Based on the offer, the customer now places its OEM order with Holst Porzellan GmbH, or its sister company GFP German Fareast Porcelain Ltd. in Hong Kong.
Placing an order should never be done to satisfy the customer's taste. This phase of the OEM business is definitely too time-consuming and too expensive for that. Whether the handle of a cup looks "better this way or that way" .... or the flag of the plate looks nicer "wider or narrower"... must necessarily have preceded the placing of the order!
The concretization of the subject of the order must be completed in the design development!
When the order is placed, the part of the OEM order that is also costly for the customer begins, because now a large number of people and institutions start to realize the customer's specifications. In the first stage of order realization, we as the order taker are obliged to create a so-called "order sample" (zero sample / release sample). To create a ceramic sample, the entire process of mold making must be completed, because without a mold, no sample."
As a rule, the following costs are incurred.
- project costs, drawings, CAD designs
- briefing of the modeller (usually on site)
- mould making
- production and firing of the zero samples
- air freight and import of the order samples into the EU
- passing on the tested samples to the customer
- production release by the customer
It is not uncommon that we have to carry out the briefing for the model setup ourselves on site for the realization of a customer request. Such a procedure is usually agreed with the customer in advance as to who will bear what cost burden in such an urgent procedure. But even in the "normal course", the development costs for an order sample quickly amount to between 1,000 and 5,000 EUR.
If - for whatever reason - an order is not placed, the customer shall be obliged to bear the costs of the sample creation. This shall be done upon presentation of corresponding receipts which are to be allocated to the sample production for this OEM order. In deviation from this, a "no-show" arrangement can also be made in advance between the customer and the order taker. Such an arrangement covers the costs incurred by the customer for the order sample, but is never "more favorable" than assuming the actual costs.
Depending on the effort, country and production method, the zero sample is ready after about 6 weeks and can be presented to the customer as a release sample.