Is Your Manufacturer a Fraud?

How to determine if your manufacturer is a fraud
Three Ways to Validate Your Manufacturer Without Visiting Them

Let’s face it, finding a manufacturer is a nightmare. With thousands of fraudulent manufacturers online, how can you tell who is who without meeting them face to face?

For entrepreneurs, a manufacturer can make or break your business. A good one will never delay your order and always produce quality products. Bad ones, seem to come up more often, and they will manufacture products that aren’t to spec, overprice their goods, and may even end up stealing from you.

In today’s landscape, finding a manufacturer is much easier said than done. Luckily for you, over our years of working with the world’s top manufacturers, we’ve realized a few things they all have in common. Below are our top three takeaways:

Verify Domain/ Email

One of the easiest ways to setup a business is by having your own website. If your manufacturer doesn’t have their own website, this should be a red flag. Though they may have strong profiles on sourcing databases, if they don’t have their own site that links to their profile, the representative on the sourcing database could be a middleman.

In addition to having their own website, you can use tools like who.is to verify the owner of the website. This will enable you to cross check the owner of the domain with the company they are claiming to be.

Their email should also be @TheirDomain.com. Many frauds are known to use generic emails because they’re easy to setup and hard to track. A email that comes from @TheirDomain.com will be legit and is harder to hack.

Time Legal Documents

Sending over legal documents like contracts and nondisclosure agreements are a must. This will build credibility and formalize your relationship with them.

One special red flag we’ve learned over the years is when sending contracts and NDAs be sure to note their turnaround time — you’re most likely talking to a sales rep. If they can have your document signed in under five minutes you should know something fishy is up: Would you ever let your sales rep sign a contract or NDA for your whole company?

Cross Reference

Why trust one source when there are multiple? If you’ve found a manufacturer online that seems legitimate, start searching the Internet to learn more about the firm.

Check the trade shows for your industry to see if that company has attended and investigate if it is listed on manufacturing databases. If everything adds up, perhaps you have found a reliable manufacturer.

Manufacturing is one of the biggest hurdles a entrepreneur faces. With thousands of companies all claiming they can produce your product, sorting through the herd will be difficult. That is why we started Sourcify: to help you find the highest-quality manufacturers.

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