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- Aug 24, 2015
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Hi @biophase - first of all, I want to thank you for all the value you have provided this forum and for people like me who are just starting out. I've been really inspired by your ecommerce journey and am trying to build my own ecommerce / Amazon business using what you've done before as guidance.
I am running into a problem which I was hoping you could provide your thoughts on.
My situation is the I agreed to a production order price quote with my manufacturer a few weeks ago. This price quote includes the mold fee that I would need to pay for. I am currently now trying to get them to make a sample for me where they would use the new mold. They said that I would need to pay a couple hundred dollars for the mold fee and I am OK with this. The problem is that since the original quote already includes this mold fee, I would essentially be paying twice for this mold fee if I have to pay for it upfront now to get the sample made and again later when I pay for the production order.
I asked them to deduct the price of the mold fee from the production order since I'm essentially prepaying for it. What they came back with is that they will refund the mold fee after I've placed x number of units. "x" is a very large number of units and could take a couple of years to reach in the best case scenario. I don't even know if they will honor it at that point.
The other option they offered is that they can make the sample by hand (not using a new mold) and they won't charge the mold fee. The problem with this is that I think this defeats the whole purpose of ordering a sample if I can't see the updated final product with the new molded components in place.
What this manufacturer is trying to do does not seem right to me. I feel like they are taking an opportunity to charge me a few hundred dollars just because they can.
Am I looking at this correctly? Or is it that there's a lot of work involved in changing out the mold and their extra fee is justified? Have you dealt with something like this before and what you advise that I do? Or should I get a sample manually made not using a mold? I feel like we are pretty close to making a deal work so part of me doesn't want to jeopardize the deal after months of hard work and think that I should just agree to their terms and not expect to ever see that money back again. Any help is much appreciated.
PS - If I had joined INSIDERS just a few months sooner, I would have definitely signed up for your coaching. I think it would have been so valuable.
Tell them you are not going to pay the mold fee twice.
Tell them you order $XXXX from China every month and that every other supplier you have ever dealt with only charged you once to make a mold.
You need to stand your ground.
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