Beads of Bali

Many lovers of Bali sterling silver beads know that the lowest prices can usually be obtained by buying direct from a Bali supplier. Sometimes the savings can be considerable.  Even so, many beaders are afraid to purchase from a foreign company.

There are many considerations when deciding whether to buy your Bali beads from a local importer or direct from a Bali source. In this brief article we discuss the pros and cons of buying directly from Bali.

Product Prices

The first thing you need to do is compare your trusted local source of Bali beads with the prices charged by Bali suppliers. There are actually considerable differences among the Bali companies in pricing.  Some of the better prices come from small groups of silversmiths who sell directly to foreigners through a website. For these groups the goal is to recover the cost of materials and overhead, and then receive compensation for their labor. Since they are not buying from other silversmiths and reselling at a mark up, the do not have to charge as much.

Even when buying direct from Bali, shop around!

Product Quality

Paying a low price for lower quality product is never a good deal.  Google any potential supplier to see what their customers are saying about them.

"Wholesale"

The word "wholesale" is used liberally in Bali, and in a way that is not completely consistent with the meaning of "wholesale" in the United States.  In the U.S., "wholesale" refers to business-to-business (B2B) transactions. To qualify for the wholesale price you may be asked for your state reseller's license.

In Bali, "wholesale" is used to convey the idea that products are being offered at low prices.  The Bali bead merchant could not care less if you are incorporated as a business. They just want to sell, sell, sell.

"Wholesale discounts" is typically used in Bali to refer to a discount schedule whereby you pay less the more you buy (even if you are not a business and have no reseller's permit).  Most Bali companies offer such discounts for large purchases.  Sometimes these discounts require an order of a few hundred dollars.  For other companies, threshold is set higher.

Order a lot for the best price!

Shipping Costs

Shipping costs from Bali can be high. However, the larger companies have negotiated discounted shipping rates from major shippers, such as FedEx. As a result, the shipping costs may not be as high as you might think.  The key is to order in large quantity (consider creating a buyers group with your beading friends) to spread the cost of shipping over a larger order.

Free Shipping is offered on occasion by Bali-based companies, but resist the knee-jerk tendency that some consumers have to assume that free shipping is always a good deal. One company that we know of offers free shipping on larger orders (and free insurance, too), BUT their prices are considerably higher than competitors who offer no free shipping option.  Free shipping is one factor to consider, not a litmus test.

Payment Options

In recent years, purchases from a Bali company required that you first wire funds to the company's bank.  These days, most reputable companies can accept credit card payments. Of course, their preference is for a bank wire, which puts the transaction cost on you.  Unless you really trust the company you are dealing with, we recommend a credit card purchase to obtain some protection.

Check with your credit card company first, however, to see what protections are in place.  The laws that protect you in your U.S. transactions can be different than the laws in place in other countries.

Time Considerations

For the jewelry designer, time may very well be money.  If you need your product and need it now, a local importer will probably be able to get your product to you faster than a company located on the other side of the planet.

It is also important that you ask if the product you wish to order is in stock. Some companies maintain a stock; these tend to be the larger companies. Others will ask for a bank wire to cover the material costs of your order (based on the silver/gold prices on that day), and then make your product upon receipt of funds. Of course, you may need to wait a few weeks for your product, but the companies that operate in this way often offer the best prices. After all, this business model does not require as much infrastructure costs (such as warehousing and security). Nor do they need to tie up their capital in unsold inventory.

Security

There are potential risks to buying from an overseas company.  First, your shipment may get lost.  You need to make sure that your order is insured in some way as the risk of loss is real.  We recommend that you insist on a shipper who can track your package along its journey. Most companies have arrangements with FedEx, UPS and EMS.   (We have had bad experiences with EMS, and cannot recommend them, but to be fair we know of others who have never experienced problems with this company.)

Second, upon inspection at customs (or processing within the shipper's facilities) some of your product could disappear.  Although the Balinese people are renowned for their honesty, there are always a few bad apples in every nation.  This is why insurance is important.  Over the years we have shipped many packages (as well as 40-foot containers) from Indonesia to the United States. We have had a problem with theft only once.  The shipper, DHL, came through for us, compensating us completely for our loss.

Third, your package could arrive damaged. An order coming from Bali to the U.S. has more of an opportunity to receive damage than a package shipped from, say, San Francisco to New York.  Again, insurance is the key.

Fourth, there is always the possibility that there is no company behind a website purporting to sell Bali beads, findings and jewelry. We have never heard of such a thing happening in the Bali silver trade, but to protect yourself buy only from established companies and Google first!

Conclusion

If you need just a few items, you will probably spend less buying from a local source. However, if you wish to maximize your savings, you may find that buying direct from Bali -- in large quantities -- may be the way to go.