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THE MILLION DOLLAR CASE STUDY
Session #6:
Reviewing Samples & Choosing A Supplier
Journey to $1mil - 100% for Charity
March 29th, 2017
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Where are we?
▸ Decided on a Product: Baby Hooded Towels
▸ Contacted 21 Suppliers▸ Requested & Received 3 Samples▸ Had Follow up Conversations with 3
Suppliers
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▸ Communication: ▹ Responsive▹ Thorough▹ Good English Skills
▸ Product Quality▸ Pricing▸ Intangibles
▹ Proactive Supplier▹ Good track record (existing customers)
Criteria For Our Ideal Supplier
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Improve Targeting (boy, girl, neutral)Offer a Variety of colors
Premium Quality 100% BambooThicker, More Luxurious
Bigger Size (90x90cm)longer usability
Added ValueInclude a washcloth
Baby Hooded Towels: Our Positioning & Marketing
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Good Factory 1
▸ Good communication▹ 8/10 with Responsiveness & English
▸ Supplier for a top listing (with good product reviews)--good quality control
▸ 3 swatches (400gsm) very soft and silky▸ $5.40 FOB (before negotiating) for towel, box and label
▹ $0.655 USD/pc for 30cm x 30cm wash cloth▸ Lead Time: 30-35 days▸ Caveat: Can’t do 500gsm unless we purchase 6000pcs
Small MOQ must be 92% bamboo (400gsm) or 70% bamboo/30%cotton (380gsm)
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Good Factory 2
▸ Good communication▹ 10/10 with Responsiveness▹ 9/10 with English
▸ Hustler, willing to make stuff happen, ie recommends included a washcloth made of waste material for $0.35 more
▸ $6.09 FOB (before negotiating): towel, washcloth, tags, and nice packaging
▸ Lead Time: 25-30 days▸ Received two samples, 400 gsm, in two sizes: 75x75
cm and 90x90cm
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Good Factory 3
▸ Good communication▹ 8/10 with Responsiveness▹ 8/10 with English
▸ $7.03 FOB (before negotiating): towel, washcloth, tags, and nice packaging▹ Getting new quote for 90x90 cm 500 gsm bamboo
▸ Lead Time: 25-30 days▸ Received 3 samples:
▹ 400gsm 100% cotton▹ 500gsm 100% bamboo▹ 70x140cm rectangle
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A Review Of The 3 Suppliers
Supplier 1 Supplier 2 Supplier 3
Overall Friendly and helpful, just no small MOQ with 500pcs Hustler, willing to make stuff happen Friendly and supportive, not moving on
price, playing up product quality
Product Quality Good quality, supplier for a top seller. Swatches are exceptionally soft Good quality 500gsm 100% bamboo could create
the most premium branding
Price0.655usd/pc for 30cm x 30cm wash cloth & 5.4usd/pc for towel, box and
label
Before negotiating, $6.09 FOB - towel, washcloth, tags and nice packaging
Before negotiating, $7.03 FOB - towel, washcloth, tags and nice packaging
Lead Time 30-35 days 25-30 days 25-30 days
Communication 8/10 9/10, very responsive 8/10
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Challenges: Additional Consumer Safety Testshttps://www.cpsc.gov/business--manufacturing/regulatory-robot/safer-products-start-here
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Decisions, Decisions!
▸ Get Final Negotiated Prices/Minimum Order Quantity
▸ Draft/Sign Purchase Order Agreement▸ Place down payment▸ Find Third Party Inspection Service
I LIKE THIS ONE =)
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JOIN US:Wed April 5th @ 5p PT for Webinar #7: Package Design & Branding