So, you have a new idea that you think can be marketable. You then create a prototype and have it tested out. Later on, the marketing study for your prototype leads you to the point that you will need to have the product manufactured in order to sell it in the open market. So, you now form and register a business but you are still lacking the essential ingredients to a successful venture, which is manufacturing. Manufacturing the product yourself can really be a strain on capital and operating expenses and since you are covering all the bases, the cost of manufacturing will be higher than your competitors. To reduce the stress and the money needed to get things rolling, it is a wise move to outsource the manufacturing to someone who can do it for you at lower costs. Here are some ways to find the right overseas manufacturer for your product.
Ask around. Once you have your company formed and the prototype of your product in hand, the next step is finding an organization that can produce and manufacture the product in large quantities. Looking overseas is your best option since manufacturing companies in countries like China, India, and Malaysia can provide you quality products are really cost-effective rates. To start your search for the optimum manufacturing group for you, ask your friends and colleagues if they do business overseas and if they have a manufacturing company that they can recommend in producing your products. If they used these companies before for their own venture and were satisfied with the output, then these recommendations would be a good idea to follow up on since you have a word of mouth guarantee from a customer. In any case, get the contact number of the manufacturer and start the negotiations.
Use the Internet. Whether you will be supplying the raw materials to the manufacturer or they will be supplying it themselves, you will want to find an overseas manufacturer that is experienced in handling the type of products you want manufactured and the materials used to make it. The best website to initiate your search is alibaba.com. This site offers a sort of e-procurement function where manufacturers and suppliers can meet with customers in cyberspace. All you have to do is to create a profile and upload the pictures of your product and your volume. You may include your budget as well. Sooner or later, manufacturers will see your posts and respond to it. Negotiate on volume and price and have them create a sample for you. Bear in mind that most manufacturers will require a guaranteed volume to start manufacturing. You must be aware China and India will offer really low manufacturing rates with a high order requirement. While this may be appealing, most of the time the products will be low quality since the mass production does not have the proper quality assurance integration. Countries like Malaysia, Philippines, and Indonesia will have better quality but at slightly higher rates.
Once you choose your manufacturer, have him create a sample and negotiate the rate after that. Make sure to negotiate the terms of payment as well. Doing business overseas can be risky especially if you don’t know who you are dealing with. Be careful and add certain security measures to the deal to ensure that you don’t get the raw end of it.