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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.
       

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