A guide to getting your product manufactured. Or, hire us.
1. Timing is everything.
Finding a factory is a lot like dating. If you’re not ready they likely won’t take you seriously. Also if it’s not a great fit, it won’t work out no matter how hard either of you try. You ideally want to wait to reach out to any factories until after you’ve dialed in a few prototypes and have a solid set of drawings ready to share. This means you’ll want to get through your design and engineering phase, and have a nearly completed 3D model, 2D drawings and a Bill of Materials (BOM) to send to the factory. Trust us, this will be the first thing they ask you for.
Before you find a potential production partner, you’ll also want to know your go-to-market strategy, know your approximate production volumes, and be aware of any specific certifications, testing requirements or industry standards. The goal here is to show up prepared so the factory can do their job well. A half baked effort will result in a half baked product. Once you send this information over, they will come back to you with questions. If you’re working with a factory that doesn’t ask questions, chances are they haven’t reviewed your work and you likely should find another partner.
2. Trust is built with consistency.
The first question that almost every client asks us is “will the factory steal my design?”. Generally speaking, no. Factories have a very different business model than you do. They do not want to take a huge risk on an untested product, develop a customer base and sell their products. They make their margin on volume and their main goal is the same as yours: produce as much of your product as possible.
This does not mean you should abandon all legal caution. First, you should deeply vet your factory (more on this later). You should also have an NDA in place before you send documents to a factory. You should also have an NNN in place in China, and other relevant documents in other countries. Finally if you have patents to file, file your provisional patents at a minimum in the USA and the country you’re manufacturing in prior to engaging factories.
A last note on “will the factory steal my design?”: your factory will likely never steal your design, especially if you’re producing with them. However there is a risk once you are successful that a different factory may reverse engineer your product. This is a completely separate and unrelated issue. We help clients proactively avoid this issue however we won’t go into that here.
3. How to vet a factory.
Research is key. Begin by searching online for manufacturers that specialize in your industry or product category. Look for reviews and testimonials to get a sense of their reputation. Trade shows, industry directories, and professional networks can also be invaluable resources for discovering potential partners. Keep a running list of potential partners and evaluate them based on your project requirements.
Once you have narrowed down your list, reach out to the potential partners to set up meetings or calls to explain your project at a high level (do not send drawings yet). Use these interactions to gauge their communication skills, professionalism, and ability to understand your needs. Pay attention to how quickly they respond to your inquiries and their willingness to address any concerns you may have.
If you have specific requirements around factory sustainability, factory size, machinery, etc, there are third parties that can physically visit and audit the factory for you. There are also a number of websites you can use to find out what each factory ships into the USA.
4. Single source versus contract manufacturing.
What this means is are you going to work factory direct with a single partner who can do most of the product in house (single source)? Or do you prefer to work with a third party who will likely outsource your parts to a few factories then use an assembly partner (contract manufacturing)?
Both have pros and cons, with the former being a more difficult path if you don’t have experience with manufacturing and factories. Working factory direct is typically cheaper however you’ll have to address any issues yourself and should be ready to visit the factory at the drop of a hat. On the other hand, contract manufacturers are third parties that have networks set up in your country of choice with people on the ground. They manage the factory relationship as well as have a quality control (QC) team on the ground. In other words, if something goes wrong it’s their problem.
5. The quoting process.
Once you have narrowed to about 2 or 3 candidates it’s time to get quotes. Price is an essential factor, but don't make it the only deciding point. Be sure to compare the quotes, taking into account lead times, shipping costs, and any additional services offered, such as engineering assistance, assembly capabilities, a general willingness to help and other factors specific to your product.
If you’ve sent highly detailed drawings and a full BOM, you should get a quote back that is broken down by specific part number and includes assembly. If you get a single number back from the factory, ask for the full pricing breakdown.
When part tooling is required you’ll also see tooling costs as a one time cost in addition to your per part costs. Tooling is a long and nuanced topic that we won’t address here.
Last but not least, quantity drives cost. If you start with a higher quantity and pull back before production the factory will increase the price. Ask the factory where they feel the price break quantities are, and if they can store inventory on site to help reduce your per-item cost over the long term.
6. Samples and pre-production.
You'll want to make sure the manufacturing partner you choose can consistently deliver high-quality products. Ask for samples or prototypes to evaluate their workmanship, and request references from their existing clients. If possible, schedule a visit to their production facility to see their operations firsthand and verify their quality control processes. You should also employ third party QC companies if you are not working with a contract manufacturer.
It's also crucial to assess the factory’s available volume and scalability. Make sure your potential partner has the necessary resources and equipment to handle your production volumes, both in the short and long term. You should definitely ask them about their ability to scale up production should demand for your product increase - especially if you’re as successful as you hope you’ll be.
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