made your order, we’ll estimate the total volume / weight, advise you of your shipping options and get you an up to date quote.
Now, you can access the presentation by going to:
http://www.indonesiaexport.co.uk/iex-stock/
Or clicking this image:
 Wholesale Bali Stock from Indonesia Export
If you’re unsure on anything or run into any kind of problem with the presentation, drop us an email at info@indonesiaexport.co.uk and we’ll get right back to you with an answer.
Don’t forget to let us know what you think.
Sean
Who am I?
I was born in London in 1970 to an Irish family
I am Married.
I think I’m officially middle aged. Thinner on top? Check. Thicker in the middle? Check.
Take a look at my wife’s site here: www.katakoe.com and my daughter’s site here: www.sophiehynes.com.
I like dogs, chocolate & reading.
Above all, chocolate… probably explains the thicker in the middle part.
I am the owner / director of Indonesia Export. We’re a fully registered company based in Bali, Indonesia and, more recently, also a limited company based in Middlesex, UK.
We’ve been online, wholesaling products from Bali, Lombok & Java (and across Indonesia) since 1995.
I live in Bali.
Indonesia Export has made up almost all of my adult, professional life.
I’ve spent the last 13 (nearly 14) years sourcing and cataloguing over 13,000 products from over 200 original furniture makers, jewellery smiths, carvers, crafters, painters, potters, clothing makers and metal workers on Bali, Java & Lombok.
What do I do every day?
Identifying new suppliers and product lines.
Meeting manufacturers to establish quality assurance and quality control methods.
Factory and workshop inspections.
Sampling, product fault-finding and re-design.
Identifying and overcoming potential packing, shipping & logistic issues.
Assessing product viability in relation to customers, competitors and existing product lines.
Researching & assessing product marketability to existing and new customers.
Researching, assessing and negotiating the best combination of price, quality and lead time.
Identifying and making contact with potential new customers.
Presenting and pitching products and services to new & existing customers.
Negotiating and closing deals in person, by phone and by email.
Creating and managing Print, SEO and PPC advertising campaigns.
Development of new product lines and customization of existing products including style, durability, volume, weight, target cost, regulatory restrictions, sales relevance, seasonal sales and lead time.
Managing 25 permanent Indonesian staff in sales, administration & logistics under a strict budget.
Setting targets & incentives in sales & logistics.
Developing standards & policies to increase efficiency and productivity.
Creating and overseeing training and education in language, IT, sales & customer relations.
Setting human resource social policies, ensuring & exceeding compliance with government standards.
I don’t…
Go to the beach very often.
Relax
I am good at….
Bahasa Indonesia (Indonesian Language)
PHP, MySql & Building websites.
Microsoft Office, FileMaker, Dreamweaver, Photoshop and a few other programmes.
I like…
Family, reading, writing & travel.
And chocolate.
At University, I….
Goofed around too much and, along the way, picked up a degree in literature.
Right now, I’m…
I’m studying for CIPS
Reading Kathy Reich’s 206 Bones
Trying to be a dad.
Trying to create more business.
 Recently, we’ve heard a few unsettling reports related to products with alang-alang (thatched grass) roofs.
Alang alang, if you’re not familiar with the term, is quite a common roof component in gazeboes; garden lanterns and tiki bars (as in the picture to the left).
On one occasion, a container with thatched roof was rejected in Hawaii and sent back to Indonesia (where it was not accepted by the authorities and is currently languishing… whereabouts unknown). In another case, the container was accepted into the US but after the thatched roofs were separated and incinerated by US customs.
After searching a little on the US Customs website and talking with a few customs brokers and shipping reps in the US, we’re still not able to find official confirmation that alang alang has been banned but we all agree that at this time, it’s not at all wise to try importing the thatched items.
Sean
A couple of weeks ago, we learned that one of our suppliers had almost been put out of business by a dishonest agent.
The story, in very short form, is a big customer from Europe put together a multiple container order of furniture, decor and handicrafts through his individual / independent agent in Bali.
The order was placed with the manufacturers here with a promise (but not the reality) of a deposit and work proceeded.
After a month or so, the agent requested the balance payment from his customer. All told, about one hundred and forty thousand US dollars (US$140,000).
That’s the last anyone heard of the agent. Disappeared without a trace.
There’s little else to say on the subject except:
- Established companies with a track record are less risky than individuals (I know we’re an established company and therefore biased but it doesn’t make it any less true). You can also ask for references and then check references.
- Forget law. During my time here in Bali, I’ve seen little use or satisfaction from ‘legal channels’ — you’re better off assuming you have no legal recourse and working through your business relationships from that angle. Protect your investment in every way you can. By this, I don’t mean to imply that in Indonesia people are less or more honest than people anywhere else… just that there’s practically no legal infrastructure of use to you if something does go wrong.
Sean
[This is a copy of our June 16th Update Emailed to our Customers]
Good Morning & Merry Christmas!
We’ve just hit the mid-point of June and, as far as we’re concerned, that now means we’re officially at the start of our Christmas Season.
So, from now until the end of the year, our monthly update will include a countdown like this:
You have 83 days left to order your container in time for Christmas.
I’ll take a moment to explain that in case there’s any confusion.
As a general rule, a production order from Indonesia Export takes around 30 days but we allow up to 45 days as a safety margin… I’m including quality controlling, handling any rejects or major problems, packing and preparing to ship.
We also assume 40 days shipping from Bali to your place of business — that accounts for 30 days on the water plus another ten days clearing customs and getting trucked over to your warehouse or store.
Thus, if you order a production container load of products on September 7th, it would be arriving at your place 85 days later…December 1st.
I would say that was about as late as anyone could realistically be to start preparing for Christmas Sales.
Late but doable. So, from where we’re sitting, we can guarantee that any order placed up to September 7th will be at your place in time for Christmas.
After September 7th, we can’t make any promises — we’d need to be rushing, pushing suppliers and crossing our fingers hoping that we can have your order produced quickly and that there would be no major snafus with shipping.
In my opinion (and I’m guessing many people will agree), if you have your products in your hands by mid-November, you’ve got a good start on cataloguing and promoting your inventory ahead of Christmas. In that case, you’ll want to have your orders in to us by the last week of August.
Ok, that’s enough about Christmas – now here’s the Bad News…
…last month, fuel prices in Indonesia went up by around 30% — this will impact on all of our pricing right across the board.
Over the past week, we’ve been struggling against hikes of between 10% and a colossal 44%.
These increases do not affect any orders currently in house and, most likely will not affect any orders throughout June.
We’re doing everything in our power to not raise prices but, truthfully, it’s inevitable – we believe that by the start of July, we’ll have to begin the process of increasing prices over most of our lines.
Usually, I consider it crass to say something like, “Buy Now as Prices will Go Up” but in this case, it’s absolutely true.
You can read more about the fuel hike by clicking here and we’ll be keeping you posted about specific price increases on the News & Updates pages.
And talking about News & Updates…
The last batch of New Products and Updates for June are as follows:
Pirates & Skulls from Indonesia Export
A mix of updated models and completely new items re-organised to make life a little easier.
Wall Decorations
An update to one of our more popular product lines.
MDF Wall Plaque Aquarium
Pretty and inexpensive wall decor — we like these.
Albesia Wood Table Top Items
Cute table accessories.
Storyboards Update
One of my personal favourite products — updated with new models more comprehensive picture sets.
Later this month, we’re expecting a large update to our natural root and vine furniture and accessories lines… we’ll drop you a note about that when it’s done.
Regards,
Sean
Fuel prices in Indonesia rose by a whopping amount last month… nearly 30% across the board.
You may have missed the kerfuffle here… my recollection is that oil prices surged around the world but in Indonesia, it was less about the global market and more about cutting back on government subsidies.
If you had been in Bali on May 23rd, you would have noticed that a few Gas Stations were jam-packed with motorists eager to fill their tanks ahead of the midnight price increase (the other Gas Stations were all closed with HABIS [finished/empty] notices scrawled on bits of cardboard at the front).
Here’s how the increases broke down for us:
- Kerosene increased 25%.
- Premium Gasoline / Petrol / Benzene increased 33%.
- Diesel / Solar increased 27.9%
As you’d expect, price increases of this magnitude will affect everyone in Indonesia.
Everyone and everything.
The price of food has gone up.
Transport costs will go up and, for our customers, the price of furniture and handicrafts will go up.
Salaries will have to go up to cover the shortfall.
This has already started.
Based on conversations with our carvers and suppliers over the past week, we’re looking at product cost increases of between 10% and, shockingly, 44% on certain items.
We’ll do our best to soften the impact as much as we can and phase the higher prices in as slowly as possible and we’ll accompany each increase with a note in our news & updates pages under the General News category.
Sean
 We’ve made a few small changes to our structure over the past 2 days — hopefully, they’ll make your life easier.
The Indonesia Export Site Map
You can access this from our Information tab in the top navigation menu. We hope it will give you a clean and easy way to navigate through the website.
Product Index with Thumbnails
In addition to our Alphabetical Product Index, we’ve now added an Alphabetical Index with Thumbnails (first image from every category). You’ll have to navigate through page by page (using the menu at the bottom) but rather than our sometimes obscure product line titles, you’ll have a handy small image to help you identify what you’re looking for.
Product Index by Type
We’ve also broken down the different product lines into categories that may help you find similar or related product lines while you’re putting together an order. No hard or fast rules, just fairly general headings:
- Furniture
- Classic Bali Carvings — Decorative Artwork & Craft
- Modern Craft — Decorative Giftware & Home Decor from Bali, Lombok & Java
- Candles, Incense & Oils
- Homeware, Tableware & Functional Home Decor
- Stone, Glass, Ceramic & Terracotta
- Stock Lists
(These links, by the way, are clickable — you can use them to go straight to the relevant section on the Product Index.)
Finally, I had removed the Logon link from the top navigation bar — sorry about that, it’s back now.
Afternoon,
Sean
This information can save you a significant amount of money — you might want to consider getting a cup of coffee or whatever — this may take a little while.
If you understood more about how to order a mix of products that utilizes cargo space more effectively; more about cargo rates and how they work; more about how containers actually move along in their travels; and more about how (and where) to buy appropriate insurance for your order; and finally, how to handle your order once it reaches your port …
…then not only would your life (the part that is involved with ordering from someplace like Indonesia) be less stressful, but actually you would save a helluva a lot of money (you do want to keep the profit in your pocket, don’t you?)
It’s interesting — Indonesia Export only has two types of regular customers: 20′ and 40′ container buyers — whose orders run approximately $7,000.00-$12,000.00 and $12,000.00-$30,000.00 respectively.
At this time, about 60% of our customers order full 20′ containers and our remaining customers buy 40′ & 40′ High Cube containers. These customers already understand the great savings in freight costs and the other added advantages of using containers (though it still may be useful for you container buyers to read on)…
…however, I’m really trying to talk to new customers who may know very little about moving a shipment around the world.
Your Shipping Options from Bali
The first thing you need to know is that there are 5 ways cargo can move from here to you:
1. LCL Sea Cargo (less than a container – charged per cubic meter)
2. 20′ Container (30 cubic meters)
3. 40′ Container (60 cubic meters)
4. 40′ High Cube Container (72 cubic meters)
5. Air Cargo
LCL & Full Containers out of Bali
We will not ship an LCL order (less than a container load), but it would be good for you to understand why we won’t do that. (Basically the worst & most expensive way to go because shipping companies hate handling loose crates and charge a fortune for doing so).
Shipping via LCL means that your products are packed into paper cartons and then we build wooden crates around the cartons.
Your crates are then moved to our cargo company; official government documentation is completed; the shipment is then trucked to the port of Surabaya, Java (which is the closest international shipping port to Bali.)
Since your LCL shipment is just a few wooden crates and doesn’t fill a container, then it must wait at the port while the shipping company “consolidates” your order with other small orders going in the same direction. (Specifically, that means your crates sit there [inside/outside?] while the shipping company waits for enough orders to combine with yours and fill a container — usual waiting time: 2-4 weeks — then “X” number transit days on the water to you.)
First major disadvantage: as you’ll see below in the cargo rate example I’ve given you, LCL is much more expensive per cubic meter than a container.
Second major disadvantage: while in a sealed 20′ or 40′ container, you get the full use of the cubic meters inside that container — with LCL wooden crates you lose about 25% of the useable space due to the wood crate and lack of flexibility when packing large products. That means you’re actually paying 25% more just in lost space (remember that, please).
Third major disadvantage: because LCL shipments always have to be consolidated, the transit time is usually double that of a sealed container — for example, a container to the West Coast of the USA takes about 30 days, while an LCL order to the same port more likely will take 45-60 days.
Final major disadvantage: your wooden crates are manhandled in a variety of places. From our warehouse to the truck; from the truck to the cargo company; from the cargo company to the port; from the port to the ship; from the ship to your port; and from your port to your front door. (We happen to be wonderful packers and rarely have breakage, but let’s face it, that’s just not the best way to ship things — how would you move ceramics safely in wooden LCL crates?)
Before I go any further, let me put an example of cargo costs in front of you to make what I’m saying super, ultra clear.
Destination: Vancouver, B.C., Canada
LCL – $195.50 per cubic meter — so if you shipped 8 cubic meters (maybe $2,000.00 or so of product), you would pay about $1,564.00.
Worse, if your order happened to take up 11 cubic meters of space because you ordered large products (like giraffes or cats), you would pay close to $2,150.50. (100% freight costs are a pretty heavy expense given that you can do it a lot more cost-effectively.)
Watch this: the rate for a 20′ container (30 cubic meters including all the related trucking, handling, documentation & miscellaneous charges) to the Vancouver port is $3,875.81 (or about $129.00 per cubic meter). Compared to 30 cubic meters via LCL ($5,865.00), that’s a savings of about $1,990.00 — about 35% less.
Another way of looking at is: for the same price that it would cost you to send 20 cubic meters via LCL, you can send 30 cubic meters by container. (And remember, those 20 cubic meters by LCL were really only 15 cubic meters of product, while the 30 cubic meters in the container is all product!)
Let’s take it a step farther: a 40′ container (60 cubic meters) to Vancouver might cost another $1,000.00, but it would hold an additional 30 cubic meters of product. You basically get a bit over 20 cubic meters of space for free.
And then there’s a larger container, a 40′ high cube (72 cubic meters) that costs just fractionally more than a 40′ regular, but holds another 12 cubic meters. This most often gets used when we planned an order to fit into a 40′ regular, but underestimated the space necessary, so we’ll step-up up to a high cube. Extremely cost-effective.
Now, the example of savings I gave you using Vancouver, holds true for just about every other destination in the world. LCL is the most expensive way and least safe way to go while 20′ and 40′ containers are the safest and most cost-effective.
In addition to the very obvious cash savings, containers have some other significant advantages over LCL shipments:
When we pack an order for a container, we use only cardboard cartons (we do not have to pack anything in wooden crates with the exception of something extremely valuable). Thus, you get the entire use of the 30 cubic meters of space (remember, you’re picking up 25 percent more useable space compared with LCL shipments; and you also save the expense of wooden crates).
When we order a container for your order, we have already pre-planned which ship we’ll be using (and when); a truck is brought down from Surabaya, picks up the container, immediately returns to Surabay
a and puts it on the ship. There is no delay.
Containers going to the United States get there in 30 days or under; Europe usually 3 weeks; Asia, even less time (yeah, there are a couple places, like Trinidad, that can take 45 days or more).
If you plan an order well (and we’re happy to help you massage an order to get the best deal for your cargo money), you can generally get $8,000.00 to $12,000.00 into a 20′ container. And, of course, double those numbers for a 40′ container.
Also, you can see examples of recent freight rates by clicking here.
Air Cargo out of Bali
Every now and then, a new customer wants an order sent via air cargo…
…and our immediate response is “did you know the air cargo costs will equal or be more than the value of your order?” (With the final result being that the customer switches over to LCL sea cargo, which might be as much as 75% less than if the order went by air.)
Most people believe that air cargo is charged out by the kilo; so they “guesstimate” the kilos in their mind and multiply it out by whatever the actual air cargo rate is. However, that “guesstimate” would most likely be very far from right — I’ll explain:
Airlines, in fact, do charge by the kilo, but in addition, also by volume, whichever happens to be greatest. For example, our standard shipping carton is 50 x 58 x 33 cm (20 x 23 x 13 inches). According to the way the airlines think, that carton’s volume is equal to about 15 kilos (33 pounds).
If there is less than 15 kilos of product in that carton, then you still pay for 15 kilos. If there is more than 15 kilos, you pay the greater amount.
Let’s say the air cargo rate for you is about $3.25 per kilo which means that carton costs you in cargo expense at least $48.75. Well, if it’s a carton of low-cost products such as wooden fruit or wooden flowers, or small carvings, etc., (which will definitely weigh less than 15 kilos/33 pounds) then you will have paid more for the cargo than you paid us for the product.
Another example: a cubic meter (100 x 100 x 100 cm or 39 x 39 x 39 inches) of space on an airline is almost always calculated by volume as opposed to kilos and is charged out at 185 kilos or $601.25 (using the $3.25 rate).
Maybe you bought giraffes from us; maybe 6 or 7 of them fit into that space; and maybe you paid us $50.00 for the giraffes. (Do you get it? You would have paid $600.00 to move $50.00 of product. Not good!)
In certain situations, air cargo can be utilized very cost-effectively. Small products with high retail value work fine. Maybe you’re paying $48.75 for that carton of air cargo space, but if you’ve got product in there that you can re-sell for $250.00 — Go for it!
Another situation in which Air Cargo can be extremely effective is that many of our customers take small portions of their Sea Cargo orders via air so that they can get samples quickly in front of their buyers or fill-in some inventory needs.
Cargo Rates
We handle all the cargo arrangements and take care of all necessary official documentation (certificate of origin, B/L, commercial invoice & packing list, quota visas, etc.) for most of our customers.
The reason for this is simple: most of the time we can get better cargo rates here than you can locally.
But sometimes you can get a better deal on your end, so when a new customer sends us his or her first order, we automatically check the rates on this end and also ask you to check the rates on your end. (We don’t make any money on packing or cargo related expenses — whichever rate is best for you, that’s the way we go.)
You can get an idea of recent freight rates out of Bali by clicking here.
Insurance
Insurance for your shipment can be purchased in Indonesia from our cargo company — for a relatively high price.
But, more importantly, collecting a claim from an Indonesian carrier or insurance company sometimes can be a life-long event and in general, not worth the hassle.
If a customer wants to insure their shipment, my advice always is go to your local casualty agent (the same company you buy car & house insurance from) and ask your agent to sell you a policy that insures your shipment “Ex-factory to your front door”. Safest and most cost-effective way to go.
Customs Brokers
One of your responsibilities to yourself is to get on the phone and talk with about five or six customs brokers (or however many necessary) and shop their pricing. You’ll see that the pricing will be all over the place. My personal experience is that you have to bargain with a customs broker the same way you would bargain with a used car salesman. Really!
Anyway, once you have a broker, it’s his or her job to handle all the paperwork that we send, clear your shipment through your customs, settle any duties necessary and so on.
Your customs broker is also a good person to recommend the most cost-effective way of moving your shipment from the port to your front door (remember, we’re charging you only for delivery to your nearest port. Our responsibility stops there and yours begins.)
As you can see, it is necessary that both you and I take great care with regard to the mix of products in your order and how we go about shipping your order.
When we receive your order, we will advise you the approximate cost of shipping it. In addition, we will always make suggestions regarding upgrading or downgrading the size of your order so that you get the most cost-effective cargo rates and methods of shipment.
Did you know that…
…you don’t have to be a gigantic conglomerate to join in the import business. This business got its start about 16 years ago by buying some stuff in Bali and taking a few boxes to Taiwan on the airplane and then re-selling it; and…
…you don’t have to buy $50,000 worth of product or 500 pieces of one model to get started. We’ve set our minimums per product relatively low, so that new customers may start out slowly.
Because you’re buying direct, you can mark-up our price significantly to the end-buyer — and still have a very satisfied customer who feels he or she got their money’s worth.
Most people are absolutely astonished at the mark-up available (and some refuse to believe it) — but there’s no magic involved — up until just a few years ago, these prices were available only to a major buyer who had the time, money, and courage to travel out here. The Internet has given all of us a practical, efficient way to display products for sale and a superbly economical system for communicating about everything at lightening speed.
We have quite a bit of experience retailing in various countries, and in many cases, if you ask our opinion about what sells well and at what price level, we’ll be happy to share our experience with you.
We have helped quite a few people enter the import business from the ground floor and now they are good customers. Of course, we wish the same for you (and for us). Please feel free to question us in any manner you like and we’ll try to help out.
And did you know that…
…most people tend to think that buying and importing products from one country to another is quite difficult, complicated, and involves all sorts of bureaucracy. We’re happy to inform you that that’s not true. In most countries, the procedure is quite simple.
But, most importantly…
…you need someone on this end that you can trust and depend on — to handle your money correctly, to make sure you get the right order, the right quality, the right documents — to complain to if there’s a problem.
We’re in a business that requires repeat customers. Taking care of you is an automatic concern of ours. We do that very well and we’re proud of it.
[More Information about Cost-Effective Shipping]
|
|
