This is the fifth post about how to go from idea in to finish product with no money.
In this post I will share my experience on how to find a good supplier and how you can negotiate the prices.
So if you have followed the series we have now a working prototype and a full order to finance the production.
So let’s find a supplier that can fulfill our requirements.
Before contacting the supplier make a requirement document that state everything in details.
It should include:
- Material to be used.
- Material quality requirements.
- Product visual requirements
- Defects that are not accepted
- Law requirements
- Environmental requirements
- And so on.
State that the tool you buy is yours and you have the right to take it to another supplier if they don´t fulfill your requirements.
There are many ways you can find a supplier, here are some ideas.
If you will make let’s say a phone stand, google “phone stand supplier” and go through at least 10 pages.
You can also contact and visit manufacturer in your country. But if you live in Sweden they are usually overpriced and very expensive, but then you also have a good control over the quality.
Many people find suppliers overseas and a good way is to use the site Alibaba.
You have probably hears story on how people lost money on suppliers from Alibaba. I will share with you what to look for to find a good reliable supplier.
First it’s important that the supplier have a gold medal, this means that Alibaba have visited the supplier and verified them as reliable suppliers.
Look for transaction history. How many people have made orders and what is the customer review about them?
Ask for samples.
The supplier always charge high on samples to scare all the people who want free stuff away. You should get the money back when you place your order.
Also an important rule is not to pay 100% of the production before they start. The thumb rule is 30% before production and 70% after the product have been produced and shipped.
Before they ship your product make sure you receive pictures and have a contact with them under production so you can make sure it´s ongoing.
I would recommend that you visit the factory and make an inspection before the ship the product. This can be a bit costly but then you are 100% sure that your product follow your requirements and you Will not get refunds from customers.
If you think this is hard and you need support. We can help you find a supplier, negotiate prices and also make a quality check on the production for you before shipping it.
Our partners in china are experienced and have done this many times.
You will save money with our experienced negotiator who know what the prices are and you also save money that you would have paid to visits the factory. (Flight and hotel).
I hope this gave you some value and that you know where to start.
If you have any questions write it on the comment.