Turning Challenges into a Long-Term Partnership with a Major U.S. Cork Tile Brand

A major U.S. cork tile brand needed a new manufacturer in China after their supplier raised prices. Then our own factory misquoted — fifteen percent below cost — and the client was unwilling to accept a later increase. We ran the first order at a loss and said so plainly, on the understanding that later orders would be priced properly. That bought more than five years of repeat orders and expansion into other lines.

Background

FancyFix secured a partnership with a major U.S. cork tile brand. Product we manufacture reaches retail chains like Walmart, Home Depot, Lowe's, Kmart, and Nitori — under our partners' brands, not ours. The brand operates its own factory in the United States, producing a portion of its self-adhesive products domestically while importing others from China. One of their flagship products, cork tiles, enjoys significant brand recognition in the U.S. market. Due to a significant price increase from their existing supplier, the brand needed a new, reliable cork tile manufacturer in China.

The client's challenges

• High quality requirements. The client had specific requirements for cork-granule size and insisted on a clean, uniform appearance; packaging had to strictly follow the client's specifications.
• Tight pricing. The main contact understood manufacturing costs in China well, which left very limited margins for us.
• Strict delivery deadlines. The client accepted only early deliveries and could not tolerate delays.
• Stringent testing requirements. The products had to pass the client's required chemical-safety and quality testing.
• Initial quotation issue. Due to a factory pricing error, our first quote came in 15% below cost. The client was keen to collaborate but unwilling to accept later price increases.
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Our solutions

• Understanding the client's dilemma. We spoke with the client's China representative, who acknowledged our initial quote was below market. The client was in a difficult position — their existing supplier was no longer viable and timely delivery was critical, so they urgently needed to place orders to meet their own customer commitments.
• Demonstrating commitment. To show our sincerity, we offered to fulfill the first order at a loss, with the understanding that future orders would be at adjusted prices. This demonstrated our commitment to a long-term partnership, which the client appreciated and communicated to their U.S. counterparts.
• Finding a mediator. When negotiations over future pricing stalled, we enlisted the client's China representative and offered a small additional adjustment to start the partnership, bridging the gap and leading to the order.
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The results

Running that first order at a loss — and saying so plainly — led to a long-term relationship with this U.S. cork tile brand, spanning over five years of regular repeat orders and expansion into other product lines.

Conclusion

• Short-term loss for long-term gain. Accepting an initial loss can pave the way for a profitable long-term relationship.
• Proactively solving problems. Helping clients overcome their challenges fosters growth for both parties.
• Detailed, responsive service. Listening closely and offering professional, customized solutions builds strong, trust-based relationships.