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6 Biggest Mistakes When Manufacturing Crowdfunded Products in China

This article was written by Samantha Bruandet (Pepper)

MorphoMFG is a contract manufacturer based out of Guangzhou, China. With over 11 years of combined experience, they have taken advantage of the explosion in the crowdfunding industry and helped people to manufacture their dream products. In the last 6 months they have manufactured for over 2 million USD worth of campaigns.

Manufacturing can be a serious headache, especially if you are not on the ground to monitor what is going on. Manufacturing crowdfunded or kickstarted products can be an even bigger challenge, because for most creators, this is the first time they have ever mass produced their own invention. Below, we’ve compiled 6 common errors and misconceptions that will help you out if you ever decide to manufacture in China.

1. Only caring about price

relationshipWhen researching a manufacturing partner, price shouldn’t be your #1 priority. As you start asking around  for quotes, I think you’ll be surprised that the price range you receive will actually be a lot smaller than you imagine.

The first time you talk with a with sales reps, look for responsiveness rather than a ‘bargain’. You want to work with a factory that wants to work with you. It sounds silly, but some factories might not really be interested in your project. The manufacturing quantity may be too small. They won’t really respect you as a valued customer and you will feel like you are bothering them every time you have a question.

Not only must you feel a good vibe from the factory, but also be 100% confident about them. If you use Alibaba.com, pick a Gold Supplier. Ask about previous clients, previous projects and ask for a couple of referrals. Don’t go with anyone who’s Internet presence is almost non-existent and seems plain dodgy. If the price is too good to be true, it probably is. To avoid problems altogether, going with a contract manufacturer will ensure that you work with factories that have a proven track record of quality and honesty.

2. Forgetting about IP protection

ip protectionThe reason why products are copied in China is simple, if you go with only one factory, they will have all of your designs. They will outsource the parts they don’t produce and then assemble everything at their plant, making it extremely easy to copy.

So, how exactly do you protect your IP? Think Apple. Apple doesn’t ship off their entire design to only one factory and let them get on with it. They use a contract manufacturer whose role is to break down the product into as many pieces as possible and get them produced in different specialized factories.

This will not only ensure that nobody has your full design, making it much harder to copy, but it will also make sure that each piece is made at an expert factory, keeping the cost low and the quality high. So, remember, if your product is made of different materials such as plastic, rubber, silicon, metal… don’t give it all to one factory, split it into as many parts as possible and give each of those to factories that specialize in doing them.

3. Underestimating timelines

timeThere will always be someone to tell you that they can match your tight schedule, in most cases it’s probably not going to happen.

Manufacturing takes time, especially if you’re just starting out. Be patient. You will need to have a hand-made sample done and make sure your prototype works before moving on to mass production. In some cases, once you have confirmed your sample, you start opening the molds/tooling, which can take up to 2 months!

There have been stories of people approving samples, opening molds, starting production, only to find out the product is different from the approved sample. That is of course the factory’s fault and in those cases having someone on the ground will help you with quality control of the first batch, and, if needed, get the factory to readjust the molds-which might take another month.

Another thing is that China has quite a few long holidays that always seem to arrive at times when you expect them the least. So check your lunar calendar!

4. China is Cheap?

China has been at the forefront of the manufacturing industry for 30+ years. In this time, they have gained tremendous technological knowledge. They can produce absolutely anything you can think of. Sure, you can find very cheap quality, but the price will be cheap too. You get what you pay for and someone working for you on the ground will make sure that Western standards are met.

Some of the world’s best companies produce in China, to name a few: Apple, Sennheiser, and SONY. These brands are all synonyms of quality. Even though manufacturing in China will save you a ton of money, don’t assume that because ‘it’s China’ you can get high quality for cheap. What you pay (or are willing to pay) is what you get. Best is to have a target price.

Think about your margins. How much can your cost per unit be for you to be able to wholesale and retail and still remain in the game?

5. Detail, detail, detail

Chinese factories can produce quality provided that you take them by the hand and tell them step-by-step what you want them to do. Anything that you can add to explain what your end product is supposed to look like or how it should perform should not be left out.

Even if it seems like common sense, do not assume that your partner manufacturer will understand. Quality standards are very different in the East and West. Something that might look terrible to you would look just fine to a Chinese factory. Be specific!

Language and cultural barriers can lead to totally different outcomes than you’d expect. Put it this way, when it comes to details, the more the merrier!

6. Trying to do it all yourself

China is a seriously hard beast to tackle, and trying to do everything yourself from 10,000 miles away is almost always going to lead you to trouble. A lot of our clients came to MorphoMFG after encountering problems while doing it all on their own.

From faulty prototypes to inaccurate lead times, it is certainly a challenge. There are even situations where a client’s payment ‘never showed up’ in the factories’ bank accounts, although it definitely left your own but somehow just ‘disappeared’ into thin air…

Having a professional who is on the ground and has already dealt with most manufacturing problems will definitely minimize yours. Money spent on a contract manufacturer will help you save time, money, and headaches galore. Save yourself the trouble.

No need for unnecessary trips to China, no worrying about sourcing, prototyping, mass production, quality control or shipping and logistics. Your time can, and should, be more wisely spent doing what you excel at.

For any other issues please visit us at www.morphomfg.com or shoot us an email at morphomfg@gmail.com

About Author

Salvador Briggman is the founder of CrowdCrux, a blog that teaches you how to launch a crowdfunding campaign the right way. ➤ Weekly Crowdfunding Tips