Equipment Sourcing Guide

1. Sourcing Strategy Overview

Luxa Salon Suites will implement a split sourcing strategy to optimize cost while maintaining quality and reliability:

Key Principle: Source from US for items where warranty, installation support, or code compliance is critical. Source from China for standard FF&E where quality can be verified and lead time allows.

Budget Context (from Phase 8):

• Total FF&E budget: $25,000-$50,000 (mid estimate ~$35,000)
• Split sourcing target savings: $10,000-$15,000 vs all-US sourcing

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2. Equipment by Category and Recommended Source

Category A: US Sourcing (Warranty/Support Priority)

Items where US sourcing is recommended due to warranty, installation support, code compliance, or technical specifications.

Category A Total: $27,200-$51,900 (includes construction items)

US Vendor Directory:

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Category B: China Sourcing (Cost Savings Priority)

Items where China sourcing offers 40-60% savings with acceptable quality risk and lead time allows.

Category B Subtotal (FOB China): $9,360-$18,360

Add for Landed Cost:

• Tariffs (~30% of FOB): $2,808-$5,508
• Shipping (LCL): $1,500-$3,000
• Customs broker: $300-$500
• Last-mile delivery: $500-$1,000

Category B Total Landed: $14,468-$28,368

vs. US Equivalent: $24,750-$56,300

Savings: $10,000-$28,000 (40-50% savings)

China Vendor Directory:

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Category C: Local/Tenant-Provided

Items sourced locally or provided by tenants.

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3. China Sourcing Process

Step 1: Vendor Selection (Week 3-4 of Project)

Vendor Qualification Checklist:

• Trade Assurance seller on Alibaba (payment protection)
• Minimum 3 years in business
• Gold Supplier status preferred
• ISO9001 certification
• CE or SGS certification for applicable items
• Positive reviews (4.5+ stars, 50+ reviews)
• Responsive communication (responds within 24 hours)

Initial Outreach Template:

Subject: Inquiry - Salon Suite Equipment Order (18 units)

We are opening a salon suites facility in Virginia, USA and need:
- 18 styling chairs (hydraulic, with footrest)
- 18 styling mirrors (36" x 48" minimum)
- 18 carts/trolleys
- 18 wall cabinets (30" x 24" x 12")
- 15 base cabinets (36" under-counter)
- 1 reception desk

Please provide:
1. Catalog/product options
2. FOB and DDP pricing to South Riding, VA
3. Sample availability and cost
4. Production lead time for bulk order
5. Quality certifications
6. Trade Assurance order process

Thank you.

Step 2: Sample Evaluation (Week 4-6)

Sample Order Protocol:

• Order 1 sample of each major item ($50-$100 per item)
• Budget: $300-$500 for samples
• Evaluate in person before bulk order

Sample Evaluation Checklist:

• Finish quality matches photos/description
• Dimensions within tolerance (+/- 5mm)
• Hydraulic function smooth (chairs)
• Hardware quality acceptable
• Color/material matches spec
• No defects (scratches, dents, misalignment)
• Assembly instructions clear
• Approved for production run

Step 3: Quality Control (Before Shipment)

Pre-Shipment Inspection (Required):

• Use third-party inspection company
• Cost: $200-$400 per inspection
• Schedule when production 80% complete

Inspection Companies:

AQL Standards (Acceptable Quality Level):

Inspection Checklist:

• Quantity matches order (count all items)
• Color/finish matches approved sample
• Dimensions within tolerance
• Hydraulic function test (chairs: lift/lower 10 cycles)
• Swivel function test (smooth rotation)
• Recline function test (if applicable)
• Hardware complete (screws, bolts, assembly parts)
• Packaging adequate for international shipping
• Labeling correct (no mislabeled items)

Step 4: Logistics & Shipping

Shipping Terms (Recommended):

Always request DDP or DAP quotes for accurate cost comparison.

Logistics Partners:

Shipping Timeline:

• Production: 15-25 days after order
• Sea freight (LCL to Baltimore): 30-40 days
• Customs clearance: 3-5 days
• Last-mile delivery: 2-5 days
• Total: 50-75 days from order to delivery

Step 5: Payment Terms

Trade Assurance Payment Schedule:

Payment Rules:

• NEVER pay 100% upfront
• ONLY use Trade Assurance on Alibaba (payment protection)
• Pay via Alibaba platform, not direct wire transfer
• Keep all communication in Alibaba message system (evidence)

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4. Landed Cost Calculation Template

Use this template to calculate true landed cost for China-sourced items:

LANDED COST CALCULATION

Item: _______________________
Quantity: ___________________

FOB China Price (per unit):           $________
   x Quantity:                        x________
= FOB Total:                          $________

+ Sea Freight (LCL estimate):         $________
   (Budget $500-$1,000 per CBM)

+ Import Duties:                      $________
   (FOB x 30% effective rate)

+ Customs Broker Fee:                 $________
   ($150-$300 flat fee)

+ Pre-Shipment Inspection:            $________
   ($200-$400 per inspection)

+ Last-Mile Delivery:                 $________
   ($200-$500 to site)

= TOTAL LANDED COST:                  $________

Per-Unit Landed Cost:                 $________
   (Total / Quantity)

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COMPARISON

US Retail Price (per unit):           $________
US Total (Quantity x Price):          $________

SAVINGS:
Dollar Amount:                        $________
   (US Total - Landed Cost)

Percentage:                           _______%
   ((US Total - Landed Cost) / US Total x 100)

Example: Styling Chairs (18 units)

FOB China Price: $200/chair
Quantity: 18

FOB Total: $3,600
+ Sea Freight: $800 (est. 2 CBM)
+ Import Duties: $1,080 (30% of FOB)
+ Customs Broker: $250
+ Inspection: $300
+ Last-Mile: $400

TOTAL LANDED: $6,430
Per-Unit Landed: $357/chair

US Retail: $800/chair
US Total: $14,400

SAVINGS: $7,970 (55%)

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5. Order Timing (Critical for Construction Schedule)

Order Timeline

PROJECT START (WEEK 0)
│
WEEK 3-4 ────────────────────────────────────────────────────────
│
├── Finalize China vendor selection
├── Place sample orders ($300-$500)
│
WEEK 5-6 ────────────────────────────────────────────────────────
│
├── Receive and evaluate samples
├── Approve samples for production
│
WEEK 6-7 ────────────────────────────────────────────────────────
│
├── PLACE CHINA BULK ORDER (45-75 day lead time)
│   └── Pay 30% deposit via Trade Assurance
│
WEEK 8-10 ───────────────────────────────────────────────────────
│
├── Order US equipment (shampoo bowls, washer/dryer)
│   └── 2-3 week lead time
│
├── Order access control system
├── Order security cameras
│
WEEK 10-12 ──────────────────────────────────────────────────────
│
├── Construction begins (after TI Permit)
├── Production ongoing in China
│
WEEK 11-12 ──────────────────────────────────────────────────────
│
├── Pre-shipment inspection (China)
│   └── Approve or reject before balance payment
├── Pay 70% balance after inspection passes
│
WEEK 12-14 ──────────────────────────────────────────────────────
│
├── US equipment arrives
│   └── Install shampoo bowls during rough plumbing
│
WEEK 14-16 ──────────────────────────────────────────────────────
│
├── China shipment in transit
│
WEEK 16-17 ──────────────────────────────────────────────────────
│
├── CHINA EQUIPMENT ARRIVES
│   └── Inspect upon receipt, document any damage
│
├── Construction nearing completion
│
WEEK 17-18 ──────────────────────────────────────────────────────
│
├── Install FF&E (chairs, mirrors, cabinets)
├── Install access control, cameras
│
WEEK 18-20 ──────────────────────────────────────────────────────
│
├── Final inspections
├── Certificate of Occupancy
├── Salon Permit inspection
│
WEEK 20-22 ──────────────────────────────────────────────────────
│
└── OPEN FOR BUSINESS

Critical Timing Notes:

1. China orders MUST be placed by Week 6-7 to arrive before construction completion
2. US shampoo bowls needed early for rough plumbing (Week 12-14)
3. Build 2-week buffer for shipping delays
4. Have US backup vendors identified for critical items

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6. Vendor Contact List

US Vendors

China Vendors (Alibaba)

Note: Verify current Alibaba store URLs and Trade Assurance status before ordering

Service Providers

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7. Risk Mitigation

Quantity Buffer

• Order 5% extra for breakage/defects on fragile items (mirrors, glass)
• Round up to next standard packaging unit

US Backup Vendors

Damage Protocol

1. Upon Delivery:

   • Inspect all packages before signing
   • Photograph any external damage
   • Note damage on delivery receipt

2. Upon Unpacking:

   • Inspect each item within 48 hours
   • Photograph all damage
   • File claim with Trade Assurance within 15 days

3. Replacement Options:

   • Request replacement from China vendor (if time allows)
   • Order replacement from US backup vendor
   • Negotiate credit for future order

Tariff Contingency

• Current effective rate: ~30%
• Built into landed cost calculations
• Monitor USTR announcements for rate changes
• Consult customs broker for HTS code verification before large orders

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8. Equipment Specifications Quick Reference

Styling Chairs

• Hydraulic lift (360+ degrees rotation)
• Footrest included
• Weight capacity: 300+ lbs
• Seat height range: 18-25 inches
• Base diameter: 24-26 inches

Styling Mirrors

• Minimum size: 36"W x 48"H
• Frameless or modern frame
• LED surround preferred (Plus tier+)
• Shatter-resistant recommended

Shampoo Bowls (US Source)

• Backwash style
• Ceramic or acrylic
• Integrated faucet
• Spray hose included
• Tilting basin preferred

Wall Cabinets

• Size: 30"W x 24"H x 12"D
• Laminate finish (white or gray)
• Adjustable shelves
• Soft-close hinges

Base Cabinets

• Size: 36"W x 34"H x 24"D
• Under-counter style (shampoo area)
• Laminate finish
• Drawer + cabinet combination

Access Control

• Keyless smart lock
• Remote access capability
• Audit trail logging
• Battery backup (8+ hours)

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Equipment Sourcing Plan Complete - Phase 09-02 Task 2