How Partners Earn

The JH Auto Partners Program allows you to set customer-specific selling prices within a defined margin limit and earn the price difference after applicable deductions. This page explains the pricing model, earnings calculation, factors that influence income, and important tax considerations.

The Pricing Model

FOB Nansha Base Price

Every vehicle in the JH Auto inventory has a FOB (Free on Board) Nansha base price. This is the price at which the vehicle is made available to you, loaded onto the ship at Nansha Port in Guangzhou, China.

FOB Nansha includes:

• Vehicle purchase cost
• Domestic transportation to the port
• Pre-export inspection and preparation
• Loading onto the vessel

FOB Nansha does NOT include:

• International shipping costs
• Destination port charges
• Import duties or taxes in the buyer’s country
• Destination country registration or compliance costs

The base price is what you see for every vehicle after you log in:

Customer-Specific Markup

The JH Auto sales system allows you to add a customer-specific markup of up to 60% above the FOB Nansha base price.

Example:

• FOB Nansha Base Price: USD 10,000
• Maximum Permitted Markup (60%): USD 6,000
• Maximum Permitted Customer Price: USD 16,000

You control the markup for each customer and each vehicle within this limit. You can also switch a quote between FOB Nansha and a CIF destination-port price by adding the current sea freight.

Earnings Calculation

Basic Formula

Your Earnings = Customer Price - FOB Nansha Base Price - 8% Withholding Tax

Detailed Example

Customers pay JH Auto directly by international bank transfer (T/T). Two real payment slips from overseas buyers, with account details hidden:

Earnings Scenarios

The following table illustrates potential earnings at different base prices and markup percentages.

Important Notes:

• The 60% markup is a maximum system limit, not a guaranteed profit margin
• Higher markups may reduce customer competitiveness in price-sensitive markets
• Lower markups may increase transaction velocity but reduce earnings per vehicle
• Your actual earnings depend on successfully completed transactions

Understanding the 60% Markup Limit

What It Is

The 60% markup limit is a pricing allowance built into the JH Auto sales system. It represents the maximum percentage you can add to the FOB Nansha base price when generating a customer quote.

What It Is NOT

• ❌ A guaranteed 60% profit margin
• ❌ A recommended pricing strategy
• ❌ Your actual earnings rate (earnings are calculated after withholding tax)
• ❌ A promise of transaction completion

How to Use It

Factors to Consider When Setting Your Markup:

1. Local Market Prices: Research what similar vehicles sell for in your target market
2. Customer Budget: Understand your customer’s price sensitivity
3. Vehicle Desirability: High-demand models may support higher markups
4. Competitive Landscape: Consider what other sellers are offering
5. Transaction Urgency: Customers with urgent needs may accept higher prices
6. Your Positioning: Are you competing on price, service, or exclusivity?

Example Strategy:

• Standard Markup: 25-40% for most transactions (competitive and profitable)
• Premium Markup: 45-60% for high-demand vehicles or customers with specific urgent needs
• Promotional Markup: 15-25% to win first-time customers or move slower inventory

When Earnings Are Settled

Partner earnings are paid after the vehicle is exported or shipped, according to the settlement terms specified in your signed partnership agreement.

Typical Settlement Timeline

1. Customer Pays: Customer transfers payment to HC HOTEL SUPPLIES CO., LIMITED
2. Payment Confirmed: Typically 1-3 business days
3. Vehicle Prepared for Export: 7-14 days (inspection, licensing, documentation)
4. Customs Clearance and Loading: 3-7 days
5. Export Complete / Shipment Departs: Vehicle leaves China
6. Earnings Calculation: JH Auto calculates your earnings based on the transaction
7. Settlement Processed: Earnings are transferred to your designated bank account

Total Timeline from Customer Payment to Your Earnings: Approximately 2-4 weeks after shipment, depending on the settlement terms in your agreement.

Why Settlement Occurs After Export

This timing protects both JH Auto and partners from:

• Transaction cancellations before vehicle shipment
• Vehicle unavailability discovered during final inspection
• Customer payment reversals or disputes
• Export licensing delays or complications

Once the vehicle has been successfully exported or shipped, the transaction is considered complete and your earnings are settled.

Tax and Withholding

8% Withholding Tax

Partner commission payments from HC HOTEL SUPPLIES CO., LIMITED (Hong Kong) are subject to an 8% withholding applied to the gross margin (price difference).

What This Means:

HC HOTEL SUPPLIES CO., LIMITED withholds 8% of your gross margin before transferring your net earnings. This withholding is applied under the company’s applicable tax treatment for cross-border commission payments.

Example:

• Gross Margin: USD 5,000
• Withholding (8%): USD 400
• Amount Transferred to You: USD 4,600

Your Tax Responsibilities

The 8% withholding does not necessarily satisfy your final tax obligations.

Depending on your country of residence, business structure, and local tax laws, you may need to:

• Declare this income on your personal or business tax return
• Pay additional income tax, self-employment tax, or VAT
• Keep records of your transactions and earnings
• Obtain tax advice from a qualified professional in your jurisdiction

JH Auto does not provide tax advice. Partners are solely responsible for understanding and fulfilling their tax obligations in their own countries.

Factors That Influence Your Earnings

1. Customer Development Capability

Your ability to identify, reach, and convert potential vehicle buyers is the primary driver of earnings.

High-Performing Partners:

• Build trust through valuable content and consistent engagement
• Maintain active social media channels or customer networks
• Respond quickly to inquiries and follow up on warm leads
• Understand their target market’s vehicle preferences and budget ranges

2. Pricing Strategy

Competitive pricing increases conversion rates, but lower markups reduce earnings per transaction.

Finding the Balance:

• Research local market prices for comparable vehicles
• Test different markup levels and monitor conversion rates
• Adjust pricing based on vehicle type, market demand, and customer urgency

3. Vehicle Selection

Some vehicles are easier to sell than others.

Easier to Sell:

• High-demand brands and models in your market
• Vehicles with popular features (SUVs, automatic transmission, low mileage)
• Competitively priced inventory

Harder to Sell:

• Niche or unfamiliar brands
• Higher-mileage or older vehicles
• Vehicles outside the typical budget range in your market

4. Market Knowledge

Understanding your local market’s preferences, regulatory environment, and competitive dynamics improves your success rate.

Key Market Factors:

• Import regulations and duties
• Emission standards and compliance requirements
• Popular vehicle types (sedans, SUVs, trucks)
• Left-hand drive (LHD) vs. right-hand drive (RHD) requirements
• Customer financing availability
• Typical budget ranges

5. Customer Service Quality

Professionalism, transparency, and responsiveness build customer confidence and increase close rates.

Best Practices:

• Provide accurate vehicle information
• Set realistic expectations for timelines and costs
• Maintain clear communication throughout the process
• Address customer concerns promptly and honestly

Realistic Earnings Expectations

Variable Income

Partner earnings are not a salary. Income varies based on:

• Number of transactions completed
• Markup percentage set for each transaction
• Vehicle price points
• Market conditions and customer demand
• Time invested in customer development

Early-Stage Partners

New partners typically:

• Spend initial weeks building audience trust and promotional reach
• Complete 0-2 transactions in the first 1-3 months
• Earn USD 1,000 - 5,000 in their first successful transactions
• Gradually increase transaction volume as they develop customer networks

Established Partners

Partners with consistent customer flow may:

• Complete 2-5 transactions per month (varies widely)
• Earn USD 3,000 - 15,000 per month (depending on transaction volume and markup)
• Develop repeat customers and referrals over time

These are illustrative ranges, not guarantees. Your actual results depend entirely on your own efforts, market conditions, and customer demand.

Risk Factors

No Guaranteed Income

• You only earn when transactions are completed
• Customers may decide not to purchase after viewing quote links
• Market demand for vehicles fluctuates
• Competitive pricing may limit your markup potential

Transaction Completion Dependency

• Earnings are settled only after successful export or shipment
• Transactions may be delayed or cancelled before shipment
• Vehicle availability may change between quote generation and customer decision

Market and Regulatory Risk

• Import regulations may change in your target market
• Currency exchange rates may affect customer purchasing power
• Economic conditions may reduce customer demand

Why This Model Works

Despite the variable income and transaction-based earnings, the JH Auto model offers several advantages:

No Inventory Risk

You never purchase vehicles upfront. If a customer doesn’t buy, you have no financial loss.

Low Barrier to Entry

No franchise fees, inventory investment, or showroom costs required.

Scalability

Once you’ve developed a customer base and established systems, you can handle increasing transaction volume without proportional increases in effort.

Learn Before You Invest

If you’re interested in the used car export business, this model allows you to test the market, build experience, and develop customer relationships before committing to independent operations or inventory investments.

Many partners use this as a low-risk proving ground to determine if the used car export business is viable in their market. If it works, they can continue as partners or eventually transition to independent operations. If it doesn’t, they’ve learned valuable lessons without significant financial loss.

Payment and Banking

Payment Method

Earnings are transferred via international bank transfer from HC HOTEL SUPPLIES CO., LIMITED (Hong Kong) to your designated bank account.

Bank Account Requirements

You must provide:

• Bank name and branch
• Account holder name (must match your partnership agreement)
• SWIFT/BIC code
• Account number or IBAN
• Bank address

Transfer Fees

Bank transfer fees may be deducted from your earnings or split according to the terms in your partnership agreement. Typical international transfer fees range from USD 10-40 per transaction.

Currency

Earnings are typically settled in USD. Your receiving bank will convert to your local currency if your account is not denominated in USD. Exchange rates and conversion fees are set by your bank.

Increasing Your Earnings Potential

Build a Strong Social Media Presence

Larger, more engaged audiences increase your reach and customer development potential.

Create Valuable Content

Educate your audience about:

• Benefits of China-sourced used vehicles
• How the import process works
• Vehicle selection tips
• Financing and budgeting strategies

Develop Customer Relationships

Satisfied customers may:

• Purchase additional vehicles in the future
• Refer friends and family
• Leave positive testimonials that build your credibility

Focus on High-Demand Inventory

Identify which vehicle types, brands, and price ranges generate the most customer interest in your market, and focus your promotional efforts there.

Test and Optimize Pricing

Track your conversion rates at different markup levels. Adjust your strategy based on data, not assumptions.

Questions About Earnings?

For specific questions about earnings calculation, settlement timing, or payment methods, please refer to your signed partnership agreement or contact JH Auto directly via the WhatsApp chat button on this page.

For general questions, see our Frequently Asked Questions.

Ready to Apply?

If you understand the earnings model, accept the variable income nature of commission-based sales, and are prepared to invest effort in customer development, we invite you to apply to the JH Auto Partners Program.