How to find a manufacturer

Write a spec sheet, send it to three factories, ask each the same seven questions, and pay for a sample before you pay for a run.

Where to look

• Thomasnet lists North American manufacturers by process.
• Alibaba and Global Sources list overseas suppliers. On Alibaba, use Trade Assurance for a first order.
• Sourcing trade shows, such as the Canton Fair, put many factories in one hall.
• Non-competing brands in a nearby category can tell you who makes theirs.

Near or far

A nearby factory usually costs more per unit, and is quicker and easier to visit and correct. An overseas factory usually wins on unit price at volume, and you pay in lead time, minimums, freight and duties. Many first-timers stay close while the design is still changing. Get quotes from both and compare the landed cost.

Prepare the spec sheet

Drawings or a CAD file, materials, dimensions and tolerances, colors and finishes, packaging, target quantity and delivery date. A vague inquiry gets a vague quote.

The seven questions

1. Unit cost at three quantities.
2. Tooling cost, and who owns the tooling. It should be you, in writing.
3. Minimum order.
4. Sample cost and lead time.
5. Production lead time from deposit.
6. Payment terms.
7. What counts as a defect, the acceptable rate, and what happens to rejects.

Check them

Video-call the floor. A company that will not show one may be a trading company, which is fine if you know it. Ask for its business license and for customers you can call. Pay for a sample, and for another after every change. Never approve a run from a rendering. A third-party inspector such as QIMA or SGS can check the first run before it ships.

Paying

Get the terms in writing, pay a company invoice into a company account, and never pay in full up front. Try to tie the final payment to a passed inspection.

If the quotes are out of reach

Add tooling, the minimum order, packaging, freight, duties and any required testing, and you have the real price of a first run. If you cannot fund that, a license puts the cost on the company.