Do you want to launch your own private label or custom designed products?
Coming up with a new idea for a product can be exciting, especially when you know it’s a concept that consumers will appreciate.
The only problem is, we often get lost in the conceptual stages of product design. When we start to move into sourcing a factory, product development, and building a brand, we lose focus.
Stop Conceptualizing and Start Producing
Once your great idea hits you, it can be easy to get caught up deciding what your logo will look like, what your marketing strategy should include, and who will design your website for you.
The problem is, if you focus on all of this before you know where your brilliant idea is going to be made, you aren’t going to get very far.
If you truly want to build a brand with a new product idea, the first thing you need to do to get out of the concept phase and into the selling phase, is to find the right manufacturer.
So, before you spend too much time hiring graphic and web designers to plan your “look,” make sure you have a product to sell that’s sourced from a quality factory.
There are some excellent resources available today that can make this part of your new venture much easier than you think. One such resource is Sourcify.
Have You Considered Product Sourcing in China?
Despite what you occasionally hear on the news about current Chinese manufacturing problems, sourcing in China can be an excellent way to bring your concept to life. If you hadn’t thought about this avenue before, here are some reasons to think about it now.
China Manufacturers Are More Willing to Do Business with Start-ups and Small Companies
If you have a chance to talk to others who already have products made in China, most of them will tell you that the Chinese are usually more agreeable when approached with a business deal.
If you are just starting up, this can be especially beneficial since the initial quantities you’ll be needing may be lower than many US manufacturers are willing to negotiate for. As start-up entrepreneur Nathan Resnick stated in his article Three Reasons Why You Should Manufacture in China, “… you can’t take for granted that just because you’re willing to pay for goods, someone is willing to make them for you.”
Lower Manufacturing Costs
It’s always a good idea to do the math to see whether manufacturing overseas or domestically will be the better bargain. Provided you have found a company in the US who is actually willing to work with you.
Most of the time though, you’ll probably find that even after you add up the extras like shipping and import fees, it will still be much less expensive to source in China.
Chinese manufacturers are very good at building products that are reformulations of existing products. In fact, if your big idea is an upgrade of another product but better, you may even be able to work with the manufacturer of the other product. This will make the initialization of your idea even easier.
A good example of this comes from a case study when a premium innovator of action sports accessories decided to expand their product line with an idea based on the improvement of some products already on the market. After the concept info was sent to the Sourcify team, they were able to start making introductions between the company and potential manufacturers in less than a week. During these introductions, it was discovered that one of the manufacturers were, in fact, the same manufacturer that produced the other product the company was looking to innovate.
In the end, using the same manufacturer of the original product saved the company money since they didn’t have to create their own mold from scratch.
Learn more about Lume Cube and how they increased their profits using the right manufacturer by reading the case study.
Many Chinese Brands and Manufacturers Have Radically Upgraded the Quality of Their Products
According to a report from Forbes, “a revolution in consumer sentiment has spread across China. “Made in China” no longer inherently means cheap, inferior, and unfashionable.”
Where only a few years ago, the Chinese people themselves were more inclined to purchase imported goods, there is a new movement to purchase “Made in China” more and more.
The movement has largely been the result of China’s manufacturers moving away from their initial niche of “filling the world’s markets with low-cost products.” Instead, they are working to build high-quality, sophisticated products.
As this change has increased in momentum, international markets have adjusted their attitudes to “Made in China” labels accordingly.
A Few Things to Be Prepared For
Like most business ventures, there are going to be some cons to keep in the back of your mind. When considering sourcing from China, here are some items you will want to be prepared for.
Learn to Ignore the Stigma
There will always be die-hard Patriots that will try to give you a hard time about outsourcing overseas, and a Made in China label may open you up to a little bit of criticism.
If you find these occasional negative comments start to bother you, remember that you are not alone. Also remember that most of the time people choose to save money, just like you did.
Pre-plan to Get Product Production Right the First Time
As with everything else in life, things can go wrong when sourcing in China. In order to avoid these hassles, you need to provide your manufacturer with extremely detailed, crystal clear instructions with thorough product specifications.
Otherwise, you may end up with your not quite right products lining the shelves of Dollar Trees across the country.
Have a Back-up Plan for Rapid Changes in International Relations
Economic and Political relationships with other countries can have an unpredictable effect on agreements with the manufacturer when sourcing in China. Greg Shugar relates an experience he had during the recent “Great Recession” that affected many companies worldwide.
“…we got unexpected price hikes that were caused by anything from currency exchange to the cost of oil. In fact, one year, the Chinese government actually mandated that prices be raised by factories! I remember talking to colleagues and, yes, we all got unexpectedly nailed for these increases.”
Think You are Ready to Make Your Concept a Reality? Try Sourcify
When it comes to finding the right manufacturer for your product, you don’t have to go about it alone. Sourcify helps companies bring products to life faster. What takes sourcing agents a month, often takes their resources a week or less.
A major problem that many entrepreneurs face is not know how to turn an idea into a physical product. Many will attempt to find the right manufacturer using open databases.
A problem often faced when using open databases is that most of the factories you contact don’t return your calls. And, if they do, they may not be equipped to handle the type of production you need.
Sourcify has a carefully cultivated database of their own, with pre-vetted manufacturers. They will work to help you reduce unit costs by working directly with the factories.
Their project management software simplifies contact with the manufacturer, and their platform covers all your needs from first samples to finished production runs. They work with their own hand-picked team in Asia to maintain strong relationships with manufacturing factories.
Just getting started on your first product idea? Some manufacturers have higher minimum order quantities. However, Sourcify’s database of manufacturers includes those willing to handle nearly any sized order.
Remember the case study mentioned above? One of their “manufacturing hacks” is to match you with a manufacturer that already has a similar (or the same) mold.
By using Sourcify, the company in the case study was able to put extra attention on growing their brand instead of spending time working to grow a manufacturing relationship just to find the right fit.
Building a Brand
Whether you’re working with domestic or international factories, building your brand should be your top priority as a business.
With the right design, content, and marketing, you can target consumers in a way that’s memorable and impactful. Your brand means everything to your long-term success.
Building a brand with products made in China can take some of the product related factors off your chest. When you’re working with a factory that gives you a fair price, great service, and a quality product, you can focus your effort in the areas it matters. Build a thriving business and spend your time growing it.