Useful Tips For Beginner In Generator Business

It would help if you started with a small inventory. Standalone generators are costly, and they move. As you test the market, you do not want too much stock lying around.

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There are hundreds of generator manufacturers in China. Today, it is the one-stop center for business people that import all types of generators.

In this article, we will show you why you should place a small order of generators first.

You could stock generator units for homes and small business use. You might also decide to store both industrial and home-use diesel generator sets.

When importing your first batch, make the first order small. There are reasons for that. 

Why Place A Small Order of Generators from China First?

When you start a new business, the first few months or even years are for testing the waters. The same applies when you want to stock generators from China.

Do not start with extensive stock for the following reasons:

To figure out what goes fast.

In China, you can find all types of generators. If you want the small, portable types that use gasoline, they are available. If you want the big ones that use diesel, they are available.

Another thing that determines what type of generator sells fast is the wattage. It’s the first consideration for many buyers.

A typical home needs about 5000 watts to power all the appliances. Buyers check the wattage rating on their devices. They put them together to determine what generator size they need.

For whole house generators, people choose between the 5000 and 7000-watt generators. For your first stock of entire house generator sets, start with a small store. 

Start with a small inventory of the three-phase diesel generator sets. You are testing the waters to know what can sell fast. You can increase your List with the following batches that you order.

Generators are slow-selling products.

With market research, you can try to predict the sales trend for generators in your area. But you can never get it all right. Make a small order of generators to try the market out. 

In some months, for instance, in the rainy seasons, home-use generators might sell fast. In the warm months, you might not sell so much.

Most countries have an aging power grid that suffers outages in extreme weather. For business, you might stock more home-use generator units. 

Start with a small order first. When you know the buying trends of your target customers, you can increase your inventory.

Slow selling products need aggressive marketing. It’s also a good idea to engage in new marketing concepts. For instance, you can try experiential marketing (more one-on-one engagement with customers).

Engaging potential (target) customers has many benefits. One of them is that you will know firsthand the types of generators people want for their home or business.

To find out the reception in the market.

If you are stocking a new type of generator set from China, you want to start with a small order. The idea is to find out whether people receive them well.

With new products, there could be a need for after-sale service as well as customer support. Some customers could also decide that the product does not meet their needs and they would like it.

Thus, there could be several returns. That’s why it is always essential to make a small order of new products. Once you establish that they got a positive reception, you can increase the following demand.

Portable generators are affordable, and they can sell fast. But the more significant, standalone ones can be pretty expensive. So, you do not want to stock too much of a costly product before knowing how the market will receive it.

To create a good rapport with your suppliers.

Importing generators from China is simple. But it is rare to get them from manufacturers. You will be getting your generator sets from agencies in or out of China.

Thus, you want to establish a good rapport with your agent. For instance, you want to know how they can handle returns if there are any.

Finding a good supplier for generators is significant. It determines many things, including how much money you can save and what cost you can pass on to your customers.

Until you know that you have a reliable supplier, you cannot order a large inventory.

There are three types of agencies to consider. One is the single-sourcing agency, which takes one client at a time. In this case, you will be the client.

You could also consider going with a sourcing agency. It has many sourcing agents under its umbrella, dealing with select items. They can get your generators faster because they have an agent who specializes in that.

The third option is the sourcing and logistic agencies. These full-blown organizations source, package, ship, and even deliver your generators.

As you place your order, make sure that the agency sends you all the documents. These documents are: 

· Bill of lading

· List of items

· Fumigation certificate 

· Certificate of origin

Your supplier must assure you that the products will undergo 100 percent inspection. 

To keep more liquid cash for your business.

In your new business of selling generators, you do not want to tie up all your capital in the inventory.

You will have many other uses for your money. Since you have to market your product, some of the money will go there. Another amount can go into creating and maintaining an online presence. 

When you start with a small order, you can keep some money aside for marketing. Today, shipping from overseas can happen relatively fast.

Instead of stocking too many generators, you can order what your customers need, when they need it. 

With fast shipping methods, it is possible to buy generators on demand. The benefit of doing this is that you don’t have too much inventory lying around. 

Industrial generators do not move fast enough. Thus, if you buy a large inventory, you will have your money tied up in the stock. 

How To Place an Order for Generators – 3 Vital Tips

When you are buying generators to sell, you need to know how to make your order right. Here are a few guidelines that may help you:

Buy from manufacturer-vendor

Some manufacturers of diesel GenSets are also vendors. If they ship their products to your country, you can order from them than using an agency. 

Having to buy straight from the manufacturer can save you more money. Since there is no agency commission to pay, you will not pass a lot of cost to your customers. 

Find the right agency.

We couldn’t overemphasize the importance of finding the right agency. To remind you, this can be a single-sourcing agency. It can also be a sourcing agency or a sourcing and logistic agency.

Generators can cost thousands of dollars. Thus, a good agency is going to help you get good value for your money.

They will ensure that the generators are in the standard and quality that you ordered. If they are not, they should give you a channel to return the goods.

It is essential to agree on how to handle returns and warranty before you make your order.

Another thing that you need to ask your agency is whether they can supply the small order that you want.

If you need 20 generator sets for your first order, an agency with a small mandate of 100 will not help you.

Do your market research.

When you do market research, you’ll be gathering data about customer’s needs. You will find out the type, size, and wattage that your customers want. After that, you can place your order for the first batch of generators. 

Numbers do not lie. Thus, if your research shows you that 5000-watt generators are in high demand, stock them.

If it shows you that commercial and RV diesel generators are in demand, stock them. Also, find out what parts you should store with the generators.

Do you intend to sell to industrial customers? Start with a small stock of three-phase diesel generators. They are costly, and they move. 

If you are targeting residential customers, you should stock on single-phase generators. They move faster than the three-phase ones, but all the same, start with a small inventory.

Find information about the product.

You cannot convince customers to buy your generators if you do not know anything about them. Also, you cannot know whether your supplier is giving you value for money.

Some of the things that you ought to know include: 

· How much the generators consume

· How often you should service it

· Where to get replacement parts and other factors

Also, compare similar products from two or three suppliers to get the best deal. There is no point making an order with a pricier agency when you can find the same products at a lower price.

You have to factor in other costs and your profit as well. You will pass all these costs to your customers. 

Thus, even with the buying price plus the other costs, you need to know you can still sell at standard market rates.


If you intend to start importing generators for sale, you need all the information you can get.

It would help if you started with a small inventory. Standalone generators are costly, and they move. As you test the market, you do not want too much stock lying around.

Information is critical. Thus, research the best agencies in China to help you import generators to your country. 

Your agency choice can be a deal maker or breaker for your business.

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Hey all, I'm Baymax Yan, working at a generator manufacturer and Having more than 15 years of experience in this field, and I belives that “learn and lives.” The sure thing is that I can often help my work. So I have created the blog to share all my knowledge with you. Hope my sharing helps!

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