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GuestUser202

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Well...I didn't want to do a progress thread, because frankly, I'd rather devote my time to other things, but MAN am I EXCITED!!! I think I found my niche...MY pain point!!! That being said, I don't know how much time I am willing to devote to this thread at this time.

A little background: My first thought of my own business was to fix and flip cars and I've wanted to this for a VERY long time. I've done it the past and been relatively successful at it. But at the time of this writing, I now have TWO vehicles just sitting, waiting for parts. SO it hit me...this may not be the best fastlane strategy. Inventory sitting and cannot be sold (for profit anyway), and plus one of my vehicles is a COMPLETE money pit! This specific vehicle, I was told it needs one part to get running right. Well, it did need that one part, but it needed SO much other work in addition to that "one part". $3500 later I think I can FINALLY sell the car (we have emissions testing here so if it cannot pass emissions, car is practically worthless...or a parts car). I will still make money, but not the profit I has hoped for. This all led me to believe fix-n-flip is just too risky. Plus I also found out that you need A LOT od capital to get dealer's license.

SO...I've been looking around on this forum and it seems there are a lot of people importing from China (www.alibaba.com and such) and selling through various means. This seems like a much more stable, more viable "fastlane" way to start a business. So I thought about it for a few minutes thinking to myself, "What am I interested in?" First thing to mind was LED light bars for off-roading...these things sell for $1,000+! I Thought I had it...until I checked alibaba and the cost/piece and shipping and the market. I cannot make money with that product, and in fact, I'd end up losing money.

So then, taking the advice of Eco Man and the advice in Mr. DeMarco's book, I started thinking about what do people need? What is an evergreen product people need? What is major pain point people have? I thought about things like dishes, glasses, cookware, silverware, 800 thread count Egyptian cotton sheets, but nothing really "stood out". Plus the market seems saturated with these products anyway (too much competition). I also thought "How can I add value to these already existing products?'

I spent like a week, maybe even 2 weeks looking around my house, my yard, my slowlane job...what do people need? LED lights for the house, sunscreen, car seat covers...I checked on Craigslist to see what people need, what they are getting rid of. Nothing. Nothing said to me, "I can add value to this and sell it!" Until it happened...One Friday when leaving work, my _______ (you really didn't think I'd tell you my product, did you?) broke...again. I was like #$%^! Now I need to buy this.

I went to my usual spot to buy said product and their main display had absolutely nothing I liked. I did manage to find more of what I needed in a different location, found something I liked and bought it. I stepped out of the store and said, "I don't like this." But I'll just deal with it. About 2 days later, it hit me...what if I started a business selling this product? Not only sell it, but offer a lifetime warranty? Offer a product that you buy once and once only? This particular product has been a HUGE pain point for me personally for DECADES! I thought to myself, what if I never had to buy this again? What if I buy one that is light, comfortable and fairly inexpensive and never had to buy it again? How wonderful of an idea!!

So I had my product! Now the research. I checked on ebay and amazon and even did a Google search for my product with a lifetime warranty and it was as I expected...only a few HUGE name brand players, but the warranties were very tightly written...so much so it almost made them pointless. I checked alibaba and through researching my product, I found the exact features I want for my product.

At this point, I am in contact with SEVERAL suppliers to see if they offer what I want. Pricing and shipping is right where I expected it to be, and my margin will be so great that offering a lifetime warranty is still VERY profitable. Funny, because when I checked the biggest, most well know supplier of my product, it seems they are doing the EXACT same thing!!! My warranty and material will be different, setting me apart. One pain point for me right now is the time difference...I am asleep when they are awake and emailing me. I lose SO much sleep right now because I am SO ANXIOUS!!

So now the REAL fun begins! Once I find a supplier that offers EXACTLY what I want, I'll order a sample. From there, if demand is there, I want to brand my product, copy write/trademark it, get an LLC, and make it a viable business. I even have a company name and slogan picked out, checked the web and the domain is expired, but I can do a .net or .biz. I want to compete with the BIG DOGS!
 
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albertut77

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You go, man! Glad to read so much enthusiasm. I also lose sleep everytime I think I find something virtually profitable and have to wait for the suppliers to answer. It almost feels like anyone's gonna realize about it in a few hours time and start selling it!

I'll be checking this thread regularly. Good luck!
 
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GuestUser202

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You go, man! Glad to read so much enthusiasm. I also lose sleep everytime I think I find something virtually profitable and have to wait for the suppliers to answer. It almost feels like anyone's gonna realize about it in a few hours time and start selling it!

I'll be checking this thread regularly. Good luck!
RIGHT!!!!!!! And thanks for the encouragement!!
 

Walter Hay

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It's good to see not only your enthusiasm, but that you had the good sense to abandon a business that was not going to achieve what you want. Too many people are tempted to just hang on, hoping it will get better. That applies not only to start ups, but to established businesses that are going nowhere.

You mentioned Alibaba as the place you are looking for suppliers and I understand why. After all everyone says Alibaba is the place to go. All except me and a handful of other import specialists that is. (Oh, plus hundreds of people who have taken my advice on this subject including many Fastlaners.)

Now that you are getting started on what could be an extremely profitable enterprise that is scalable, I would hate to see you get stuck with buying from traders or wholesalers pretending to be manufacturers, which is the case with a high proportion of the suppliers on Alibaba.

May I suggest you have a look at my AMA thread and see what I have to say on the subject. One of my book users posted this on another forum: "I have contacted some manufacturers already (from links he supplies) and I am just shocked at the low prices they offer for products I am researching. Forget Alibaba, Global Resource, whatever. The Ebook shows you where to find manufacturers, how to verify their credibility etc."

It is worth remembering that profit begins with buying. If you buy from a trader or wholesaler you are immediately losing a big slice of the potential profit.
 
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albertut77

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It's good to see not only your enthusiasm, but that you had the good sense to abandon a business that was not going to achieve what you want. Too many people are tempted to just hang on, hoping it will get better. That applies not only to start ups, but to established businesses that are going nowhere.

You mentioned Alibaba as the place you are looking for suppliers and I understand why. After all everyone says Alibaba is the place to go. All except me and a handful of other import specialists that is. (Oh, plus hundreds of people who have taken my advice on this subject including many Fastlaners.)

Now that you are getting started on what could be an extremely profitable enterprise that is scalable, I would hate to see you get stuck with buying from traders or wholesalers pretending to be manufacturers, which is the case with a high proportion of the suppliers on Alibaba.

May I suggest you have a look at my AMA thread and see what I have to say on the subject. One of my book users posted this on another forum: "I have contacted some manufacturers already (from links he supplies) and I am just shocked at the low prices they offer for products I am researching. Forget Alibaba, Global Resource, whatever. The Ebook shows you where to find manufacturers, how to verify their credibility etc."

It is worth remembering that profit begins with buying. If you buy from a trader or wholesaler you are immediately losing a big slice of the potential profit.

Thanks for the info, Walter. As I am just starting and I'm planning on moving to a far, far away country in the following 6-10 months, I didn't plan on digging in too much into this before settling down in my new place. But hey, the more I learn now the better for the future.

I've started reading the book and it got me pretty hooked. However, I'm reading too many books at a time and am quite busy as well with building my own small importing business and having a full time job (I know, I know, I have to start managing my time better. I also have a book about that, haha), so I haven't gotten to this point yet. Could you explain a bit how to get to the manufacturer when you're dealing with a trader or wholesaler? I mean, I simply don't know where to start looking, how to find them.

Also, when you find the manufacturers themselves, how do you arrange the shipping? Do they deal with this as easily as these traders/wholesalers do, or should I need to have a guy do this for me?

I'm assuming this is very much profitable for high volumes of sales, but what about low volumes of middle-priced products, such as ~$70 (selling price) products in orders of x100~x200?

I may have found a very promising product that I could even brand, and I'm going to try it out buying some samples through the guy I've found in DHgate, who is probably a trader. If it works, though, getting this product straight from the manufacturer with lower prices would be an interesting increase in my benefits, which are already pretty high.

Any tips will be much appreciated. Cheers!
 

Polarbeans

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If you are going to sell on Amazon, this guy has a lot of advice: http://freedomfastlane.com/category/podcasts/

Do a search for Ryan Moran and Chris Guthrie, they both run 5-6 figure businesses on amazon. (they sell courses too though) but Ryan Moran is solid, dont know so much about Guthrie though.
 
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GuestUser202

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It's good to see not only your enthusiasm, but that you had the good sense to abandon a business that was not going to achieve what you want. Too many people are tempted to just hang on, hoping it will get better. That applies not only to start ups, but to established businesses that are going nowhere.

You mentioned Alibaba as the place you are looking for suppliers and I understand why. After all everyone says Alibaba is the place to go. All except me and a handful of other import specialists that is. (Oh, plus hundreds of people who have taken my advice on this subject including many Fastlaners.)

Now that you are getting started on what could be an extremely profitable enterprise that is scalable, I would hate to see you get stuck with buying from traders or wholesalers pretending to be manufacturers, which is the case with a high proportion of the suppliers on Alibaba.

May I suggest you have a look at my AMA thread and see what I have to say on the subject. One of my book users posted this on another forum: "I have contacted some manufacturers already (from links he supplies) and I am just shocked at the low prices they offer for products I am researching. Forget Alibaba, Global Resource, whatever. The Ebook shows you where to find manufacturers, how to verify their credibility etc."

It is worth remembering that profit begins with buying. If you buy from a trader or wholesaler you are immediately losing a big slice of the potential profit.
Thanks, Walter for the feedback and advise! I will SURELY locate your AMA thread and read through it!

Dealing with alibaba is NOT being kind to me at this point. Don't get me wrong, the suppliers are very friendly and (mostly) very responsive, but so far, no luck finding a supplier willing to send me samples of products in the material I want. I see no point in testing something I am not going to sell. Sure, they'll cater to me and make the product with the desired material IF I buy 300-500 at a time. And sure, down the line I will do this, but there is no way I'm going to order 500 immediately, NOR buy a sample order in a material I have no intensions of selling. The material is a key selling point.

I checked DHGate and searched Google for wholesale (my product) and their wholesale price is what my RETAIL price will be!! I KNOW I'm on to something now!! So DEFINITELY finding alternative suppliers is becoming more and more priority.

I also have to say I am having a hard time focusing on my Just Over Broke (J.O.B)...I seem to be on this forum or answering emails from suppliers or researching products. I'm at the point now where I don't care if they fire me. I'll take my slowlane 401k, pay 6 months rent, live off unemployment and build my business. Obviously, that is worst case scenario (even thought it sound SOOOOO freaking good).
 
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albertut77

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Thanks, Walter for the feedback and advise! I will SURELY locate your AMA thread and read through it!

Dealing with alibaba is NOT being kind to me at this point. Don't get me wrong, the suppliers are very friendly and (mostly) very responsive, but so far, no luck finding a supplier willing to send me samples of products in the material I want. I see no point in testing something I am not going to sell. Sure, they'll cater to me and make the product with the desired material IF I buy 300-500 at a time. And sure, down the line I will do this, but there is no way I'm going to order 500 immediately, NOR buy a sample order in a material I have no intensions of selling. The material is a key selling point.

I checked DHGate and searched Google for wholesale (my product) and their wholesale price is what my RETAIL price will be!! I KNOW I'm on to something now!! So DEFINITELY finding alternative suppliers is becoming more and more priority.

I also have to say I am having a hard time focusing on my Just Over Broke (J.O.B)...I seem to be on this forum or answering emails from suppliers or researching products. I'm at the point now where I don't care if they fire me. I'll take my slowlane 401k, pay 6 months rent, live off unemployment and build my business. Obviously, that is worst case scenario (even thought it sound SOOOOO freaking good).

If you have found this product exactly as you want it at the retail price that you would sell it, and don't want to make a 300-500 order because you're not sure if it will sell, why don't you try getting a small amount from these wholesellers and sell it at the same price yourself? This way, although you won't make any money, you will have an idea of its potential if you were to go serious with it.

As far as I'm concerned, and as much as I try not to follow this rule, samples are not a way of getting insta rich, but rather a way to evaluate your product and its welcoming in your market. If you lose money on samples, you'll gain in experience.

You gotta risk a bit, not every step is going to be profitable (but hey, if it is, good for you!). Just be reasonable on how much you risk according to your expectations on that product (and by expectations I mean thorough analysis of the product and the market, not just your gut!)
 
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GuestUser202

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I don't expect to get "insta rich". I really don't, not financially anyway. Time and control are more important to me.

The problem with ordering samples from other sources is price. For example, aliexpress the product is $30-45 each and on alibaba, the product is $10-15 with shipping. So for an order of 10, aliexpress is $300-450, while on alibaba, it's around $140. I am also reading your AMA as we speak so now I am concerned about shipping...if I am being quoted complete shipping from warehouse to my house.

I completely understand the need to take risks, and I am not afraid to do so (and getting better at it). But buying my product at the cost I would sell them for seems way too risky. With a much higher margin, I can lower the prices to next to nothing if I have to in order to move my product.
 

Brentnal

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I have contacted some manufacturers already (from links he supplies) and I am just shocked at the low prices they offer for products I am researching. Forget Alibaba, Global Resource, whatever. The Ebook shows you where to find manufacturers, how to verify their credibility etc.

Okay i'm searching for this holy ebook now, my money wants it.
 
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GuestUser202

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Okay i'm searching for this holy ebook now, my money wants it.
Or you could maybe search google for other wholesalers! Absolutely no offense or disrespect to Walter, but I'm sure the information provided in his ebook is available in other places. Once I finish TMF , Walters book will be on my reading list!!!!
 
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GuestUser202

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Thats fine to hahaha, a nice audi or mercedes is nice to, it does the job right?
Honestly, the only vehicle I can think that I really want is Toyota Tundra. MAYBE a Lamborghini Countach, but ehhh...Oh but the toys I'll have!!!!!!
 

Brentnal

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Or you could maybe search google for other wholesalers! Absolutely no offense or disrespect to Walter, but I'm sure the information provided in his ebook is available in other places. Once I finish TMF , Walters book will be on my reading list!!!!

If the ebook isn't more than 12 dollars i will get it, i truly believe there is alot of good sh*t in his book. What is 12 dollar? I got alot more where that is coming from :p
Gonna start my own progress thread soon, but i first want to take some action before i start the progress thread.
 

Walter Hay

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Thanks for the info, Walter. As I am just starting and I'm planning on moving to a far, far away country in the following 6-10 months, I didn't plan on digging in too much into this before settling down in my new place. But hey, the more I learn now the better for the future.

I've started reading the book and it got me pretty hooked. However, I'm reading too many books at a time and am quite busy as well with building my own small importing business and having a full time job (I know, I know, I have to start managing my time better. I also have a book about that, haha), so I haven't gotten to this point yet. 1 Could you explain a bit how to get to the manufacturer when you're dealing with a trader or wholesaler? I mean, I simply don't know where to start looking, how to find them.

2Also, when you find the manufacturers themselves, how do you arrange the shipping? Do they deal with this as easily as these traders/wholesalers do, or should I need to have a guy do this for me?

3 I'm assuming this is very much profitable for high volumes of sales, but what about low volumes of middle-priced products, such as ~$70 (selling price) products in orders of x100~x200?

I may have found a very promising product that I could even brand, and I'm going to try it out buying some samples through the guy I've found in 4 DHgate, who is probably a trader. If it works, though, getting this product straight from the manufacturer with lower prices would be an interesting increase in my benefits, which are already pretty high.

Any tips will be much appreciated. Cheers!
With so many replies, some covering similar ground, I will answer one by one to make sure I don't miss anything.

1. It is better to find the manufacturer to start with, but if you find a trader, PM the details to me and I will reply with the manufacturer's contact details. I can't do this for everyone, but I don't want to see you get started in the wrong direction.
2. It is best to ask the manufacturer to quote you a price including shipping. It is customary for all suppliers to quote FOB, but usually that is only appropriate for larger orders. You will probably need door to door air courier delivery for a small order. The cost will shock you, but if you are buying direct from a manufacturer at the right price the margin will more than cover it.
3. For orders in that range it is probably worth finding a freight forwarder in your area and getting a quote for door to door delivery after you get a quote FOB or EXW (Ex Works). Depending on size and weight it might travel by air courier, or air freight (there is a difference). All freight quotes must be all-inclusive, including Customs Clearance work.
4. If you find them on DHGate, they will almost certainly be a trader as is the case with most suppliers on Alibaba.

Walter
 
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Brentnal

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Or you could maybe search google for other wholesalers! Absolutely no offense or disrespect to Walter, but I'm sure the information provided in his ebook is available in other places. Once I finish TMF , Walters book will be on my reading list!!!!

The book is 97 dollar :eek:... maybe some other time i'll get it
 

Walter Hay

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Thanks, Walter for the feedback and advise! I will SURELY locate your AMA thread and read through it!

Dealing with alibaba is NOT being kind to me at this point. Don't get me wrong, the suppliers are very friendly and (mostly) very responsive, but so far, no luck finding a supplier willing to send me samples of products in the material I want. I see no point in testing something I am not going to sell. Sure, they'll cater to me and make the product with the desired material IF I buy 300-500 at a time. And sure, down the line I will do this, but there is no way I'm going to order 500 immediately, NOR buy a sample order in a material I have no intensions of selling. The material is a key selling point.

I checked DHGate and searched Google for wholesale (my product) and their wholesale price is what my RETAIL price will be!! I KNOW I'm on to something now!! So DEFINITELY finding alternative suppliers is becoming more and more priority.

I also have to say I am having a hard time focusing on my Just Over Broke (J.O.B)...I seem to be on this forum or answering emails from suppliers or researching products. I'm at the point now where I don't care if they fire me. I'll take my slowlane 401k, pay 6 months rent, live off unemployment and build my business. Obviously, that is worst case scenario (even thought it sound SOOOOO freaking good).
They won't do anything special for you if they are traders because they have to convince a manufacturer to do it for them.

You need to find the manufacturer straight off. See my reply to albertut77 above.
 

Walter Hay

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I don't expect to get "insta rich". I really don't, not financially anyway. Time and control are more important to me.

The problem with ordering samples from other sources is price. For example, aliexpress the product is $30-45 each and on alibaba, the product is $10-15 with shipping. So for an order of 10, aliexpress is $300-450, while on alibaba, it's around $140. I am also reading your AMA as we speak so now I am concerned about shipping...if I am being quoted complete shipping from warehouse to my house.

I completely understand the need to take risks, and I am not afraid to do so (and getting better at it). But buying my product at the cost I would sell them for seems way too risky. With a much higher margin, I can lower the prices to next to nothing if I have to in order to move my product.
Although I see albertut77's point in testing the market with samples bought locally, I would not do that myself. If you persevere and find the manufacturer you can do that market testing while at the same time testing the supplier.

Shipping cost for a sample or a few samples could range from $40 to $100 depending on size and weight. This could mean that your initial purchase may not make you much profit.
 
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Walter Hay

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Okay i'm searching for this holy ebook now, my money wants it.
Well I see you have found it. Yes you are right, the price is $97, but I have a paid support team with a core group that I have trained in sourcing and importing.

Those testimonials you will have seen on my website are genuine. I have hundreds more that I don't publish. I am unusual in that I publicly offer to provide proof of authenticity to the FTC or to fair trading authorities in other countries on demand.
 
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GuestUser202

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Although I see albertut77's point in testing the market with samples bought locally, I would not do that myself. If you persevere and find the manufacturer you can do that market testing while at the same time testing the supplier.

Shipping cost for a sample or a few samples could range from $40 to $100 depending on size and weight. This could mean that your initial purchase may not make you much profit.
Right, I am fully prepared for that. I also won't be be offering my warranty until I brand the product. Once all that is in place, then I increase the price accordingly.

I'm still reading your AMA post (currently 11pages long) and I'm learning A LOT! Thanks so much for the post! I will absolutely keep persevering!
 
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GuestUser202

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So I just spent about an hour talking to an alibaba supplier on Skype. Based of Walter's AMA thread and what he experienced, this is a wholesaler, not the manufacturer, but I am ok with that for now.

The conversation was half causal/personal talk and half business...just building a relationship like is mentioned so often, pretty much everywhere. I was able to see a little of the product and see a little how it performs. I was amazed at the product "demo"! FAR meets my expeditions!! This is probably the 10th supplier I contacted, and the only one that really seemed to want my business. I had one supplier just send me a :). REALLY??

The rep started asking business specific questions: what is your main business? Have I ever bought _____ from China before? Where have I bought _____ before? I didn't want to lie, so I was completely honest...down to telling her I am just starting out, but I see a need for _____. She was quite ok with that!!

During our conversation, the rep said I could get BOTH materials in my sample!! This way, I can test both! Haha!! Price is higher for the sample order, which is expected. However, the rep said I'll get half the sample price back with my first "larger" order. I'll make sure to get that in writing. REALLY getting excited now!!!!!!!

The next step is visiting their website, ensuring its a reputable company...and picking out my samples!!!! I'll let you know how this next step goes!
 
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G

GuestUser202

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I may have a 2nd supplier (alibaba) with the material in stock to send me a sample. This 2nd supplier is communicating via email only at this time. But it's better than no communication!
 
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GuestUser202

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Found another supplier and OH MY GOSH! I am over FREAKING whelmed at their product list! Again, a trader (I think), but at this point, still ok with it! Again, communicating via Skype and email. This is getting quite addicting!!!
 

Walter Hay

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So I just spent about an hour talking to an alibaba supplier on Skype. Based of Walter's AMA thread and what he experienced, this is a wholesaler, not the manufacturer, but I am ok with that for now.

The conversation was half causal/personal talk and half business...just building a relationship like is mentioned so often, pretty much everywhere. I was able to see a little of the product and see a little how it performs. I was amazed at the product "demo"! FAR meets my expeditions!! This is probably the 10th supplier I contacted, and the only one that really seemed to want my business. I had one supplier just send me a :). REALLY??

The rep started asking business specific questions: what is your main business? Have I ever bought _____ from China before? Where have I bought _____ before? I didn't want to lie, so I was completely honest...down to telling her I am just starting out, but I see a need for _____. She was quite ok with that!!

During our conversation, the rep said I could get BOTH materials in my sample!! This way, I can test both! Haha!! Price is higher for the sample order, which is expected. However, the rep said I'll get half the sample price back with my first "larger" order. I'll make sure to get that in writing. REALLY getting excited now!!!!!!!

The next step is visiting their website, ensuring its a reputable company...and picking out my samples!!!! I'll let you know how this next step goes!
This sounds like great progress. Good for you.

Appearances and also perceptions from conversations can be deceptive. To get that kind of cooperation you just might have hit on the real manufacturer. I hope so. I will be happy to check for you if you PM their name to me. Websites can be extremely deceptive, so don't just rely on what you see there. If it is a .cn site, make sure they show an ICP number, usually near the bottom of the page.
 
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GuestUser202

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This sounds like great progress. Good for you.

Appearances and also perceptions from conversations can be deceptive. To get that kind of cooperation you just might have hit on the real manufacturer. I hope so. I will be happy to check for you if you PM their name to me. Websites can be extremely deceptive, so don't just rely on what you see there. If it is a .cn site, make sure they show an ICP number, usually near the bottom of the page.
I will check in he morning and PM you. I am currently speaking to a 3rd supplier claiming to be the factory so I'll research tomorrow and let you know. I kind of want to do this on my own, and maybe just double check my findings with you, Walter.
 

Walter Hay

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I will check in he morning and PM you. I am currently speaking to a 3rd supplier claiming to be the factory so I'll research tomorrow and let you know. I kind of want to do this on my own, and maybe just double check my findings with you, Walter.
That's great. A good education for you.
 

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