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Finding the manufacturer of a certain product

Discussion in 'Product Creation, Inventing, Importing, Sourcing' started by LPPC, Nov 26, 2018.

  1. LPPC
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    LPPC Bronze Contributor

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    Hello fellow fastlaners,

    I hope everyone is doing well here.

    I myself am searching for an ideal supplier (in China) of a certain product. Ideal means that I want to find a real manufacturer of the product. This would have advantages like being more sure of continues supply and lower price.

    I have found some suppliers on Alibaba and other sites that are verified by inspection companies to have production capacity. The inspection reports do not state that they produce or have the machinery to produce this particular product.

    There are some suppliers with verified production capacity (in general, not for this particular product) and who even tell me that they are the manufacturers of this particular product, but their prices are not or not significantly lower than the prices the traders are offering me. This tells me that they might not be the real manufacturers, or else they could offer me lower prices than the traders.

    Or maybe their prices are as high because my order quantity is only 100-150 pieces? Still, the prices of manufacturer should be lower even then.

    Some did offer to customize the product if I ordered 1000 pieces, but I think they can also have another manufacturer supply the customized product? Or is it likely because of this customizing offer that they are the manufacturer?

    So my questions are, how do I go about finding a real manufacturer (who lets me order 100-150 pieces per order for a lower price than the traders)?

    Why are the prices of all the suppliers with general production capacity the same or even sometimes higher than the traders? Maybe none of them are manufacturers of this particular product? If so, how would I find the manufacturer that supplies these traders?

    Looking forward to your input.

    Thank you!
     
    Last edited: Nov 26, 2018
  2. Walter Hay
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    Walter Hay Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    I have on a number of occasions posted in my AMA that it is practically impossible to locate the actual manufacturer of a specific product.

    In this post GOLD! - Sharing my lifetime experience in export/import. Product sourcing specialist. in my AMA I suggested using Google images, but the problem will still remain that it will be hard to tell if a company whose name is attached to an exact image of the product you want is indeed the manufacturer.

    You will need to go through the due diligence processes I describe in my book.

    An alternative approach is to find a supplier for the product, or something similar, confirm that they really are manufacturers, and then find out if they can or will manufacture that product for you.

    If a manufacturer advertises on a B2B site, their published MOQ will often be more than a trader's, but you can negotiate. Traders, on the other hand, will rarely negotiate smaller quantities for the simple reason that they very often have no stock, and don't even have any prior arrangement with the manufacturer.

    They take your order and deposit and then order from the supplier in the hope that they can buy the quantity they have stated as their MOQ, at a price that gives them a profit.

    It's not a good idea in your first contact, to request a small quantity. You need to follow the procedure I recommend in my book. That way you can almost always get them to agree to your small order.

    Also, prices are negotiable, but as I have often written, don't haggle. Prices quoted by traders are not always the price you finish up paying if you buy from them.

    Walter
     
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  3. LPPC
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    LPPC Bronze Contributor

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    Hello Walter,

    Thank you for coming to my rescue once again! I reread the parts you recommended and it makes me realize how much more information there is in that book that I still have to internalize. It also makes much more sense now that I am a bit more experienced in importing.

    +rep

    Do you mean confirming that they are real manufacturers simply by asking them whether they are manufacturers and then asking them whether they can manufacture that ( often generic) product for me?


    So traders often do not negotiate on smaller order quantities and manufacturers do, got it.



    In which way would the price end up being higher than they have quoted/promised first? For example which extra costs could come on top of the original price?

    Thanks again!
     
    Last edited: Nov 27, 2018
  4. Walter Hay
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    Walter Hay Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    Thanks for the rep+. I'm glad I reminded you about the process in my book. I find that you are not alone in tending to read and move on. I urge all of my book buyers to read the book at least twice, and preferably make notes.

    The worst case of someone failing to do more than a cursory reading was a man who broke just about every rule and ignored every warning that I had written. It cost him thousands! He is the one and only book reader of mine who has ever reported being scammed.
    Unfortunately you can't believe a word they say. You must have some hard evidence. Only then is it worth proceeding.

    Walter
     
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  5. Walter Hay
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    Walter Hay Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    [QUOTE="LPPC, post: 739142, member: 38501]"Hello Walter, Thank you for coming to my rescue once again! I reread the parts you recommended and it makes me realize how much more information there is in that book that I still have to internalize. It also makes much more sense now that I am a bit more experienced in importing. +rep"
    Thanks for the rep+. I am pleased that I reminded you to check out the procedure in my book. You are certainly not the only one who has read it once and forgotten to use it as a guide.

    The worst case by far was one book reader who broke every rule in the book and it cost him thousands! He is the only one who has ever reported being scammed. I don't know why he spent the money on the book and then ignored the advice that it contains.

    "Do you mean confirming that they are real manufacturers simply by asking them whether they are manufacturers and then asking them whether they can manufacture that ( often generic) product for me?"
    Unfortunately you can't believe anything they say without hard proof such as audit reports by reputable agencies.

    "So traders often do not negotiate on smaller order quantities and manufacturers do, got it."
    Most people think of traders and wholesalers in the way they are accustomed to such businesses operating in Western countries. There they carry inventory and will supply smaller orders, at least less than the volume they have to buy.

    My experience with Chinese traders and wholesalers is that they carry a small quantity of samples at most. They don't order until they get your deposit. This is why negotiating smaller orders with them is difficult. They are getting a discount from the manufacturers, and that discount is higher than you will get. The manufacturers don't want to give them a big discount on a smaller order.

    Remember, they are opportunist traders - not wholesalers.

    "In which way would the price end up being higher than they have quoted/promised first? For example which extra costs could come on top of the original price? Thanks again!"[/QUOTE]
    It is usually due to them being forced to pay more if they order less than the MOQ they have quoted you. They just raise the price to you. They already have your deposit and that makes the situation difficult for you.

    Walter
    P.S. A fierce storm is wreaking havock with my internet connection and for some reason is affecting the formatting. I have also lost two replies that I was posting.
     
    Last edited: Nov 27, 2018
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  6. LPPC
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    LPPC Bronze Contributor

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    Good day Walter,

    Thank you very much for the thorough reply. Everything is clear.

    Thank you for the warning, due diligence is important indeed. I will refer to the book way more often from now on!

    Hopefully the storm hasn't damaged more than that! Be safe.
     
  7. Walter Hay
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    Walter Hay Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    Are you the owner of PapaChina?

    Walter
     

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