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  • #991259
    rishflab
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    Is there anyone who has experience getting a product manufactured in China, warehoused and shipped when required. Manufacture will involve plastic injection molding, PCBs and assembly.

    1. What if the company doesn’t deliver the product. Does a non-chinese citizen with minimal funds stand a chance taking legal action. Is it even worth it

    2. What if they manufacture my design and sell it themselves. Even if I make them sign NDAs etc. As a dude with barely any money, do I really have a chance when it comes to legal action? Is it worth the risk?

    #1180680
    LucasArthur
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    Hi Dude with barely any money :)

    1. Not really on both questions there

    2. Not really on this one either for similar reasons to #1

    OEM is extremely tricky with China due to laws and the likes and you have no control, repeat NO CONTROL, over stock or distribution if you are here and if you don’t ‘own’ or have the funds to ensure stock is not on sold.

    Many times I have been advisor to ‘small’ clients importing small quantites of stock or stock on hand and the likes with an expectation that a manufacturer in China cherishes this ‘relationship’ and overlooks the fact that they are in it for cold hard cash and if your item (OEM or not) could be sold to another buyer in bulk I could nearly 150% guarantee it will be sold even if they ‘promised’ you try will not.

    All the best
    Jason

    rishflab, post: 210691 wrote:
    Is there anyone who has experience getting a product manufactured in China, warehoused and shipped when required. Manufacture will involve plastic injection molding, PCBs and assembly.

    1. What if the company doesn’t deliver the product. Does a non-chinese citizen with minimal funds stand a chance taking legal action. Is it even worth it

    2. What if they manufacture my design and sell it themselves. Even if I make them sign NDAs etc. As a dude with barely any money, do I really have a chance when it comes to legal action? Is it worth the risk?

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1180681
    MyGreatIdea
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    rishflab, post: 210691 wrote:
    Is there anyone who has experience getting a product manufactured in China, warehoused and shipped when required. Manufacture will involve plastic injection molding, PCBs and assembly

    Yes, but I don’t understand why you wouldn’t you just ship it when ready? I wouldn’t warehouse products in China, or any other country, if I’d paid for them.

    What if the company doesn’t deliver the product.

    Not an issue if you ship the order when ready

    What if they manufacture my design and sell it themselves

    You won’t be able to stop them doing this if that’s what they decide, but working with an established and reputable manufacturer, building a relationship with them, and going to meet them, can certainly help prevent this.

    Wendy :)

    #1180682
    Johny
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    I think you can sit down and play the “What if..” game over and over and what it means is that you will never get to the next stage.

    It’s not a game of what if, it is a process of identifying your concerns and overcoming them to a level that makes you comfortable. And if you cannot mitigate the risks to a satisfactory level, then don’t go any further.

    For example, to answer your questions, you basically have no chance of getting your money back or getting legal satisfaction if something goes wrong. You can either stop there or you can accept that there will always be some risk and do enough research to satisfy yourself that your proposed supplier will be reliable. Then you decide if you are willing to accept that risk. If not, walk away.

    There are thousands of successful transactions being completed with Chinese manufacturers every day, and you can practically do anything you want, but you never hear about them.

    I generally agree with the comments of Mr HarryLuke, but I differ slightly in that I have quite often been told I cannot access a product because the mold or design belongs to someone else, or that they cannot sell because someone else “owns’ that territory I want to sell into. But that often doesn’t stop another manufacturer from having a very similar product, so it isn’t necessarily going to be your supplier who diddles you.

    #1180683
    My Guy
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    If you manufacture a product, someone buys it. They can copy it as much as they like…. if you have a patent on it well done if not. order in 2 Million items, spend $300,000 on advertising sell them all off for a profit of $3 per item and retire.

    My family have always been in supplying products I got out when I was young and went into services because it’s less demanding less overheads, less worries.

    #1180684
    LucasArthur
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    Johny, post: 210752 wrote:
    I generally agree with the comments of Mr HarryLuke, but I differ slightly in that I have quite often been told I cannot access a product because the mold or design belongs to someone else, or that they cannot sell because someone else “owns’ that territory I want to sell into. But that often doesn’t stop another manufacturer from having a very similar product, so it isn’t necessarily going to be your supplier who diddles you.

    Johny (LOL)

    Does this mean that you dont agree with me on this occasion, i am shattered :(

    Nah just kidding, i agree with your whole heartedly but read his questions numbered 1 and 2 again.. The OP is asking “What if” this or that happens and proposes that the event of on selling or being ill treated (product ownership) has already taken place… That is why my answers where a resounding CANT DO A THING cos it has already happened..

    Q1: What if the company doesn’t deliver the product can i take successful legal action – NOPE

    Q2: What if they manufacture my design and sell it themselves, can i take legal action – NOPE

    Well, to not much effect that is…

    Only say this as i would hate for you not to see my reasoning behind the replies Johny, i am rarely short although in my eyes the 2 questions posed are resoundingly no. But i am open for correction.

    Cheers
    Jason

    Edit** Johny, overlook me I see you are addressing my comment about being on sold to other buyers – it’s good to see you deal with reputable manufacturers and is potentially a key benefit of someone new utilising a service such as yours :)

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1180685
    rishflab
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    Couple It, post: 210703 wrote:
    Yes, but I don’t understand why you wouldn’t you just ship it when ready? I wouldn’t warehouse products in China, or any other country, if I’d paid for them.

    Not an issue if you ship the order when ready

    You won’t be able to stop them doing this if that’s what they decide, but working with an established and reputable manufacturer, building a relationship with them, and going to meet them, can certainly help prevent this.

    Wendy :)

    I’m looking to manufacture a large quantity and sell it when a customer orders. It seems wasteful to ship it all the way here and then ship from internationally.

    Another problem that might occur is injection molder decides to up the price for the next production run despite contractual obligation and I can’t do anything sitting here in Australia. I am thinking going down the international legal action path is a lose-lose situation at a small business level. Even if I win the case, how much time will it take to resolve, how much money will it cost etc…

    I am seriously considering injection molding in Australia. Curious as too how much extra it will cost.

    #1180686
    MyGreatIdea
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    I’m looking to manufacture a large quantity and sell it when a customer orders. It seems wasteful to ship it all the way here and then ship from internationally.

    “Seems” wasteful? Have you had quotes for shipping costs? And how do they compare to the cost to warehouse and have someone else send off the orders?

    Another problem that might occur is injection molder decides to up the price for the next production run despite contractual obligation and I can’t do anything sitting here in Australia. I am thinking going down the international legal action path is a lose-lose situation at a small business level. Even if I win the case, how much time will it take to resolve, how much money will it cost etc…

    That’s what a manufacturing agreement is for…to protect both parties. So, are you saying you want to place a larger order to save money in the future should the possibility of a price rise come into play?

    I am seriously considering injection molding in Australia. Curious as too how much extra it will cost.

    Mine was quoted at five times the cost, but that including the packaging.

    Wendy :)

    #1180687
    IMEX Sourcing Services2
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    rishflab, post: 210691 wrote:
    Is there anyone who has experience getting a product manufactured in China, warehoused and shipped when required. Manufacture will involve plastic injection molding, PCBs and assembly.

    1. What if the company doesn’t deliver the product. Does a non-chinese citizen with minimal funds stand a chance taking legal action. Is it even worth it

    2. What if they manufacture my design and sell it themselves. Even if I make them sign NDAs etc. As a dude with barely any money, do I really have a chance when it comes to legal action? Is it worth the risk?

    Hi,

    New product development can be very challenging when the quantities are low as Chinese factories dont really like changes (even minor ones on their existing products sometimes). However, they are flexible as long as the quantities permit, therefore finding supplier support with limited quantities can be a huge issues.

    1. When payment amount is small. Contracts are a good tool for basic problem solving and assigning responsibility, however, when things go wrong or if a supplier is less than ethical, it is not really pursuing legal action for anything less than $50,000 USD (As a minimal starting point). Also, if you feel you may need to end up taking legal action, its important that the contract is in Chinese and not English as English contracts have little value in Chinese courts.

    2. You really need to find an ethical supplier and hope for the best. There are little pressure stratgies you can use, but you really need to be on the ground in China for this. Even Apple & Samsung cant stop copycats, so it is not really worth investing too much effort in worrying about copycats, although if your invention is unique enough a patent and TM can go a long way. Focus should be on building a brand so you can command a premium despite copycats and at the same time on innovation, i.e. bringing new updated versions of the product regularly. (with a different supplier if your original supplier leaked the design).

    Good Luck.

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