January 2009

In developing a product from an invention (see the April 2008 post) you need to find an affordable, efficient, reliable manufacturer. Mr. Ron Read (Global Consulting Partners, Inc. ) shared with us his decades of experience in helping U.S. inventors find and work with manufacturers and suppliers located in China. He also connects inventors with those located in India, Turkey, and Indonesia. Consider manufacturing in China if labor accounts for at least 20% of your manufacturing costs. The quality can be as good as you’ll find anywhere. The more you order, the better your price. For low cost items, plan on ordering at least 5,000 items/month; for items that cost $30 to manufacture, plan on at least 1,000/month. Items that cost at least $150 to manufacture can be ordered in less quantity. Savings can be considerable, with manufacturing costs often 10% of costs in the U.S. Before approaching a manufacturer, have an engineering firm prepare precise drawings of your invention, and create a final exact prototype of your invention. Chinese manufacturers need both. Respect Chinese culture. Never cause a manufacturer or supplier to lose face in front of you or their peers. Don’t necessarily interpret a “yes” response as agreement; it may just indicate a desire for harmony. Be very specific about points of agreement. Try to have manufacturing orders fulfilled before the Chinese New Year’s holiday; the plant may be understaffed after the holiday. Because personal relationships are important to business relationships, consider using a conduit like Mr. Read who knows the factory owners and suppliers. Conduct due diligence. Examine a factory you might hire. If it doesn’t allow visitors, look for another factory. Work directly with the manufacturer, not with a middle man. Consider shipping too. Shipping charges are based on weight and volume. Shipment from Hong Kong to Los Angeles typically takes 2 weeks. If your shipment would arrive during the Christmas rush, consider shipping to Seattle instead. Thanks for sharing your insights with us Mr. Read!