Manufacturing Playbook

Hey! 

Welcome back to another edition of the Up Next newsletter, where we dive into the crazy world of launching and scaling profitable brands. If you’re a first-time reader, thanks for joining us!

Below are a few of our recent newsletters I think you might enjoy..

• $100 Million Dollar Household Storage Brands

• The Ultimate Guide to Product Pricing

• How 8-figure brands use storytelling to acquire customers

Today, we’re breaking down the comprehensive steps to take your idea from concept to market-ready product. Many of you have responded to our polls and emails requesting help with getting product manufactured (or going from zero to product)

Let me know below what challenges you're facing:

Below I’ve outlined the 10 essentials of getting a product manufactured, focusing on a low risk, high reward outcome. Buckle up, because we’re going to cover everything from finding manufacturers to ensuring quality control, and how to determine product market fit and demand.

Let's jump in 👇👇

1. You Have an Idea You Want to Bring to Market

First off, congratulations! Having an idea is the first step towards building something amazing. This is where most people stop. The first step is simple: start looking for proof that your product is viable, has demand, and people would buy it.

I've mentioned this before, but there's a great book called "The Mom Test" that goes through simple validation practices.

Another more in depth book I recommend is Testing Business Ideas. It’s more in depth and focuses on different industries but the principles work well across many products.

The goal is to find if people would actually buy your product. Not if they like it or think it's cool, but will they hand over money to you to build it.

We've previously touched on pre-selling and raising money, but for the sake of keeping things simple, the first step is to simply find demand.

2. Finding Manufacturers

Realizing It’s Doable

The prospect of manufacturing can seem daunting, but it’s more accessible than you might think. The global marketplace offers a plethora of resources to find the right manufacturer for your product.

Manufacturing Resources

• Alibaba: This is the go-to platform for many entrepreneurs. It connects you with manufacturers from around the globe, particularly from China. You can find manufacturers for virtually any product, compare prices, and read reviews from other buyers.

• U.S. Websites: For those who prefer manufacturing in the U.S., websites like ThomasNet and Maker’s Row are excellent resources. They list verified manufacturers and suppliers, making the process of finding a reliable partner easier.

Side Note: Understanding Tariffs and Import Taxes Are Vital

Navigating tariffs and import taxes can be tricky, but there are resources to help you. Websites like Trade.gov offer detailed information on tariffs and taxes for different products and countries. Be sure to factor these costs into your pricing strategy to avoid any unexpected surprises later on.

3. Start Your Trademark Process

Trademarking in the U.S.

As most of you know, a trademark is a piece of intellectual property that distinguishes your brand’s logo, name and slogan from others in the marketplace. It’s vital to have this in place to ensure that no one copies your brand after it’s successful. It also ensures you’re not stepping on any toes that can come back to bite you in the form of costly litigation.

I’ve heard of horror stories where brands are set up and ready to launch but find out their trademark was not approved or has a very low chance of approval. Get it done and out of the way early.

The best way to do this is to use an attorney who specializes in trademark law who can help you understand how to categorize your products and brands within the appropriate classes.

There’s also a strategy to trademarking that a good attorney can help with. For example, a broader name such as “Chocolate Cupcake Shop” has a lower chance of approval, but offers a much broader coverage for trademark infringement from competitors.

A trademark such as “Charlie's Chocolate Strawberry Cupcake Truck Stop” has a higher chance of approval but has less coverage.

Also, please don’t steal that as I’m looking to build a Cupcake Truck Stop empire. Reply to this email for investment opportunities.

Trademarking in China

There’s a little known, dirty secret in ecommerce that companies will file for your trademark in China. This prevents you from exporting any goods that have been manufactured there. It’s a dirty business, but nonetheless, does exist, and you need to own your intellectual property wherever you have your products manufactured. 

This tip alone will save you tens or even hundreds of thousands of dollars. I’ve even seen the IP holders demanding a % of the cost of goods, essentially costing the business 5% of their margin before it leaves the country.

Securing your trademark early on is crucial, especially if you plan to manufacture in China. The trademark process can be lengthy and complex, but it’s better to work out any hiccups early. 

If you need a lawyer or resource for securing a trademark in China, reply to this email and I will help make an introduction to one we’ve used.

Resources for Trademarks

• USPTO: The United States Patent and Trademark Office is your starting point for trademarks in the U.S.

• China Trademark Office: For trademarks in China, you’ll need to navigate the China Trademark Office. It’s advisable to hire a local attorney who understands the intricacies of Chinese trademark law.

4. Selecting a Manufacturer

Start with Samples

Begin by requesting samples from 5-7 manufacturers. This allows you to compare quality and assess their capabilities. Typically, you’ll notice that the quality of 1-2 manufacturers stands out. Equally important is the communication and focus of the representative you’re dealing with. A rep who is committed to getting the product right is invaluable.

Key Considerations

• Quality: Look for consistency and attention to detail in the samples.

• Communication: Ensure the rep is responsive and understands your requirements. This will be crucial as you move forward and work with them long term.

5. Working with an Engineer

Understanding Manufacturing

An engineer who understands manufacturing is a must. Ideally, they should be willing to communicate directly with the manufacturers via WhatsApp, Skype, or WeChat. If you’re acting as a middleman between the engineer and manufacturer, it can present huge challenges. There’s often a difference between a CAD sample and the final manufactured product. Ensure your engineer is capable of bridging this gap.

Low Risk Manufacturing

Consider using broken CADs. Unfortunately, manufacturers will steal CAD’s and claim the product as their own, then sell it to other potential buyers. In this instance, we use broken CAD’s as a form of protection. It won’t actually create a finished product. It will provide the same end result; determining if a manufacturer is able to create a finished product based on the requirements in the CAD.

Once you have approval from a reputable company, you’re able to send the real CAD’s. In addition, you'll want a contract or clause that you own the rights to the CAD, tooling, samples and all intellectual property around the product.

6. Contractual Clauses

Ownership and Penalties

When drafting contracts with your manufacturer, include clauses that ensure you own the tooling, samples and intellectual property related to the product. Specify penalties, up to $250,000, for any breaches. This protects your investment and ensures your proprietary information remains secure. 

To be completely honest, this may not even hold up in court, but it prevents 99% of manufacturers from even thinking about breaching it. In my experience, this is not a huge concern and almost all factories I’ve worked with over the years have been fair. However, it's a good idea to have insurance and protection in place.

Factories are in the business of making and exporting goods, and keeping their employees working. When you’re successful, so are they.

7. Sample Testing

Customer Feedback

Once you have your samples, test them with a small group of 15 to 20 customers. Collect feedback on the product’s performance, usability, and overall quality. This feedback is invaluable for making final adjustments before mass production.

Typically, with only 20 customers, survey data becomes irrelevant. We try to have a one to one conversation, looking for ways to improve the product as well as how to improve the user experience. Often, a quick change in the tutorial or instructions is all that you'll need versus a complete redesign.

We’re creating a template of documents, sample contracts, SOPs, negotiating scripts and checklists to get your product to market as efficiently as possible. If that’s something you’re interested in just reply to the email and let me know.

8. Small Batch Testing

Low Minimum Order Quantity (MOQ)

We often try to start with a lower MOQ before we sink a ton of money into a product. To be honest, this can vary quite a bit depending on the materials and how much tooling and customization is involved. It might be challenging to negotiate this initially, but it’s essential for managing risk and validating demand.

For more customized products, the MOQ often starts at 1,000 pieces. This phase is also an excellent opportunity to begin pre-selling and proving product market fit.

Negotiation Tips

• Be Firm but Fair: Negotiation is crucial. Ensure you get the best terms without being unreasonable. This fosters a good working relationship with your manufacturer.

9. Pre-Production Testing

Rigorous Testing

Before full-scale production, conduct rigorous pre-production testing. Ensure the product doesn’t break and meets all quality standards. This phase is critical to prevent costly mistakes during mass production.

Why do we need another set of testing? The sample products are different from those that come off the manufacturing line. The latter is more automated with less attention to detail when you’re pumping out thousands of units at a time. 

This is where we test 50 units at the production level to ensure the remaining 950+ will remain fine. You will only have to do this test on the initial, first-time production run. All remaining runs after that, you can use a QC agency (mentioned below), to complete the testing.

10. Quality Control - Test Your Units Before Shipping

Hire a Reputable Agency

A reputable QC agency will go to the factory and review the products on your behalf before they’re shipped out. The last thing you want is hundreds of broken or low quality products arriving at your warehouse.

Quality control is the name of the game whether you’re starting your business or full on scaling up. Provide an agency with clear instructions on what to inspect and how to go about it. They're working based off your feedback and guidelines so make sure you're thorough and detailed.

These instructions and checklists will come from the previous testing that didn’t pass the eye test from you or your product testers.

Ask for pictures, checklists, and detailed answers before you give the okay to ship them. This ensures that every product meets your standards before it reaches the customer.

Wrapping Up

As you can see, bringing an idea to market is a complex journey.

Communication and quality control are critical throughout this process. The path from idea to market-ready product requires patience and planning. This guide should provide a general overview of what the process looks like, but do not rush it. The process can often take 6 months but doing it right is well worth it.

I hope you enjoyed this guide and it gave you some insight on how to bring your product to market. Reply to this email, shoot me over your feedback, and let me know what you think.

Talk Soon,

-Ken

P.S. I’m opening up 2 slots per month for 1 on 1 consultation calls for brand owners looking to launch new products and acquire customers.

We’ll send you a Google Docs sheet to fill out to get more information about your brand. From there, we’ll research your brand, market, and put together a plan for you; there are only a couple of spots, so if you’re interested, you can book it below..

—> Click Here to book a 1-to-1 call with me