If you could manufacture/import any product....

[Chris W]

I've always been curious about manufacturing and importing products from other countries and wanted to know what you guys thought about it.

If you could have any product manufactured in another country and have it imported into the United States, what would it be and why?

Once you have the product in the United States, how would you market it?

Guidelines:
*Cannot be name-brand. Ex: Dell, IPod, PS3, etc.
*Has to be legitimate.
*Has to be able get past customs.

Thanks,
Chris

 

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[Blue]

I have a product being imported from China. It's on a ship right now, it left port last week and I should get it in a week. Had to hire someone in US to had customs paperwork. I have no idea what the duties and fees will end of being, it's my first shipment.

I'm going to market the product on its own website once it's here. Then I will wholesale it to online retail stores and put it on Amazon.

 

[MJ DeMarco]

What type of product Mr. Blue? Or is it a secret?

 

[bonkers123]

Yeah hes not going to tell us its a SECRET...I tried asking him and he wouldn't let us in on it...GREED lol jk

 

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[MJ DeMarco]

What type of product Mr. Blue? Or is it a secret?

Nevermind, I discussed offline ... thanks Blue.

Yeah hes not going to tell us its a SECRET...I tried asking him and he wouldn't let us in on it...GREED lol jk

Probably because people can't be trusted. I don't blame him.

 

[bonkers123]

Nevermind, I discussed offline ... thanks Blue.



Probably because people can't be trusted. I don't blame him.

So he told you what it is? and not us? that's not right...

 

[Blue]

So he told you what it is? and not us? that's not right...

Bonkers,

First of all, MJ never said he found out what it was. Reread his post again.

Secondly, why would I tell you or the forum what the product is? Why do you want to know? Like I'm going to trust you after reading your post below.

http://www.thefastlanetomillions.co...leather-case-screen-protector-fs-17-99-a.html

 

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[Chris W]

Good luck on your product Mr. Blue (whatever that product might be)! I hope it works out for you!

Anyone else have any ideas?

 

[hakrjak]

With so many people unemployed, and the cost of labor in the USA at a major low... I just don't see how it is profitable to rely on shoddy Chinese manufacturing anymore, with all of the drama that comes with it, and the cost of shipping overseas. If you want to make something, set up a shop here in Detroit to make it, and I guarentee you'll have 500 people in line for 5 minimum wage jobs.

- Hakrjak

 

[PaulRobert]

With so many people unemployed, and the cost of labor in the USA at a major low... I just don't see how it is profitable to rely on shoddy Chinese manufacturing anymore, with all of the drama that comes with it, and the cost of shipping overseas. If you want to make something, set up a shop here in Detroit to make it, and I guarentee you'll have 500 people in line for 5 minimum wage jobs.

- Hakrjak

I agree with Hakrjak here. Sometimes you might be surprised that it is more profitable and efficient to have it made here in the US than overseas. (I can speak for myself, since I am having my product made here.) And, IMO it is better to see "Made in the USA" which will probably send a message to the consumer that this was made with quality in mind for the customer, not to cut corners and have bigger profits for the business owner.

http://www.thefastlanetomillions.com/business-building-traditional-b-m/25662-proudly-made-usa.html atriot:

 

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[theBiz]

I always wanted to import plumbing products. To set up distribution center would be nice. It will involve work initially but you can grow huge with this. Fittings can be a few bucks each, there is a ton of money in installations so the money is there, all and all i think its such a good industry. Pex (radiant heat) pipe is really something else great to import, people have high profit margins, i have seen some cheaper products in china that can beat what some of the supply places are paying which i know for a fact. This is not my ideal biz so i never attacked it, but it is amazing what you can import now, they have 1 piece showers you can drop in under an hour. Also importing modular homes seems to be smart if you get exclusive rights to sell. If you have marketing ability and are able to get a product that can replace every day needs cheaper i think its success. I would for sure look further into this. Contractors are loosing jobs every day due to people coming and strapping a 2nd story onto your house. The more people get used to it and the economy being crappy people will go this route. Also you make money on the product not just installation.

 

[LightHouse]

Whoa, FYI this is not my AE or anything!

The only products i would want to bring over is something i have created, everything else is already being brought over. The original post doesn't make a whole lot of sense.

and i can't get over you sign your name the same way i do! LOL

 

[Blue]

With so many people unemployed, and the cost of labor in the USA at a major low... I just don't see how it is profitable to rely on shoddy Chinese manufacturing anymore, with all of the drama that comes with it, and the cost of shipping overseas. If you want to make something, set up a shop here in Detroit to make it, and I guarentee you'll have 500 people in line for 5 minimum wage jobs.

- Hakrjak

That's all fine if all you had to do was find labor. But what about office space, equipment and everything else that comes with hiring people? I could go to a manufacturing plant and say build me X number of these. Do you think the price will be lower than from China?

With that said, I will take a look and see what my product will cost here in the U.S. I am willing to bet that it will cost more or the same even with shipping and import fees.

Another thing about importing that is very desirable. Is the risk at the beginning. You import 500 widgets and don't sell them, oh well no biggie. You spend all the money and time to manufacture the widgets and don't sell them. Guess what, you got employees to lay off, rent to pay, idle equipment.

Did you guys ever see the entrepeneur TV show (i forget which one) where the one company invented this awesome tool that removes stripped screws? Instead of outsourcing the manufacturing they wanted to make it themselves. They had 5 custom machines built at $100k a piece to make this $20 retail device. They sunk like $3-5 million into the project because they wanted the product perfect. Probably would have been better to outsource it or do a trial run.

 

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[hakrjak]

Well, it all depends on the product....

If we're talking about making t-shirts, then I think your startup cost would be pretty low because you'd have to just buy a couple of sewing machines, and hire some people who can sew for minimum wage on a contract basis... And when the job is finished, so are they.

You aren't hiring the United Auto Workers here, to come in and demand lifetime medical benefits and bankrupt you. ROFL

I can also see someone making a metal product, and buying a lathe and some other metal working tools, and hiring a couple out-of-work machinists to come in on a 3-6 months contract and bang out some widgets.

Same thing for products out of wood -- Tools are cheap... labor is cheap...

Cheers,

- Hakrjak

 

[mkzhang]

If we're talking about making t-shirts, then I think your startup cost would be pretty low because you'd have to just buy a couple of sewing machines, and hire some people who can sew for minimum wage on a contract basis... And when the job is finished, so are they.

Food for thought, since most of the fabrics will be imported anyways, why you pay the raw material cost + shipping + labor here just for the fact of having it done here?

Having it done in China then shipped over would have cost so much less - the fabric manufacturer would of been near by the sewing company, you paid the same shipping but now the product is done. In the case of apparels, people only choose to manufacturer them in USA is to delay the customization of the item.

They order 1000 white shirts from China and then dyed them or stamp them with logos once they are very certain of the demand. This is only done so that they can minimize on inventory on unpopular colors or out of favor sports team or style.

 

[Blue]

Well, it all depends on the product....

If we're talking about making t-shirts, then I think your startup cost would be pretty low because you'd have to just buy a couple of sewing machines, and hire some people who can sew for minimum wage on a contract basis... And when the job is finished, so are they.

You aren't hiring the United Auto Workers here, to come in and demand lifetime medical benefits and bankrupt you. ROFL

I can also see someone making a metal product, and buying a lathe and some other metal working tools, and hiring a couple out-of-work machinists to come in on a 3-6 months contract and bang out some widgets.

Same thing for products out of wood -- Tools are cheap... labor is cheap...

Cheers,

- Hakrjak

If I were making t-shirts I would not be buying fabric and having someone put together a shirt for me using my own sewing machines. I would probably purchase wholesale t-shirts (that were made overseas) and send them to a screenprinter. Or I would then hire some people to sew or modify the shirt to whatever I wanted.

Just sitting here thinking about buying fabric and a sewing machine with some minimum wage workers, I just don't think they can bang out a t-shirt at under $3 a shirt.

Would you purchase fabric from a dealer in the US or in China?

 

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[mkzhang]

If I were making t-shirts I would not be buying fabric and having someone put together a shirt for me using my own sewing machines. I would probably purchase wholesale t-shirts (that were made overseas) and send them to a screenprinter. Or I would then hire some people to sew or modify the shirt to whatever I wanted.

Just sitting here thinking about buying fabric and a sewing machine with some minimum wage workers, I just don't think they can bang out a t-shirt at under $3 a shirt.

Would you purchase fabric from a dealer in the US or in China?

I would import it, over 90% of textile manufacturing in the entire world has been off shored to some where in Asia. Only American Apparel makes their clothing strictly in the USA from the raw cotton to final products.

The only advantage to having an american dealer / middleman is they probably have a better procurement system in place to ensure quality.

 

[EastWind]

Bonkers,

First of all, MJ never said he found out what it was. Reread his post again.

Secondly, why would I tell you or the forum what the product is? Why do you want to know? Like I'm going to trust you after reading your post below.

http://www.thefastlanetomillions.co...leather-case-screen-protector-fs-17-99-a.html

security through obscurity is no security!

you have no edge! so stop deluding yourself! if you import those products, you are going to sell em, someone will notice it, and say HMMM, I can buy and sell these too, and you will have competitors. you have no edge! if you think us not knowing about this product gives you an edge, perhaps to some of us, but not the world. you are worried about all 3 or 1000 of us on this site, what about the other 6+ billion people in the world? come on!

if you manufacture the product, then you product/manufacturing process will be your edge. If you want an edge, get a license to be an exclusive importer/distributor in the US (FREE GAME for ya, see some of us do help out here) Else you have no edge. The only edge you might have will be your sales process if you do have any. But trust and believe, if the margin is good, copycats will copy it in a new york minute!

 

[Blue]

security through obscurity is no security!

you have no edge! so stop deluding yourself! if you import those products, you are going to sell em, someone will notice it, and say HMMM, I can buy and sell these too, and you will have competitors. you have no edge! if you think us not knowing about this product gives you an edge, perhaps to some of us, but not the world. you are worried about all 3 or 1000 of us on this site, what about the other 6+ billion people in the world? come on!

if you manufacture the product, then you product/manufacturing process will be your edge. If you want an edge, get a license to be an exclusive importer/distributor in the US (FREE GAME for ya, see some of us do help out here) Else you have no edge. The only edge you might have will be your sales process if you do have any. But trust and believe, if the margin is good, copycats will copy it in a new york minute!

Seriously, do you even know what you are talking about? I have no edge? How do you know?

If you really think that someone would be so blind to think that by not disclosing it here would limit my competition, then you are truly misguided.

See, people post here as a courtesy to share knowledge. But some readers just can't come up with their own ideas and have no motivation. They always want to follow in other's footsteps.

I choose to share my knowledge of the customs and import procedure from China just in case others may want to learn. But instead, we get other hitchhikers wanting all the details. What businesses in their right mind would give out that info in a public forum?

So did you get a license to be an exclusive importer for your product? What was the product?

 

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[Bobo]

You can beat China on costs now, now Vietnam is where the Chinese outsource to get things cheaply.

This is a cyclical thing. Jill and I lost our minds, left our high tech careers and decided 'screw it, let's be fashion designers!' for 6-7 years and we designed products overseas and sourced materials and labor etcetera.

Now our approach to the market was not to see how little we could spend but to see how much we could spend on materials and construction. I had a strong background in supply chain management and if you know what you are doing, you can spend 5 times as much on materials and construction as the other guy and sell at the same price.

Couple things: what cost me $50 total to have done by hand in Italy would cost me $5.60-$8.20 in China using Chinese and Korean textiles. The Chinese and Koreans bought German made high speed looms and are now producing their own. The quality level was 75% of what it is from Italy and they are getting better.

For our products, again it was a matter of quality at any cost, there were too many makers at the low and medium end so we went after the ultra luxury niche market.

...but not everything requires an artist.
Boxes: The tie boxes we did in Italy were really nice but wound up costing us $3 due to shipping, duties etcetera. It cost us $2 to make them here. We were able to get a box custom made in China for around .70 in lots of 1000 - that's the landed cost.

My advice is this: there are things you want the very best quality for and areas where you want to shave costs and you need to think that through.

Would I build a factory in Detroit because I am a patriotic American? No, I would not do that unless it was financially the smart thing to do. A business has one function - to turn a profit. Turn a profit legally and ethically? Yes. ...but my assumption is that once I started a factory in Detroit I would get a call from some labor organizers who would then tell me I can't pay minimum wage or pay the same for labor on Saturday as I do on Monday. Then the government would tell me that I have to provide $10/hr in benefits for the $8 labor or else pay a fine. Then I would have to figure out how to sell my product for more money or else my business would not turn a profit. In reality what would happen is that I would shut the plant and move offshore to a country where the rules were set up to be inviting to business rather than punitive.

Back to the original topic, it is easy to have things made elsewhere and depending on the type of product there are lots of options which you should investigate. Alibaba.com has lots of leads for manufacturing. You send inquires and ask to have a sample made at nominal cost and then negotiate on price and quantity.

When you deal with China your first problem will be that they will offer you a great price... on 100000000000 units. Don't panic, they want to sell you a container load, you can talk them down to a pallet at slighly higher costs per units.

You need to read the tariff laws, there are charts and tables for every product type you can think of and it is fairly straightforward.

If your product is light and small you can consider DHL or Fedex Freight, otherwise add a few weeks to your lead time and send it, literally, on the slow boat from China to the west coast then put it on a train to your nearest hub and truck it the rest of the way.

You don't need to be a huge company to have manufacturing work done and you don't need to hire or build a factory. The investment required to staff and outfit a factory is prohibitive for a startup. Manufacturing capacity is a commodity today and there are pros all over the world who will bid for the work. Once you prove that you can move what a factory can produce then you can start looking at the longterm ramifications of doing it yourself. Maybe Detroit would be an option then but I'd be negotiating all sorts of tax breaks and I'd understand precisely what the union issues would be and then it would be a financial question.

One last thing: Never get emotional or sentimental about where the product is made, your job as a business owner is to get your specifications met for the best cost, the best ontime delivery etcetera. That might ruffle some feathers but business is tough, wear a cup.

 

[Guest3722A]

Would I build a factory in Detroit because I am a patriotic American? No, I would not do that unless it was financially the smart thing to do. A business has one function - to turn a profit. Turn a profit legally and ethically? Yes. ...but my assumption is that once I started a factory in Detroit I would get a call from some labor organizers who would then tell me I can't pay minimum wage or pay the same for labor on Saturday as I do on Monday. Then the government would tell me that I have to provide $10/hr in benefits for the $8 labor or else pay a fine. Then I would have to figure out how to sell my product for more money or else my business would not turn a profit. In reality what would happen is that I would shut the plant and move offshore to a country where the rules were set up to be inviting to business rather than punitive.

...but business is tough, wear a cup.

Lol! Thank you for that, and right on the money. Whereas the film industry is currently enjoying huge tax breaks currently for filming in Michigan/Primarily Metro-Detroit.

+Reputation w/me

 

[Bobo]

Don't get me wrong, if all other factors are equal I'd be all for creating jobs here. Wehn we made things in Italy it was because for artisinal products, 'Handmade in Italy' has a certain cachet. There are pockets of real manufacturing excellence in the US but they tend to be very specialized. When it comes to mass production ...well

 

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[EastWind]

Seriously, do you even know what you are talking about? I have no edge? How do you know?

If you really think that someone would be so blind to think that by not disclosing it here would limit my competition, then you are truly misguided.

See, people post here as a courtesy to share knowledge. But some readers just can't come up with their own ideas and have no motivation. They always want to follow in other's footsteps.

I choose to share my knowledge of the customs and import procedure from China just in case others may want to learn. But instead, we get other hitchhikers wanting all the details. What businesses in their right mind would give out that info in a public forum?

So did you get a license to be an exclusive importer for your product? What was the product?

I'm talking about, IF the only edge you have is by hiding the source of your product then it's no edge. So if you have other advantages, then it wouldn't matter if other's know the source.

Talking about if I have an exclusive license for my product, I do! I AM AN INNOVATOR / INVENTOR. I make my own products, I don't sell anything for anyone else! Other's sell for me.

 

[Bobo]

OK kids, knock that shit off or I will pull the car over and come back there.

Seriously - tone doesn't come across in print so if you don't mean to come across harshly it helps to say so.

FWIW East - maybe you could have illustrated your point better by saying what you do and why as an example rather than the 'stop deluding yourself' and 'you have no edge'... that came across a little bit less than helpful/friendly.

 

[LightHouse]

Bobo, More great information. We love leaking all your smarts right out of your head, LOL. I have a few books on supply chain logistics and global sourcing, I wish i had questions for you but i haven't even cracked into those books yet. If you have any tips and tidbits of info I would love to see a thread on it!

 

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[Blue]

syou are worried about all 3 or 1000 of us on this site, what about the other 6+ billion people in the world? come on!

BTW, In case you don't know this. Competition is smart, you don't think that your competition will not see this thread? They have their alerts and readers set up to spot keywords on a daily basis. I know I do. As soon as my product or any of its keywords are mentioned on any site, it pops up in my email or rss feed. As soon as a new store selling my stuff or website with my keywords are indexed, I know about it.

So before you think that divulging anything here is so obscure that only random people see it you may want to think again.

 

[Bobo]

Lighthouse - fortunately it ain't rocket surgery.

The simple part to know is this:
The cost of an item used to be based mostly on the cost of manufacture. We are REALLY good at manufacturing stuff these days.
Think about VCR's or PC's... the first ones cost and weighed a LOT more than the later ones. Parts are commodities now, manufacturing and assembly are very tight. Go watch trucks unloading parts at the 'mouth' of Dell's factory then go around to the ....uhm, other side and load PC's.

Today, the cost is in the supply chain. If you and I both import a product from Italy and you go to a jobber in NYC to make the order and he goes to a guy in Milan who coordinates on that end and I just sit my happy a$$ on a plane, go there, remove three guys from the process ...well, my cost is already half of yours and my quality is higher because I'm a prick and I will get things made the way I damned well want them made because I'm there to make product, not friends.

The key: Cut out the middlemen, you, factory, DHL - that's the supply chain you want. By Etailing over the web you cut out a lot more overhead.


The trickier thing is demand forecastig and for that you are talking PHD level math, supercomputers and a lot of trial and error to hit the sweet spot. The sweet spot is where you are maximizing profit by keeping just enough product on hand to ensure you don't run out, priced as high as you can price it without customers blaking and without wasting shelf and warehouse space with more inventory than you need (wanna keep 1000 big screen TV's around?).

For now... Figure out how to remove as many links from the chain as you can, write checks to each link and deal with them independently and watch out that you don't tie up your money with 90000 widgets if you can only turn that inventory once every 18 months.

 

[Bobo]

BTW, In case you don't know this. Competition is smart, you don't think that your competition will not see this thread? They have their alerts and readers set up to spot keywords on a daily basis. I know I do. As soon as my product or any of its keywords are mentioned on any site, it pops up in my email or rss feed. As soon as a new store selling my stuff or website with my keywords are indexed, I know about it.

So before you think that divulging anything here is so obscure that only random people see it you may want to think again.

You both have a point but you are missing the larger one - like, y'know - the profitable one you can actually control.

Once your product is out it will get knocked off. Even if you patent things people will knock it off and steal your idea. Next week we'll talk about Santa and the Tooth Fairy, I just don't want to overload you with negativity all in one sitting.

The idea is to put yourself in a position where you can show them the blueprints, tell them what it costs you and not give a shit because they can't touch your quality and price at a profit because you've already put the best possible process in place. That's where your secrets need to be, not in the stuff your first customer can tell in 3 seconds. People knew how my products were made, it was a selling point. My sources knew that the day they told a competitor they made stuff for me they might as well change their name to Fredo and hop in the friggin rowboat because they were dead to me.

What I am saying is this: If you are afraid someone will do it better/faster/cheaper then quit arguing with people on a forum and go out there and spend that energy figuring out how to do it Best, Fastest, Cheapest (or the appropriate mix of those conflicting goals to make your product untouchable).

...I used to get competitors coming to me for production because they heard I was the guy who had the best sources. They were right about that, while others went to showrooms my a$$ was 4000 miles away talking to the guy who had been making the stuff for 40 years about what could be tweaked to make the product better... who wants to compete against that? Be the better/faster/cheaper yourself and the competition gives up or they don't but they can't beat you unless your process is beatable.

 

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[Blue]

You both have a point but you are missing the larger one - like, y'know - the profitable one you can actually control.

Once your product is out it will get knocked off. Even if you patent things people will knock it off and steal your idea. Next week we'll talk about Santa and the Tooth Fairy, I just don't want to overload you with negativity all in one sitting.

What I am saying is this: If you are afraid someone will do it better/faster/cheaper then quit arguing with people on a forum and go out there and spend that energy figuring out how to do it Best, Fastest, Cheapest (or the appropriate mix of those conflicting goals to make your product untouchable).

My point directed at Eastwind was that I am not afraid of competition, but the fact that people on the forum want all this information like price, customs, duties, manufacturing country AND want to know the product. Nobody in business will tell you all those things in a public forum. In fact, if I ask Eastwind or Bonkers to do the same, I am willing to bet they wouldn't post it.

You mention someone will do it better/faster/cheaper and that someone is me. If I couldn't do that, why would I be importing something? I don't invent or patent new things. I sell things that people already sell for more money and get them for less. :smxB:

 

[Bobo]

So basically, Blue, you import a product that there is demand for and sell it. So you aren't manufacturing anything, you did a good job sourcing it from an inexpensive source and you are moving some volume so right now you have a good niche.

Without divulging your widget, do I have that right? Not suggesting that isn't great. It is true that if you said you are importing knockoff chi irons from so and so manufacturing in Shanghai ....then absolutely, easy on the details.


As a general rule though the people on this forum aren't here to steal from each other, I know too many of them and they are genuinely interested in pursuing their own gig while helping others with theirs.

I understand guarding agains the worst, just don't assume bad intent around here. There are few jerks.