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  • Help with negotiating with manufacturer

    Discussion in 'Manufacturers of mechanical parts' started by cgorrell, Dec 13, 2012.

    1. cgorrell

      cgorrell New Member

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      I am a young design engineer out of UMD and I am working on selling a simple phone charger. I found on a product on Alibaba that I thought was very close to what I was looking to build and I received a quote for about $1.25/ unit. I know I could buy the individual parts for the charger from other manufacturers for about 15 cents/ unit and I am trying to figure out weather I could negotiate with the product manufacturer, or buy the individual parts and find another manufacturer to assemble the charger for less than $1.10/ unit.

      What I am really looking for here is some insight or if anyone knows of some good literature/ books that might help me learn the "secrets" to successfully negotiating manufacturing with overseas plants that would be a HUGE help.


      Thanks,

      C.J. Gorrell
      Schindler Elevator Corporation

      [​IMG]

      "Still my favorite Project"
       
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    3. DesignTechnologist

      DesignTechnologist Member

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      I guess it depends on a few things. How much are you looking to sell the unit for? How long will it take you to assembly the unit? What would your fall out rate be? Are you doing all the testing and making sure they are 100% working?

      Sometimes it is better to have someone else do the complete manufacturing, testing, packaging espeically when yo uare starting out. Having said that, I'm not sure what your unit is consisting of and how it goes together.

      Usually when we are looking at getting something produced, we will get a few quotes, that way we can compare them to each other. If they are mostly in the same ball park, then you know the price is pretty good. but if you get two lower ones, then you know the $1.25 is too high.

      Let us know what you decide.
       
    4. Franz_fladic

      Franz_fladic Member

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      agree with the above comments. there are a lots of manufacturers on alibaba, you can try to find more and get quotes for comparison
       
    5. China CNC Machining

      China CNC Machining New Member

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      Very easy work. Firstly get more offers. Not he highest price, not the lowest price. And keep 2 or 3 target suppliers in hand and it's better to have a look at these suppliers in China before making decision. If it's not possible to come to China, then buy some samples from different suppliers and you will know which one is finally good for you.
       
    6. s.weinberg

      s.weinberg Well-Known Member

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      I have extremely limited experience here, so giving only a mostly uninformed impression, but you get what you pay for :p

      I assume, at around $1.25 a piece, you plan on selling a lot of these.

      If you're selling a 'lot', it's probably best to just buy the unit whole (after getting a few quotes, as has been suggested). Relatively few headaches this way, and they've made things pretty predictable.

      If you're selling a 'whole lot', it's probably best to try to find someone local to where you are to assemble the parts. It'll cost you more, but getting things wrong in China will cost you more. Getting things right in China will probably take time and expertise that may not be worth the investment required for the volume you are selling.

      If you're selling a 'hell of a lot', then put in the effort. Hire someone who knows the players, regulations, and what have you. Go on site visits. Get product from a number of places, and invest in careful inspection. It's ultimately the cheapest way to go, and pennies count on a 'hell of a lot' of product.
       
    7. Erich

      Erich Well-Known Member

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      FYI, The original post was placed just over 4 years ago. And he only made one post and has not visited this site since the day he joined. We can thank Raycom for their first post spam for resurrecting this thread.
       
    8. s.weinberg

      s.weinberg Well-Known Member

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      Ah. Thanks Erich. My radar is apparently broken.
       
    9. hans06032

      hans06032 Member

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      As Chinese manufacturer, we also sell on alibaba. Personally, I think you may you target price, delete the highest and lowest quotations. And try to study the manufacturer company capacity.
      If the shipping cost is not expensive, maybe you could discuss if the supplier can provide samples for test.
      I thank that will much better for your final decision.
       

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