Episode #4: Finding The Perfect Factory For Production: Part 2
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In this episode of Making It in The Toy Industry, we focus on Manufacturing in the USA. Learn how to use an indispensable resource for American manufacturers. We'll outline key differences in working with a factory in China versus a factory in the USA. We also cover 8 key topics and questions to discuss with the American factory you're considering partnering with. This quick start guide to finding your perfect factory is full of tips, tricks and actionable advice. Find the full transcript and episode links below.
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This episode is brought to you by thetoycoach.com
Click here to visit Makers Row online.
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Azhelle (00:00): You are listening to Making It in the Toy Industry. Episode number four. Jingle + Intro (00:07): Welcome to Making It in the Toy Industry, a podcast for inventors and entrepreneurs like you. And now your host Azhelle Wade. Azhelle (00:17): Hey there, toy people Azhelle Wade here and welcome back to another episode of Making It in the Toy Industry. This is a weekly podcast brought to you by the toy coach.com. I am so happy you're here with me today. I know there are a ton of podcasts out there and you chose to listen to this one. So thank you. So in today's episode we're going to cover how to go about finding reliable domestic manufacturers. Now I'm currently based in the USA, so this episode is going to be full of actionable advice that is specific to finding a manufacturing partner here in the USA. But these techniques and strategies can definitely be applied wherever you live. So please bear with me as I may mention, the USA again and again and know that you can utilize these tips domestically in your own country. So last week I told you guys that there are several online marketplaces built for helping you find factories to partner with. Azhelle (01:25): We discussed alibaba.com and product development and approval in super detail and I got a lot of great feedback about that episode. So this week I'm going to be introducing you to a similar resource for finding manufacturing partners in the USA. Now I also plan to share with you today my grassroots unconventional strategy for finding sample makers and private manufacturers in this episode, but yet again as I was writing and writing about this amazing online resource, I found myself several pages into content when I realized this is just too much information for one episode. So you're going to have to keep on coming back and listening to find out more about what that grassroots strategy is for finding private manufacturers and sample makers. But don't worry, I won't have you waiting too long. Just a quick reminder. Today's episode is a continuation of last week's episode, so if you haven't heard that episode, I would definitely recommend you listen to it because there will be some industry terms like BOM and MOQ that may throw you off if you haven't listened to episode three. Azhelle (02:42): Okay, so let's dive in now. I know a lot of you loved last week's episode and since then I've been getting a lot of IgE messages and emails asking me about manufacturing in the USA and you know, it just so happens that I'd already planned to do this episode focusing on the USA. So perfect timing guys. So last week I introduced you to the online resource for Chinese manufacturers and that was Ali Baba. Well guess what? There is an online resource for us factories as well. So the site I'm going to share with you today is one I found back in 2012 and I found this site when I was in the middle of launching my convertible event where line called CustomizeMe and I still have that line. It's customized me.com if you're a woman and you're looking for something to wear to an event, it's C O S T U M I Z E M E.com. Azhelle (03:43): Um, but while I was looking to develop a thousand pieces of some dresses and leggings and bandeau tops, I really wanted to keep the manufacturing and in the U S for quality control. And honestly, just for a change of pace because I'd been so used to working with factories in China. So I did a ton of Google searches and I landed on this amazing online resource for American based prototypers and manufacturers known as makers row.com. Now maker's row is like a U S version of Alibaba. I know it's, you know, it's better. The site is really intuitive. It's extensive, but curated and extremely detailed. Now it has a nominal monthly fee. It's just $35 per month. And if you do some Googling like I did, you can find a really good coupon code or two. So if you want to know the coupon code that I found for $9 off, go to the toy coach.com forward slash podcast forward slash four for that freebie, and I will link to all of these links that I keep talking about in my show notes. Azhelle (05:02): You can just click and go. So I've got some good news and some bad news for you about using maker's row. So the good news first, okay. If you choose to sign up and get an account with maker's row, you will gain immediate access to an entire library of American prototyping and manufacturing factories. Now I am talking thousands of factories. Yes, that's right, my friend. Thousands. Okay, so that was the good news. Now here's the bad news makers row, like I said, is a site that I discovered while searching for ways to produce my convertible event where line in the USA. So what does that mean? That means the site is, or at least back in 2012 was primarily for apparel. Second to apparel. They have tons of manufacturers, accessories, furniture and home decor and even packaging. Okay. All right. Before you started lighting the torches and raising the pitchforks, trust me, I am not wasting your time. Azhelle (06:10): The library of factories on maker's row is so huge and it's grown so much since I first discovered it in 2012 that with a little digging, you are likely to find a factory that even if they don't have a ton or maybe even any experience in toys, they can still help you out. Now, there are three ways to go about searching for a factory to work with on maker's row. The first way is you can just create a project. The second way is you can use their search tool. The third way you can search by category through their extensive catalog. So let's go through, um, way number one. I'm just going to walk you through this so you know what to expect if you sign up for makers row. So first, when you create a project, you're going to, when you first joined, you're actually gonna see a screen that says, do you want to create a project? Azhelle (07:07): You don't have to do this, but if you choose to, you're going to hit this big square button. It's also an icon that says, create a project. Next you'll be asked a few basic questions. Product name, what industry is a four? Likely you're gonna select other and, um, a project description. Um, all of these things are important because when you're creating a project, you're actually creating something that other factories can bid on. So you'll be asked to answer, um, questions like your desired costs, price, your intended retail price. I probably wouldn't put in the intended retail price. I don't believe that that's a required field. So I honestly wouldn't put that in. Um, your budget, et cetera. Uh, you can even select the category that you need help with. Now, makers row is really kind of a all inclusive, um, help desk. They have resources that will help you with ideation, pattern, making materials, um, sample, making, tooling, you know, production, everything. Azhelle (08:10): Um, the second way to search makers row is you can use their search tool to use their search tool. It's not the search tool that you see in the top right. It's not the white search tool. You're actually going to scroll all the way to the top, um, hit factory search, and then you're going to be taken to a page where you'll see a long gray bar up here at the top of the page with a red search, um, icon to the right of it. So in this gray bar is where you're going to type in something like plush. Don't be too specific. I wouldn't type in plush toy. Again, this website is not really for us, but we're gonna make it for us by searching the things that we need to find kind of vaguely. So you might type something in like plush and see what comes up. Now the results you're going to get here are going to be a lot better than Alibaba results. Okay? So instead of like 64,000 queries, you're going to see 11. So you only have to go through about 11 factories that for some reason the word plush pulled them up. Azhelle (09:15): Now remember, this is a site that focuses on apparel. So toys or toy factories are few and far between. But I know you, you're my listener. You are resourceful. So when you see a factory near your hometown with experience doing plush dog toys, you say to yourself, well, you know what? I bet they can do regular plush toys too. And I bet you you're right. Okay, so you're going to reach out to those factories and you're going to tell them, Hey, I'm a new client. You know, I've got something interesting for you to work on because at the end of the day, everybody in these factories, there's just people, there are people looking for something exciting to do. And you know what? We have the most exciting products that they ever going to work on their toys. Because I have noticed when I go to manufacturers or prototypers that are not used to having toy product, even when I'm not ordering a ton of samples, they are just so excited to work on something that like isn't a spoon or a chair that they're just like, yes, please give it to them. Like whatever you want me to make. That's adorable. I'll do it. So don't be afraid to leverage the fact that you're working on a toy product to get a factory more interested in working with you. Azhelle (10:28): Number three, you can also search makers row by category through their catalog. So you scroll all the way back to the top of the page. You hit browse our catalog and you're going to see a result of all makers, row factories, materials and services sorted by category. So you're going to notice there is no toys category or plush category, but I implore you to dig into the other categories at all costs. And honestly, if you see something like dog toys or if you see something like pillows, you know, if you're looking to do a plush, then that's where you need to go. If you see something like furniture, like wooden furniture, and you're saying, you know what, I'm making a wooden toy, that still might be where you need to go. Um, if you see something like children's apparel, you're saying, well, you know what, I'm making a doll and maybe I have an open market base but I just need to make the clothes for it.Azhelle (11:30): You might be able to go to children's apparel and get your doll clothes made. We've got to be creative here people there is a resource and we are going to use it. Okay. Right? So the next step, once you found a factory and you've read all about them, maker's row is a clean, crisp system. I don't have to explain it to you. It's very self explanatory. When select a factory you want to work with, you'll see their parameters. But once you start communicating with a factory, um, it's really important that you schedule a visit. So back when I first used makers row, I had an opportunity to produce about a thousand pieces of my convertible snap dresses. And I mean I quickly realized I can't do all that on my own. So I searched out, um, the site and then I searched the site until I found this small clothing factory in Pennsylvania. Azhelle (12:23): I'm still in touch with them today. After communicating with the factory owner via email, I scheduled a visit and um, I was with a good friend of mine. We were actually on our way to a cross country road trip. Um, but I scheduled this visit so it would line up with uh, our trip. And as we were going across country, we're leaving New York and heading into, um, Pennsylvania. So, um, we stopped by this factory and they showed me around and we talked about my product and it was, it was just the best experience, you know, it was really vital to feeling like you had a connection and an understanding of the capabilities of your factory and it and the feeling that they really care about your product. So planning a visit with your factory is the next crucial step in your product development process. And make sure you do that and don't just jump into production, take the time to get to know your factory. Azhelle (13:23): And quite honestly, if they let you take pictures, it's great IG content. Get that in there. Okay. Now the factory visit is very important. And when manufacturing in the US you have little to no excuse to not perform the factory visit. So when you go to the factory, you're going to want to come prepared to start explaining your product. But you're also gonna want to come prepared with questions. So you're going to want to write down this checklist and make sure that you have all of the pieces you need to start quoting your item and that you ask all of the questions you need to ask to know if this factory would be a good partner for you. So first you want to make sure you come prepared with a sketch or rendering or a sample better yet have your finished product. And you should have a product specification sheet that specifies the size of all of the pieces, the materials, the finishes, the intended age for use. Two, you're going to need to have a sample and rendering of the packaging or tags that will need to be applied.Azhelle (14:33): Now if you're manufacturing in the US you may not have them fully package your item out of just reasons for labor, but you may have them add on tags or things depending on what your item is, so you should come prepared with a rendering or a sample of the packaging as well. Three, you have to know your target factory cost and the quantity you intend to produce. Just like when producing with China, the quantity you intend to produce is going to directly affect the cost the factory gives you. Now your target factory cost, remember, does not include any cost of materials, trims electronic components excetera when you're manufacturing in the U S this is usually only the cost of labor to make your item. Now when you're doing something like prototyping, it's a little bit different. Say you're printing and SLA model a 3D print of like a 3D file that you have. Azhelle (15:32): Typically the the material charge is going to be included in the quote that you get for the item. But if you're making like a plush piece, you're going to be expected to provide the fabrics and the patterns and you need to incorporate that cost into the factory costs before you can determine what your true cost to make. This item is. When manufacturing in the U S labor is much higher, therefore you'll want to minimize the factories labor by planning things like delivery and pickup of materials and finish samples by you or a third party courier. If you aren't using standard materials, just be prepared to have to arrange the purchase and delivery of your special materials to your factory to complete your orders. Now all of these extra pieces need to be factored in when determining what your true cost to produce the item is. Number four, you need to come prepared with an understanding of what your true factory costs can be, your target cost and your margin. Azhelle (16:45): Uh, remember that because of the extra logistics and labor costs and sourcing costs, USA made products are going to cost more. So you'll have to make sure that when you're determining your margin that your cost to produce the item includes the factory's labor cost as well as the cost of any special materials delivery, courier service or testing that you may also need to include. Now, if the word margin had you running to dictionary.com or calling out to your Alexa, you're going to want to jump back to episode three to learn what I'm talking about. Okay. Number five, testing. You know, it's likely the factories that you're going to find through makers row won't have too much experience with toy testing labs, but you should ask them what testing labs they've worked with in the past. You know, um, what has been their process of sending items for testing?Azhelle (17:40): Um, is that something that they can do for you or is that something that you need to do once they send you a pre-production sample for approval? Now, again, if this industry is throwing you off, go back to episode three. All right. Um, number six, a timeline. Now every factory has a busy season. So during your visit, it's really important to determine what theirs is. You want to ask them how long production typically takes during their busy season and off of it. Number seven, you want to ask to see a sample of their work. Usually the factory when you're there will be busy with workers working. So just ask to see something that has been manufactured of similar materials and with similar techniques to the item that you are having quoted. And finally, number eight, now since we're in America, you can be ready with your NDA. Azhelle (18:37): Yes, it works here. If you don't know why I'm making a big deal out of that. It's because back in episode three, we learned about an NNN Um, but here you can use your NDA. Now to get that signed. Your best bet is, is really just, it's a sales tactic, but, it's just to presume that the factory will sign it. You know, tell them something like, Oh, I'd love to get started. Everything looks so great. Let's just sign this agreement and get going. And then you just present them with the NDA. Now if the factory refuses or hesitates, it's up to you to decide whether or not you want to work with them. You can push them on and depending on your, how many pieces you're making, um, they may be more or less open to it, but also they might have an issue with how complicated your NDA is. Azhelle (19:25): So you could opt to find a simpler form or simpler version. Just sometimes if it's a little bit too wordy, there's too much legalize. Um, you can understand that a small U S factory might get a little tense around the idea of signing something like that. Okay, so now our next step after finding your factory, asking them all of the questions you need to ask, showing them your product and starting a quote, you're ready to move on to developing your product. Now, developing a product with a U S factory is just much more efficient than working with a Chinese factory because you're already here and you can email the factory back and forth with the added benefit of being in the same time zone, which means you're guaranteed to get responses back a lot quicker. Not to mention how easy it will be for you to visit your factory in case they have any questions or problems with producing your item. Azhelle (20:23):Now often US factories are not going to entertain your project without a detailed spec packet or detailed specification sheet, explaining exactly what your product is. They are not going to do the work for you, but once you give them the information that they need about your product, you can expect to have pricing within one to two weeks and you can move right to sample making. Now you'll go through one to two samples about to just review quality and construction and usually you'll get invoiced for each sample separately. I would recommend visiting if you can the factory in person every time you get a sample to take your time to talk with the factory owner or the representative who's working with you and that way you can make comments so that no details are missed. Now once you approve a sample for production, you are going to want to submit a purchase order. Azhelle (21:20): Now once you've completed your work with the factory and you've reviewed a sample that is perfect and you think it's ready for development, I would suggest you fine tune your product specification sheet or packet so that every detail in it mimics and matches the final approved sample. You could photograph the sample and add photographs of it to the specification packet or sheet and remember, or if you're hearing this for the first time cause you haven't heard episode three, this is your golden guide to production of your product. So make two if you can, one for you to keep and one for the factory to keep. Now, once you approve a sample for production, you are ready to submit your purchase order and the factory after receiving the purchase order is going to return an invoice for you to pay. Now as I said in more detail in episode three, you can define terms for payment and endless things like percentage of defective product that's acceptable if any. Azhelle (22:25): And these are details you're going to just want to make sure you specify in your purchase order or your work agreement to make sure that when you're delivered the product, that the finished product is meeting your expectations. So for more detail on this, I have to refer you back to episode three, but I'm going to give you a time to look for, go back to minute 26 23 and that's where I started talking about submitting a purchase order. Okay, so give it a listen. You don't want to miss any details. It's a really good clip. Now once production is underway, you can also request to see samples from the top of the production run. Now I mentioned that in the previous episode that you can do that when you're working with an overseas factory, but it's even easier when you're working with a domestic one. Azhelle (23:10):So you can be asked to be notified when the first batch is done and you can get yourself over to the factory and just have a chance to look at a product as it's coming out of the line and make final adjustments or final comments or just feel more secure that everything is being produced to your specifications. All right, toy people well that is everything I wanted to share with you about manufacturing in the USA. I hope you find makers row to be just an indispensable resource in your making of either or prototypes or production. Hopefully with all of the information in this episode, you'll realize that finding a factory in the United States is not as impossible as you might have imagined. It's a very doable task if you know not just where to look, but how to look. This episode means a lot to me because it was requested specifically by my listeners. Azhelle (24:12): I'm really grateful to already have a support even just after a few episodes. And I would love for you guys to continue to reach out to me via social media, email or wherever you're finding me. IG, and just let me know what aspect of the toy industry you would like me to talk about more. I'm here for you. So before you go, please leave a review on iTunes or Apple podcasts. I really enjoy reading them. It encourages me to just continue delivering stellar content week after week. As a thank you, I also have a fun little giveaway for you guys. I have adorable little toy coach, robot stickers, which you can get for free if you head on over to the toy coach.com just click get a free sticker at the top of the page and submit your info and I'll send you one. Azhelle (25:07): Come back next week on Wednesday when we're going to talk about the international New York toy fair. The New York toy fair begins Saturday, February 22nd and is held at the Jacob Javits convention center in NYC and it is the most crazy fun time of the year for us toy people, myself, my company and my dear friends have all been so busy preparing for this massive trade show. So if you're really interested in York toy fair but you haven't had a chance to attend yet, next week's episode is going to be perfect for you. I'm going to talk about the benefits of attending toy fair, the drawbacks, the cool things to see the things you shouldn't do, the things you should do, and just cover everything I can to prepare you either for attending the show this year or maybe for preparing to register and showcase your product next year. So thanks for listening. And until next week, I'll see you later. Toy people. Jingle + Outtro (26:09): Thanks for listening to making it in the toy industry podcast with Azhelle Wade. Head over to the toy coach.com for more information, tips, and advice.
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