Congratulations. Now things really start to get fun.
In my slowlane career, I've done the following when meeting with potential suppliers:
1) Always ask what their core competency might be. Just because they can make a widget, doesn't mean they will be the most efficient at it. You'll find your best pricing and happiest suppliers when you hit their sweet spot. Just because they already make a widget, doesn't necessarily mean they are good at it either.
2) You are correct to ask about their capacity to prototype, or produce small quantities with a subcontractor. If they can't provide small quantities, then you've got to find another supplier just for prototyping. Not fun.
3) Be wary of the "target pricing" question. Your hunch may be correct, their quote will probably come in at around $4.50 to $4.99. I prefer to avoid the question all together, but if I can't, then understate the target price by 1/3 or so . That leaves them room to negotiate without hitting your ceiling. (It is valid though to use your quantities as a factor in the design process. Designing for 1,000 pieces per year is quite different than 1,000,000 pieces.) The "target pricing" question is usually used to determine if they want to take on the project. They do the quick math: your 3 year total quantity is say...2,500 units at $5 per unit...and to them the project has a potential gross value of $12,500.
4) Ask to meet with the designer or engineer that will be working on your product. This will be a useful contact and it will be helpful for you to be on good terms with this individual. Ask for their direct extension/email, and provide yours in return. They will likely have questions for you.
5) Ask to see the shop floor and equipment that will be used to make your product. They will usually give you the nickel tour, but ask specifically how they would build it and what equipment will be used. That can tell you a lot about their competency and the quality you can expect. (Automation vs manual assembly, etc.)
6) Depending upon the product, you might want to ask about their quality procedures, or at least meet the person responsible for quality control.
7) Figure out who the decision makers as quickly as possible and try to get to know them. They are much more likely to work with you if they like you, even if your project isn't the most lucrative.
8) Ask if they use temps, or if they are real employees. Also ask how long the employees have been with the company. If there is a high turnover rate, it can tell you something, and it could be a red flag. Ask why.
This list is neither exhaustive nor always applicable, but it's a summary of my experience. I hope it help. Best wishes.
In my slowlane career, I've done the following when meeting with potential suppliers:
1) Always ask what their core competency might be. Just because they can make a widget, doesn't mean they will be the most efficient at it. You'll find your best pricing and happiest suppliers when you hit their sweet spot. Just because they already make a widget, doesn't necessarily mean they are good at it either.
2) You are correct to ask about their capacity to prototype, or produce small quantities with a subcontractor. If they can't provide small quantities, then you've got to find another supplier just for prototyping. Not fun.
3) Be wary of the "target pricing" question. Your hunch may be correct, their quote will probably come in at around $4.50 to $4.99. I prefer to avoid the question all together, but if I can't, then understate the target price by 1/3 or so . That leaves them room to negotiate without hitting your ceiling. (It is valid though to use your quantities as a factor in the design process. Designing for 1,000 pieces per year is quite different than 1,000,000 pieces.) The "target pricing" question is usually used to determine if they want to take on the project. They do the quick math: your 3 year total quantity is say...2,500 units at $5 per unit...and to them the project has a potential gross value of $12,500.
4) Ask to meet with the designer or engineer that will be working on your product. This will be a useful contact and it will be helpful for you to be on good terms with this individual. Ask for their direct extension/email, and provide yours in return. They will likely have questions for you.
5) Ask to see the shop floor and equipment that will be used to make your product. They will usually give you the nickel tour, but ask specifically how they would build it and what equipment will be used. That can tell you a lot about their competency and the quality you can expect. (Automation vs manual assembly, etc.)
6) Depending upon the product, you might want to ask about their quality procedures, or at least meet the person responsible for quality control.
7) Figure out who the decision makers as quickly as possible and try to get to know them. They are much more likely to work with you if they like you, even if your project isn't the most lucrative.
8) Ask if they use temps, or if they are real employees. Also ask how long the employees have been with the company. If there is a high turnover rate, it can tell you something, and it could be a red flag. Ask why.
This list is neither exhaustive nor always applicable, but it's a summary of my experience. I hope it help. Best wishes.