How to Manufacture a New Product Overseas
November 28, 2007
Our Fabulous Fairy Godmother Heather Allard is Founder of Swaddleaze and 2 Virtues and is now a consultant for women entrepreneurs at The Mogul Mom.
Are you completely overwhelmed by the thought of finding an overseas manufacturer?
I was too and that’s why I initially had my product, Swaddleaze, manufactured here in the United States, a decision that cost me thousands and thousands of dollars and nearly sunk my business in the first year.After searching through a gigantic apparel manufacturers directory, I found a mill that specialized in children’s apparel. They quoted me a “cut and sew” price that seemed fair and I contracted them to produce my first run of Swaddleaze.
What I didn’t realize was that I then had to source all the materials for my product and have the goods shipped to the manufacturer before they could begin production. I spent hours researching U.S. companies that made textiles, zippers, packaging, labels and more.I then purchased thousands of dollars of fabric, zippers, Velcro, interior labels, hangtags, packaging, inserts and price stickers and had everything trucked down south. The shipping cost was sometimes more than the cost of materials! My credit cards were practically melting and I had just begun this venture.When the manufacturer had finally finished the production run and had shipped the goods to me, each piece ended up costing $15.85! I had no idea how I would ever turn a profit at this rate. After selling through this initial run and almost going under, I made the decision to find an overseas manufacturer, no matter how daunting that task was.It took me about six months and a ton of “Googling” before I found an overseas manufacturer that was perfect for my needs. So how do you go about finding a manufacturer overseas that’s right for your business?
Here are the steps that will make that process faster, easier and less scary for you.
1. Before contacting overseas manufacturers, take the time to familiarize yourself with the terminology with this indispensable dictionary of trade, shipping and export terms at ExportBureau.com. This will help you feel confident when speaking to foreign manufacturers and will let them know that you’ve done your research. Some of the most common terms are:
Lead time this is the time between placing an order with a manufacturer and when the order is delivered.
Minimums how many pieces of a particular item you have to order. Usually, the more you order, the more affordable the price is.
Terms this usually means how and when the manufacturer will be paid (T/T, wire transfer, net 30 days, etc).
T/T this means that you wire transfer half the amount of the order before the manufacturer begins work and the other half at completion. The manufacturer will give their wiring instructions.
2. Ask around if you know other women who make products, ask them who their manufacturer is and then contact that company about pricing. Be sure to mention who referred you, as this will often get you a speedier reply. (If any of you are looking for a great apparel manufacturer, I’d be happy to refer you to mine. Contact me for more information.)
3. Use Alibaba.com, a global trade website that puts products, suppliers and buyers in touch with each other. Some Chinese suppliers are labeled “Gold Suppliers” which distinguishes them as premium, reputable suppliers. They are required to meet stringent criteria before becoming a Gold Supplier and are usually a safe bet. Once you’ve found a handful of manufacturers, contact them for pricing, terms, lead time and minimums. If possible, look for a manufacturer that will provide you with a complete package (also called FOB package). This means that the manufacturer will source all materials, produce the goods, package the goods, pack the goods, ship the goods and arrange for customs clearance and receipt of goods here in the U.S. and finally, have the goods trucked to you or your fulfillment center.
4. Compare pricing and service and then request samples. If there are any safety guidelines for your product, you must provide the manufacturer with those guidelines/criteria. Most overseas manufacturers are not familiar with US safety regulations set forth by the CPSC. Refer to CPSC.gov for more information. If you’re unsure about your product safety requirements, you can email a CPSC employee and they will assist you.
5. Once you’ve reviewed all samples and compared pricing, choose the manufacturer that’s right for your product or business and begin the production process.
Then, breathe a big sigh of relief because YOU DID IT!If you follow these steps, you’ll find out the same thing I did that manufacturing overseas isn’t so scary or overwhelming after all. It’s an exciting step that can often be the beginning of big success for you and your company.
This article is what I’ve been looking for!!! My start-up is looking to do this in the near future, I hope, and it is a scary and tiresome task. But I feel to grow my product that this may be the step I need to take to grow to the next level. What great information@!
Thanks, Rickina…I’m glad it helped! Have a great night!
Heather
Hi Everyone,
I just wanted to share my BLOG address with you–I offer even MORE info here.
Just visit http://themogulmom.blogspot.com.
Thanks!
Heather Allard
The Mogul Mom
Thank you for sharing your experience. I did source an overseas manufacturer for a sandal that I sold on HSN. I was deastated by the quality of the product shipped. It was a trumatic experience, to say the least.
Anyway, I would be very interested in recomendations for an overseas apparel manufaturer for women’s and children’s clothing.
Again thank you for sharing…
Kristen
Hi Kristen,
You’re quite welcome.
Though the cost to have prototypes and samples shipped from overseas may be high, it’s imperative that you actually SEE and approve the product before it goes into production.
If you are interested in women’s and children’s apparel resources, please visit my site at http://www.TheMogulMom.com/services.html where you can purchase an hour or two of my Coaching by Email program.
Thanks again! Have a great weekend.
Heather Allard
The Mogul Mom
I have a product that I want to have a prototype made.This is a common everyday item but done with a twist.What is my first 5 steps?
Lori,
Congratulations on your product idea. It’s difficult for me to say what your first five steps should be without knowing more about it. I offer a great “Coaching by Email” program that would give you more personalized information. Check out my website for more details.
Thanks,
Heather
This is ALL great information. Too bad I found it far too late. I did business with a company called Import Traders, Inc. and experienced a disaster. Do yourself a favor, be EXTREMELY careful about the company or agent you consider using and by all means avoid being sunk by:
1) not being too anxious to just go with anyone because they tell you that *they* can do it!
2) NEVER pay anything upfront or use a company that expects you to wire anything without a formal contract that has legal ground in *YOUR* state.
3) Steer clear of companies like ITI (Import Traders, Inc.) that breech the agreement and still hold you accountable for additional expenses that were never agreed to nor in the contract. So, make sure EVERYTHING right down to the ship to location and cost is considered BEFORE putting your signature on any contract. I did all of this and my experience was still a nightmare because the company failed me by making a defective product two months beyond the expected date, then they wanted me to pay for their shipping error and to top it off, breeched our agreement and still wanted more money from me beyond what was already paid.
Talk to other people, listen to our fabulous fairy Godmother Heather Allard, she knows what she’s doing because I too went down this path and have only just recently been able to say (after learning the hard way) that I’ve since become a success at this process.
Hi there,
I would love some help, i have a product plan drawn up but dont know where to begin. I dont even know if i need a sample made before i go any further or a plan on paper should be enough.Than i have no idea how to get my product produced.Im thinking of shore wold be cheaper than having it made here in Australia.
Could you please help me get my idea off the ground
Kind regards
Julie
Hello Julie and others who wish to manufacture,
I would recommend that before you get to manufacturing you have a prototype made and test, test, test your concept and get feedback, etc. Then when you’re ready talk with someone like Heather Allard who has gone through the stages and/or get pricing from different companies who you trust. One I recommend is Vox Promotions in Utah (who will work with people worldwide) http://www.voxpromotions.com they do 60 containers a month, have 39 employees and are in high volume as well as small scale manufacturing of anything overseas they have offices in China and Vietnam also. Aaron Scott is my contact there but I also know the owner, Kip Rollins well and they are high quality, high standards people!
Hi,
As I’ve done market research on my product, I’ve found that there are a few competitor who make similar products to mine. While I suppose mine is still a big improvement over the competition I still want to know how do I find out who manufacturers their products, so that I can take advantage of their leg work & potentially use them or at least price my competitor?
I am starting from the beginning. Can anyone help me with the step by step process? Who makes the prototype?
I know how to get a business license & patent. You have give me an address for
Terri wrote:
“I am starting from the beginning. Can anyone help me with the step by step process? Who makes the prototype?”
Every product type is different. A note to anyone posting these sorts of queries, be specific so others can advise you better. I only know about sewn products, having worked in garment manufacturing for nearly thirty years.
In apparel, you can work it several ways. First, do you want to produce domestically or do you want to go offshore? If your product is detailed and you want small quantities quickly, it may be best to do it in the US. If it’s a product in a highly competitive market (highly price sensitive) and you want lots of them, maybe offshore is better. If you can sew, see how close you can get to a concept on your own. Your goal is a crude rendition of your idea. Alternatively, if you can generate good technical drawings, that is another option. Either way, domestic or offshore, the better information you can provide to a “manufacturer”, the better.
If you can’t sew or don’t want to and you want to go offshore, you must have a “tech pack”. Also called a technical specifications package, this constitutes a legal contract of deliverables for your product. You can have one made by a pattern maker (an archaic job title for a product design engineer in the apparel industry) or a technical designer. Btw, if the tech designer was not trained or worked as a pattern maker for years, don’t waste your money.
If you want more control over the project, you can also provide a prototype instead. This means to your next step is to hire a pattern maker. I know that some people have used home sewing patterns but this can be a grave error. Other than that it’s illegal, you are not protected. Iow, if you used intellectual property that does not belong to you, you don’t have a legal leg to stand on if someone steals your product and copies it. If you have someone to make a pattern for you (work for hire), you own the copyright. A lot of green entrepreneurs run around trying to get patents, spending years and thousands of dollars but a simple copyright on your pattern is nearly always sufficient. If you need a pattern maker, there’s links to some on my site.
Services vary; some pattern makers will make prototype iterations either in house or they’ll get a sample maker or refer you to one they’ve used and like. After that, having developed a good relationship with a pattern maker, they will refer you to a contractor who can make test samples. This is your production test run so you will see if there’s any problems and get a good idea what your costs will be as well as the amount of needed materials. Once you have samples, well, it’s time to flog it and get some orders. Once you have orders, you hire the contractor to produce them. Of course there’s a lot more to it but this is the skeleton of the process.
This site is a Heaven Send! God bless all who are involved with making this possible. I’m in the StartUp phase of my new business and finding this site was a true blessing.
After helping many companies to produce their products overseas, I opted to produce my line here in the states.
I had to ask myself…what is my business all about…and is producing overseas a choice I can live with??
Turns out, it’s not. I think it’s important to consider the effects of producing items overseas…effects that are less obvious than the dollar expense, potential profit and ease. We have to start asking ourselves what the ramifications are…to our economy, and also…maybe even more importantly, to our environment.
Hi Susy,
You’re right–you have to ask yourself that question. And MANY others. I initially had my products manufactured here in the US and felt GREAT about that decision. The company I used, Rice Mills, has since gone out of business, as have many US manufacturers. But, I nearly sank my family into inescapable debt.
Unfortunately, if you are a typical mom entrepreneur with limited financial resources, domestic manufacturing is extremely time consuming, expensive and frustrating.
While it’s noble to try to make choices based on the impact on our economy, most of us don’t have the business or the financial means to keep U.S. companies afloat. And we can certainly help our environment (both locally & globally) by making wise manufacturing choices, choosing organic fabrics, sustainable materials, eco-conscious packaging and more.
You raised a great point–thank you! We can all spend a bit more time weighing the pros & cons of our manufacturing decisions and how those decisions affect our businesses, our economy, our environment and our lives.
Sincerely,
Heather Allard
The Mogul Mom
http://www.TheMogulMom.com
This website was heaven sent and so are you! Thank you for taking the time to advise us. I have 2 questions, should I prototype here and manufacture overseas or do both overseas. And is my design protected overseas if I have a design patent pending here. My design is plastic.
Thanks so much!
Debbie
I just a have question and stumbled across your website. I started my own business ten years ago (after 17 years at a large footwear company) and I have manufactured my own shoes and apparel in in China, Korea and now Indonesia.
Over these past few years I have seen people get absolutely fleeced by “middle men” and factories. I have helped out a number of people and let them use my contacts to get a good price on all materials. This helps me out at the factories since I get them business and these people instantly have real honest contacts in Asia.
I just did a line of shoes for a woman for QVC and probably saved her over $50,000.00.
My question: Are there more people who are trying to get started manufacturing overseas and need help? I know unless I had contacts I trusted from my previous years it would have been difficult.
I would be very interested hearing your view of this subject.
Thanks,
Billy Threadgold
http://www.disciplinefootwear.com
Help!!!! I need help so badly! I don’t know if this is proper and I apologize if I am out of turn however, I have many inventions that I have been seeking help with and I am at a loss. I am a disabled mother and I have lost everything, I am looking to find a partner or mentor that would be willing to use me to make money. I need to get my ideas to market and have little or no resources available except my ideas. I just need help and I am willing to partner up and split 50/50 or whatever it takes to make things happen. I really need to provide a home and medical coverage for my family and I know that I can if I could just get some help. If you have any thoughts or know where I might turn please let me know. Thank you for your time and the opportunity to write this.
To whom this may concern;
My name is Polina Misheyeb and I live in Canada, I am interested in producing an idea that I have.
I have done some research and also put some work into this idea.
What I am looking for at this point is a manufacturer that is able to make my prototype and sign privacy contract stating that this product can only be made for me.
My product is a baby bottle and has a few specifics; I wanted to know if I am in the right direction by contacting you.
I am interested in this product passing Canadian and American standards and making the product super healthy for babies. This means it would have to be free of Lead, PVC and much more.
Can you help me?
Sincerely
Polina Misheyeb
I am an apparel patternmaker that loves working with new ideas and designs.
I worked in the industry for 30 years with many company hired designers, but going free lance has been so much fun. Most of my business is with designers who have a great design and want to see it developed.
With the first pattern I send a fit/design approval sample so you can see your idea “come to life”. After approval I can then grade the pattern into your chosen size range.
I helped Heather develop her now famous Swaddleaze. I also have good Hong Kong and mainland China contacts for sourcing and manufacturing. If I can be of help to anyone, please contact me.
I was working with a factor in China who has not been responsive lately. They have only made prototypes for me, however they are not responding tomy e-mails. Can you share your contact person with me? I am interested in making some infants/toddler items?
I found your information very helpful!!!
Thanks!
I want to know how much it will cost me to get a shoe that i designed manufactured, and where can i get this done ?
I am so glad i ran across this website. I am currently in the process of starting my own clothing line and have found this information very helpful. i have been searching on- line for an overseas manufactoring but it has been very difficult and would really appreciate if someone would refer me to several credible ones. I am a mother of 4 and have been very encouraged by the pouring out of information from this website. Thank You!!
This post and the follow-up comments are really helpful to me. Thanks for sharing your experience and recommendations.
I am so excited to see all these women with a great idea just waiting to be born! I lead a 26 week tele-seminar (on the phone) that will teach you every single step you need to research, prototype, manufacture and sell your product idea. Check out my website and sign up to receive my Ezine and listen to our FREE calls once a month.
Sarah
Thanks for sharing your info. It gives those of us with hopes and dreams of being business owners courage to move forward!!!!!!!!!!!!!!! Best of luck!!!!!!!!!!!
Hi, I have a new idea and don’t know where to start. Is it better to find a manufacturer first and have them make samples for you before going to stores/companies and introduce your products? or is it better to do the opposite way? Thanks, Mary
hi
am a single mom of 2 girls and am trying to make something to call my own.
the only problem is that i need information how to start up my own invention
with getting my invetion idea stolen from me.
If you can be so kind of helping through i would appreciate it alot
thanks
levinia
Levinia,
If you want to protect your invention then I suggest you see a patent attorney and get a patent. Obviously I don’t know what it is and if it is patentable – but the only way to guarantee it’s “safety” if to file a utility patent. If you don’t feel it is a patentable item and you are not sure how to proceed with making a prototype, manufacturing, selling, and marketing – I can offer you my coaching expertise. Sign up for my free weekly Ezine – you will get a lot of free info and I even have an Ask the Entreprenette column every week. Hope to see you there. Good luck. If you need a good patent attorney I can recommend one to you. Sarah