By Jim DeBetta
For most inventors looking to get that great product idea to market, understanding how to find reliable factories is an important step to achieving success. I have been there myself. Working with the wrong factory can spell financial disaster – not to mention the precious time lost. Today, more than ever, working with manufacturers that comply with the new tougher Consumer Product Safety Commission standards is a requirement. Learning the hard way should never be an option, so following some basic rules can ensure that you have a much more enjoyable and profitable experience when producing your products.
1. FIND A RELIABLE FACTORY. There are many good factories in China; however, there are also many bad factories. Finding great manufacturing partners starts with connecting with those that either have a great factory relationship or finding a sourcing broker that has established connections. With the advent of the Internet, it is much easier for anyone to go global. What you must keep in mind is that this same technology also makes it easier for scams. You should also be a little skeptical of factories you are in contact with if they were not recommended to you. It will definitely be worth your time to do your due diligence with each factory to eliminate those that do not meet your needs or lack experience. Using sites like Alibaba and others may be a good way to search for certain factories; but these sites allow most any factory to place an ad or profile, so buyer beware!
2. THE DEVIL IS IN THE DETAILS. You must be crystal clear about what you REALLY want when talking to factory managers. Many factories will have managers that speak English. Keep in mind that they often have limited English abilities. Because of the language barrier when sourcing overseas, make sure you provide excellent drawings (CAD), product samples or prototypes similar to what you want made, and provide detailed descriptions of the product along with clear instructions on package design. For example, many people say they want to manufacture a red shirt in China, but that description doesn’t tell the manufacturer what you really want. Things to think about include the specific materials needed, colors, changes to your sample and more. I always say: write to overseas factories where the language is different like you would write a letter to a third grader. Don’t make it difficult for anyone to understand exactly what your product is and how it works. Keeping the writing clean and simple is the best way to avoid confusion and costly mistakes.
3. LEARN THE TRUE COST TO MAKE YOUR PRODUCT. Can you expect to have your dog leash product made for .50 cents? If you could, what would the quality of that dog leash be? My guess is you would wind up with a dog leash that breaks apart and lets your dog loose! Realistically, you would be expecting to pay a few dollars for a dog leash. Making products in China relies on the same principle as buying most anything – you get what you pay for and you have to be realistic about the quality level when paying to have your products made. If you expect to pay pennies for your products, then that is exactly the type of quality you will get from your product. Remember, your manufacturer still needs to make money off your products and if you keep pushing pricing down, then they will be forced to use lower quality materials.
4. SAFETY FIRST! You heard this from your mom and it has never been more important today. You MUST make sure that your factory can produce your product to meet all safety and regulatory requirements in the country in which you are selling products. How do you do this? First, you need to learn what those safety requirements are. Next, you can get on a plane and visit the factory yourself, bringing an interpreter along to help inspect the quality or hire someone that is experienced in doing such work. Either way, it is your responsibility to ensure that your products are fit for sale, as it is your reputation and business that is on the line.
5. CONTRACTS MAY NOT MEAN MUCH. Ok, so what exactly do I mean by this? Let’s face it… a contract written with a foreign company may be tough to enforce and can be very expensive to draw up and litigate should a serious problem arise. I am not an attorney, but I can tell you firsthand that I have seen way too many inventors spend thousands on detailed legal agreements with factories – only to have no real recourse to resolve an issue. While it is smart to have some sort of agreement in place and an official purchase order that you draw up and present to the factory when ordering your product, the agreement may only wind up being worth the paper it is written on. Bottom line – find a reputable factory and outline your requests in writing and make sure the factory manager understands each point.
Editor’s note: This article appears in the May 2010 print edition.
