How This Inventor is Making Her Dream a Reality

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Finding Factories to Make Your Invention
October 4, 2017
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Treating Your Idea Like a Business
October 4, 2017

 
If you invent products or have a start-up that's ready for retail, the Get Retail Ready podcast is THE place to hear stories and gain knowledge with the Get Retail Ready guy Jim DeBetta! Jim is a renowned retail selling expert having sold over 100 million dollars worth of products to the world's leading retailers! Knowing the ins and outs of preparing to and selling to major retailers takes knowledge, experience, and enthusiasm. Join us each week to get the inside scoop on how to make YOUR invention a success! www.weknowbusiness.info The Inventors Launchpad – Roadmap to Success Series is presented by Inventors Launchpad in beautiful Tampa Bay, FL and hosted by Carmine Denisco. Carmine is an accomplished Author, Entrepreneur, Inventor and Co-founder/Managing Partner of Inventors Launchpad. Along with his business partner Rick Valderrama has changed the face of the invention industry and look forward to helping inventors from all over the world move their ideas forward. For more information please visit www.inventorslaunchpad.com

Watch the podcast here!

Podcast Notes

1You Tube Transcription
hi everyone and welcome to the inventors
0:03
Launchpad Network
0:05
I am carmine danesco your host for
0:08
today's show
0:09
getting retail ready I have my co-host
0:13
mr. Jim de bettah the licensing the
0:15
licensing expert the retail expert take
0:18
it all I think but he's definitely the
0:21
retail man and hey Jim what's happening
0:24
over there are you going crazy this
0:25
weekend I hear ya football season's here
0:28
so you know we really enjoy that and you
0:32
know going to games and watching game
0:34
whatever I mean it's it's a it's a busy
0:36
time so you know the posts swarm stuff
0:39
too just trying to you know get back in
0:41
the groove a lot of people a lot of
0:42
buyers just everybody even though it was
0:45
a 1 or 2 state event it seems like the
0:48
whole country was paralyzed by it so
0:50
just getting a hold of people was tricky
0:53
last week so hopefully this week
0:54
everybody gets back in the swing of
0:55
things and you know it you know gets
0:57
back to normal to some degree anyway
0:59
yeah yeah I think that you know they're
1:01
wondering if people they know people in
1:03
the states or they're watching the news
1:04
because like you said even the news is
1:06
that's all they're covering and and a
1:09
lot of people are interested in the
1:11
power of these storms and you know
1:12
Houston had just gotten hit and then
1:14
Florida so I think it might have been a
1:16
double whammy there yeah there's no
1:18
doubt I mean so it seems like people
1:21
have kind of settled back into I mean
1:23
obviously not the people that are
1:24
affected but I mean just in general it
1:26
seems like it's more calm so hopefully
1:29
you know people getting back to you know
1:31
normalcy to whatever degree that is you
1:33
know but you know from a business
1:35
standpoint it looks like most people are
1:38
you know getting back to normal at least
1:41
in in my world anyway yeah yeah business
1:43
is always stagnant for so long man you
1:45
know that yeah nothing stops it yeah
1:48
fortunately variety it keeps going you
1:50
know but it is a blip here and there but
1:51
I mean sure the world ending as we know
1:54
it right I mean people will keep going
1:56
so you went to the Georgia game hey
1:59
how's that place crazy up there right
2:01
yeah it's um you know 93 thousand people
2:05
I mean you know it's an experience if
2:08
you've never gone like I say to people
2:10
if you've never gone to something like
2:11
that I know you
2:12
the games but you know it's something to
2:14
see that even if you don't like football
2:16
I mean anywhere where there's a hundred
2:17
thousand people almost you'll crammed
2:20
into something that's you know it's cool
2:23
yeah no I hear I've I made mistake
2:25
you're going to visit a client on time I
2:27
think it was a year or so ago I went to
2:30
Lincoln Nebraska but I went at the wrong
2:32
time on a Friday or a Saturday I forget
2:35
I was pulling into the city and it was a
2:37
home game and that town was at a
2:42
standstill I mean there were so many
2:44
people in Lincoln Nebraska I think it
2:46
grows it's like the one of the smaller
2:47
towns and then it grows to like the
2:49
first or second largest city everything
2:53
they all everyone stops yeah works I
2:56
mean everything revolves around sports
2:58
in some places I mean especially in
3:00
small towns where it's a big deal so
3:02
yeah it is a standstill
3:04
you won't nothing will get done for that
3:06
moment or you know that time when
3:08
there's a game going on or you know
3:09
pregame postgame whatever yeah it was
3:11
crazy I usually go in a few days early
3:13
or I was going in early for some reason
3:15
and I had the meeting on Monday and I
3:17
went in early that's it yeah if you're
3:21
watching the game with everybody else so
3:22
you're just sitting by yourself
3:23
basically
3:26
but yeah so got a show today I wanted to
3:29
do had a couple clients contact me and I
3:33
know you get calls a lot on you know
3:36
finding factories and and how to go
3:39
about finding factories and you know I
3:42
think it's one of the most important
3:43
things if you get a person that wants to
3:46
manufacture their product themselves or
3:48
and go to retail and is that something
3:50
that you get questions about if somebody
3:53
approaches you and says hey Jim you know
3:55
I'm looking to get my product into
3:56
Target or Walmart or whatever how
3:59
important is that factory to that's
4:03
gonna make the product I mean how
4:05
important is it it's everything I mean
4:08
if you can't get your product made right
4:10
or made it all you don't have a product
4:12
I mean so you know at the heart of every
4:16
product launch there's a factory that's
4:19
making your invention somewhere wherever
4:22
it is in this world it's a question that
4:24
obviously it's
4:26
it's part of the process you cannot go
4:28
to market without product being made and
4:30
you can't make it all at home so you
4:33
know but people have different ways and
4:35
means to to find them yeah and you know
4:39
again here at the launch pad and I know
4:41
you the same way everyone the first
4:43
thing we need everyone talks about is
4:44
manufacturing they think of Asia China
4:47
Philippines you know in that sense but
4:50
you know as you and I know there's a lot
4:52
more involved in picking a factory then
4:56
just you know who could do it the
4:59
cheapest because sometimes as you and I
5:01
both know the cheapest isn't always the
5:04
best price at the end yeah and you know
5:07
here's the here's the problem that you
5:09
run into obviously retailers want the
5:11
best price right and as inventors we
5:14
want to make the most money when we sell
5:16
it to either a retailer or on our
5:18
website so your pricing ultimately
5:21
becomes you know and sometimes the most
5:24
important factor but as you said it
5:27
doesn't always dictate you know that you
5:30
know that's the ultimate thing you need
5:31
a quality is it's just as important to
5:34
you know having the best price and the
5:36
best quality is what we strive for and
5:38
you know unfortunately in some countries
5:41
like the United States it's difficult to
5:43
achieve both yep exactly and again we'll
5:49
go back and and talk about it
5:51
there's only three ways you can get a
5:53
product and that's cheap fast and good
5:55
but you can only have two of those two
5:57
Rick you can't have all three you know
6:00
so you can have you can have a product
6:02
cheap and fast or you can have it fast
6:04
and good but you can't get a cheap he
6:06
does so right and sometimes sometimes
6:09
you know when you have connections to
6:12
factories you can you can get you can
6:14
come close to getting them all I mean
6:15
you know in a lot of you know so let's
6:18
let's work backwards right so somebody
6:19
that has a product that's out there on
6:22
the market doing very well it's selling
6:25
well at retail it becomes a brand name
6:26
at some point way way back in the
6:29
beginning that person couldn't afford to
6:32
make hundreds of thousands of pieces or
6:34
millions of pieces the way they are
6:36
today so they have to start somewhere
6:38
I mean you know this
6:40
you do a lot of short-run manufacturing
6:42
the number one you know biggest
6:44
roadblock for inventors when they start
6:46
especially being money is such an issue
6:49
is that they can't afford to make the
6:52
minimums of some of the factories
6:55
especially in the United States where
6:58
minimums you know not not necessarily
7:01
always higher but the cost is generally
7:03
higher so if you need a thousand of
7:05
something and it costs $5 five thousand
7:08
dollars but if it's $10 or $15 for that
7:11
same thing now you're getting into some
7:13
some higher dollar amounts so that's a
7:15
difficult thing for people hmm
7:16
yeah it is there's no doubt about it and
7:18
and both I know Jim and you and I both
7:21
recommend even if you can't afford it
7:23
not getting 10,000 20,000 50,000 units
7:26
of anything that's going to be the first
7:28
design or the first run because just
7:31
like a lot of products there on the
7:33
market including the iPhone you're gonna
7:35
have multiple versions and you're gonna
7:37
think of new things are you gonna have a
7:38
design flaw I mean there's cars that
7:41
have recalls I mean you know if you
7:43
think that you even NASA engineers you
7:45
know there's rockets that explode you
7:47
mean you have Mars rovers that that fail
7:49
if you think you're a better design or a
7:52
better engineer than NASA or these car
7:54
manufacturers don't think that way just
7:56
know that you are going to have new
7:58
versions or updated versions of your
8:00
product yeah there there are websites
8:02
dedicated to recalls product recalls
8:05
simple things I mean yeah I was in
8:07
Walmart recently returning something and
8:09
when you're on that line on I remember
8:11
the far-left well they have a whole wall
8:13
dedicated to you know like sheets of
8:16
paper but they have product recalls on
8:18
each sheet
8:19
I mean it's dozens of things you know
8:21
baby products food products electronics
8:23
everything in anything like you said
8:25
there's always something and when you
8:28
get into mass production if it's not
8:29
done right and the you know in the first
8:31
place you have a much higher chance of
8:34
having recalls so that's a big issue but
8:38
I think you know the big thing that
8:39
people first come to me like the number
8:42
one thing when they reach out to me and
8:44
they say you know I've got a product and
8:46
I need it made they say where do I go to
8:50
find a factory and the first thing they
8:53
usually suggest
8:54
to me even though they're asking me is
8:56
this a should I go online should I find
8:58
a factory online and you know to me the
9:00
answer really is no
9:02
yeah yeah be and again because your ear
9:07
a million percent right this is such a
9:08
touchy subject and it's kind of scary
9:11
you could do research and I'm not
9:12
against research and you can learn and
9:14
you can really do things but to choose a
9:16
factory online without ever really
9:19
seeing them what they can do talking to
9:21
them it's uh it's not a good idea you're
9:25
exactly right yeah I mean and there are
9:27
various websites and it's I've said it
9:30
on other podcast here and other other
9:33
shows it's the Wild West when you're
9:35
online there's really nothing to
9:37
regulate how the quality is going to be
9:41
from somebody you find online and that's
9:43
no different than just doing business
9:44
with anybody if you just kind of shoot
9:46
in the dark you know you might get lucky
9:48
and do great but there's a better chance
9:50
that you won't and when it comes to
9:52
making your product like we said you
9:54
can't you don't have a business without
9:55
your product if you go online and you
9:59
jump on a website and it looks great and
10:01
it sounds good and you send them money I
10:04
mean they could send you a box of rocks
10:06
back I mean you have no reference points
10:08
I always tell people look the way to do
10:11
this is to work with factories either
10:13
that we know or work with factories that
10:16
others have worked with that they can
10:18
vouch for yeah yeah you have to when you
10:20
when you're gonna send when you send a
10:24
few dollars over there for information
10:25
and you get a sample and it cost this
10:28
much money but when you're gonna send a
10:30
large amount of money overseas to say a
10:34
communist country or not a communist
10:37
country or a country that we don't have
10:39
relations with or that's 80 thousand
10:41
miles away 12 hour time difference you
10:44
really know have to know where that
10:47
money's gonna go
10:48
yeah and it's believe me we've both
10:52
heard stories not once or twice either
10:54
sadly people sending tens of thousands
10:57
or more and getting either nothing
11:01
literally zero or they will get you know
11:05
a product that it was just so different
11:06
than either like the original prototype
11:08
or they you know they get the product
11:10
and the packaging is just all messed up
11:12
I mean there are just so many things
11:13
that can go wrong and so I tell people
11:15
again
11:16
you can go on I mean there are sites
11:18
like Alibaba right I mean it's a huge
11:20
entity there's a lot of great factories
11:23
on there there are but there's a lot of
11:25
factories on there that aren't so great
11:27
do you want to take a chance I mean it's
11:29
like it get like okay calm it some
11:30
breaks in your house right you know you
11:32
need a plumber or whatever electrician I
11:33
mean you go online or you just ask your
11:37
neighbors people that have had that work
11:39
done and you say who do you use all
11:41
their great yeah use them all right and
11:43
and that's that doesn't mean a hundred
11:45
percent guarantee that they're not gonna
11:47
screw something up your house or height
11:48
but it's probably a 90% chance
11:51
everything's gonna go well but if you
11:52
just you know open up you know your
11:54
laptop and look online I think it's more
11:57
like 50/50 you don't know what you're
11:59
gonna get even if there are ratings and
12:01
all that stuff there's nothing like you
12:04
know that human you know contact or
12:05
experience to suggest what you know
12:08
might be better so I think that's step
12:10
one that people have to work with people
12:11
that have worked with factories yeah no
12:14
you're exactly right and again do your
12:17
graphical geographical countries or one
12:22
thing using China or the Philippines are
12:23
using different country but you have to
12:25
also look at the product to where what
12:27
type of product it is where it should be
12:30
made I could tell you that if you have
12:32
some t-shirts or you want some kind of
12:35
clothing made you might even look at the
12:36
central Central America South America
12:42
you know because they have some great
12:44
you can look at Bangladesh there's
12:46
different places that are going to give
12:48
you different deals but through laws and
12:50
rules and taxes are all different in all
12:52
those countries I mean we we make
12:53
products in Bangladesh in Turkey in
12:55
South America Honduras Guatemala but all
12:58
of those need to have you have to have
13:01
some knowledge on what you're doing with
13:02
that I mean if you go with Central South
13:04
America or North America you can use the
13:06
NAFTA and CAFTA laws to save on taxes
13:08
they'll on fees save on customs but the
13:10
product has to be 85% made in that
13:13
country whereas if you go to Bangladesh
13:15
you're gonna pay customs fees go to
13:17
China you're gonna pay custom for you so
13:18
you should really look up those fees
13:21
because you could get a low price in
13:23
China or Bangladesh or Turkey but when
13:25
it comes here to the US you may get hit
13:28
with custom fees and that also
13:30
brings that product cost higher so it's
13:34
not only the price and that's why you
13:35
know and that's why Jim is stressing to
13:37
really do your homework on the factory
13:39
it's not just about the manufactured
13:41
price it's about the logistics and about
13:43
landed cost getting that product
13:45
delivered to you and of course if it's
13:47
the right product its money it's really
13:48
important yeah and you know you know a
13:51
good way to kind of tie that outcome I
13:52
think people will appreciate this if
13:54
you're making money you're making
13:55
t-shirts right you can jam like 100
13:58
t-shirts in a you know you know
13:59
relatively small box but if you're
14:01
making furniture like beds or whatever I
14:05
mean you know sometimes that's better
14:08
to make it locally because the freight
14:11
costs so all right so let's give
14:12
everybody example let's say you're
14:14
making bed frames okay and I'm making up
14:17
a number there $50 to making the United
14:19
States okay
14:20
just animate of that and let's say
14:22
you're in Florida and and they're being
14:24
made in New York all right so let's say
14:27
it costs you know I'm making up numbers
14:30
20 bucks on average when you order a few
14:33
thousands it to ship them down okay
14:35
now you're at 70 bucks if you have that
14:38
same piece made say in China and it only
14:41
costs $35 like wow I'm saving 15 bucks
14:44
do you know how much it's gonna cost you
14:45
to ship a bed frame over from China it
14:48
could be it could in it would be more
14:50
than the cost of the product so
14:52
initially you think you're saving money
14:54
one way but you have to look at the
14:57
shipping the shipping and like you said
14:58
these extra duties you know when you
15:00
import something into the United States
15:02
from another country the United States
15:03
likes to attach duties to it right so it
15:05
could be 2% it could be 5% it could be
15:08
20% it could vary it depends on the
15:10
product category so now add that on top
15:12
of right of the freight cost and now
15:15
suddenly like you know is it worth
15:17
making it over Caesars at work we're
15:19
thinking here I think you have to look
15:20
at it so that's a big factor the other
15:23
thing you know I want to be able to tell
15:25
people about this this is a good little
15:27
thing is people always say to me Jim
15:29
the next thing they always ask is should
15:31
I make it here or should I make it
15:32
overseas and but their concern isn't
15:36
always price carmine their concern is
15:39
you know am i doing the right thing by
15:42
making something here and supporting
15:44
the United States or my you know and
15:47
people get you know they take a hard
15:49
line on this so here's what I want to
15:50
tell people about that okay I always
15:52
tell people look if you're a startup
15:55
business and you make something in the
15:57
United States to you know with the
15:59
intent to support our economy but you're
16:02
paying too much for the product and then
16:04
it's not resellable because it's too
16:07
high-priced to US retailers or even on
16:09
your own website and you ultimately go
16:12
out of business right you're actually a
16:14
hindrance you know you're hurting our
16:16
economy because you're not firing people
16:18
you're not moving goods and services
16:20
right throughout you may wind up going
16:23
on unemployment because now you don't
16:25
have a career or a job right but if you
16:28
make that same product overseas even
16:30
though you may not want to or think it's
16:31
the right thing to do and that's all you
16:33
have overseas do they just make it but
16:36
you run your business here in the United
16:37
States and now the product is priced
16:39
well and people are buying it what
16:41
happens you make money you spend money
16:43
locally you know restaurants or stores
16:45
so you're promoting business within the
16:47
economy maybe your business starts to
16:49
grow now you'll have to hire a couple
16:51
people now you're supporting people so I
16:53
have some people think of it that way
16:54
don't think of it as oh you know I don't
16:56
make stuff overseas I want it to be made
16:58
in the USA you know it actually works
17:01
against you if you don't think of it
17:02
that way well that's a gym that's a
17:06
really good point just to what you're
17:09
talking about because the product itself
17:12
sometimes isn't is it really the costly
17:14
part of it it's if you're renting a
17:16
location if you're hiring people like
17:18
you said all that money and things that
17:20
you're doing are here in US and if you
17:21
hire a local logistics person like a
17:24
shipping company that's here in the US
17:26
then you're you're actually spending
17:28
more money here in the US and that
17:30
product is being made for if you're
17:32
getting right price obviously as people
17:34
forget too that you know labor costs
17:35
here are a lot more than most other
17:37
countries so you know and but people
17:39
think that well yeah but you know maybe
17:41
it's a sweatshop type environment
17:43
overseas no this is we're working with
17:45
people that have relationships with
17:47
factories and makes a huge difference
17:49
we know the factories met are legitimate
17:53
they are they're not abusing people
17:55
they're not hiring little children
17:58
you know 18-hour days and and good
18:00
factories will allow you to go over and
18:02
visit them and inspect you know their
18:05
their facilities and that's a comfort
18:07
right so I mean now unfortunate lot of
18:09
inventors either can't afford it or
18:10
don't want to you know go over overseas
18:12
to go look at the factories but I have
18:14
clients that do and you know they see
18:17
that you know they're the conditions are
18:19
fine and they're clean and they're safe
18:21
and people are being fed and they're not
18:23
you know they're not being overworked
18:25
but you know obviously there's an army
18:27
of people making product and that's fine
18:29
and that's like how it is here too but
18:31
you know there's a lot of misconceptions
18:33
coming about what goes on and yes
18:35
there's a lot of those things that do
18:36
happen there's a lot of abuse I've seen
18:39
it you know it overseas like you have so
18:42
again it comes full circle to choosing
18:46
to work with people that have worked
18:47
with factories that have relationships
18:49
with them that gives you that the best
18:51
opportunity to get good pricing good
18:54
quality make sure that you know they're
18:56
operating nicely and fairly to human
18:59
beings right and that's a win for
19:02
everybody right that's exactly I mean as
19:04
you said it's horrible some of the
19:06
things that happen over there and you
19:07
we've all seen it and we would never
19:09
even think about using a factory like
19:12
that and the good part about it as Jim
19:14
has pointed out i mang i've actually
19:16
with clients done video walkthroughs and
19:19
factories and we've gotten to see their
19:21
products being made in real time which
19:22
is a lot of fun that people can maybe
19:26
get a totally different perspective when
19:28
they see it being made I mean even just
19:31
in general I mean you see products on
19:33
the shelves of stores or online people
19:35
don't know what just how much work goes
19:37
into that and to go over there and watch
19:39
it being you know pumped out and
19:41
packaged and it's cool this cool it
19:43
really is it's out like you said it's uh
19:45
it is a whole different feeling and we
19:47
get pictures of the factories other
19:49
products being made and when we have you
19:52
know get photos and stuff sent over but
19:54
when you see a video or or a live look
19:57
it is really wild it is but going back
20:01
to the products it sells and and I I
20:03
here at the launch pad we use China a
20:05
good 80% of the products that we make
20:07
but we also really look through it so
20:09
it's a plan it's a process
20:11
I know Jim you do the same thing when a
20:14
client comes to us and they want a
20:15
product made we really look at that
20:17
product look the materials look at what
20:19
its gonna take to make that product and
20:21
ship that product you know we've made
20:24
pillows we were making two different
20:26
pillows one we were making in Guatemala
20:29
and the other we were making in China
20:30
but we didn't fill those pillows up with
20:33
these stuffing one because we wanted to
20:35
make sure that we could control that
20:37
stuffing but also we didn't want to ship
20:40
air here you know we didn't want to fill
20:42
a container up with oh and the client
20:46
didn't realize like didn't get why we
20:49
didn't want to show the pillows till we
20:50
explained the cost to them and and then
20:53
we had them filled in South Carolina in
20:55
South Carolina and and shipped and we
20:57
ended up saving money and and it got
21:00
done a lot quicker and we got to control
21:01
what type of filling things in that
21:03
sense so again it's not just going on
21:05
Alibaba finding somebody and saying hey
21:07
can you make this product for me you can
21:09
do that you you can definitely do that
21:11
but you should have a plan you shouldn't
21:14
just jump into it if you want that
21:15
product to sell in the open market if
21:16
you want target if you want Walgreens or
21:18
somebody to buy in and put their trust
21:20
in you as a product owner a product
21:22
developer you have to take the time to
21:24
make sure that product not only gets
21:25
heated the right way but also can get
21:28
here for the right price because I mean
21:30
let's face it price is gonna be huge and
21:33
you look the retailer's have a pretty
21:36
strong sense of what the pricing should
21:38
be so they know if you're paying too
21:41
much they're gonna still tell you where
21:43
you getting this thing made or you know
21:44
you need to find it other Factory and a
21:46
lot of big retailers and vendors don't
21:48
know this carmine is that they a lot of
21:51
these retailers will actually require
21:53
that they are allowed to go inspect the
21:56
factories yeah so that that's a big
21:58
thing so some of these major chains
22:00
because they concern about you know some
22:02
of the abusive things that go on you
22:05
know they want to make sure that the
22:06
factories are operating fairly you know
22:08
and and conforming to whatever standards
22:11
that either the US government has or the
22:13
or the particular retailer has I've had
22:16
that many times where they say you know
22:17
we want to know that you have to
22:19
introduce into the to the factory
22:20
contact and they will you know they have
22:23
feet on the street and these people
22:24
chains have
22:25
people all over the world and they will
22:27
go and look to make sure because you
22:30
know yes it's it's probably not
22:32
difficult comments for us to find a
22:35
factory who doesn't care about quality
22:37
who doesn't care about standards it
22:39
doesn't care about people and save a few
22:41
cents the fact and the retailer's know
22:44
that so they want to you know have the
22:45
ability to check on you to make sure
22:48
that you are doing that right so that's
22:49
something else and you know going back
22:51
to your point you know when inventors
22:53
come to us right we don't just go China
22:56
China China you know we think of we're
22:58
open like it doesn't matter where it's
23:00
made as long as we can get it done well
23:01
the quality we can get you know a good
23:04
price so we can be competitive right and
23:07
to make sure that it's being made and
23:09
people are being treated well if we can
23:11
get all that for the most part or you
23:14
say get two of the three I mean
23:16
obviously we have to have the human
23:17
factor that that's gotta be that's
23:19
number one
23:20
mm-hmm getting you know good quality
23:23
that's obviously next and then getting
23:25
that price you know if getting it as low
23:28
as you can you know those are the things
23:30
but we'll look Paulo anywhere it doesn't
23:32
matter where in the world you know
23:34
wherever needs to be made wherever it's
23:36
best suited let's do that that's what we
23:38
do yeah
23:39
and you know what's odd is that now that
23:42
you say that a lot of the factories that
23:44
we dealt with we've we've delivered some
23:46
product to Walmart and they forced us
23:48
not and not that we were not doing it
23:50
but they forced us to use factories that
23:52
were Walmart certified so you saying
23:54
that brings back to me that's they are
23:56
you there are factories in China that
23:58
have to be Walmart certified like
24:00:00
Walmart will send representatives there
24:02:00
and inspect the factories which I
24:04:00
particularly think is great they're not
24:05:00
more expensive Walmart is making sure
24:07:00
that everything is being done correctly
24:09:00
yeah it's a Quality Assurance thing it
24:11:00
by the way I always tell people this too
24:13:00
they say well here's another thing this
24:15:00
is the other thing that comes up a lot
24:16:00
people say well if you're gonna make it
24:17:00
overseas let's say in China right
24:19:00
because that's the most common you know
24:20:00
they they don't they're not good at
24:21:00
making stuff the quality's know is
24:23:00
probably crappy I'm like let me tell you
24:24:00
something most of the things we use are
24:27:00
made there I mean like you said you know
24:29:00
you have a watch on who knows that
24:32:00
they're gonna be made there you know our
24:33:00
phones all these iPhones and Samsung
24:35:00
phones and this they're all made their
24:37:00
TVs cars
24:39:00
Jewellery I mean just things we have in
24:42:00
our home all these things are great
24:44:00
quality and China is good at making
24:47:00
stuff let's just face it so a week we're
24:49:00
great at making stuff too in the United
24:50:00
States as well we don't specialize in
24:52:00
everything but you know we typically are
24:55:00
the people that invent things right
24:56:00
we've got that kind of entrepreneurial
24:59:00
know-how here in the United States and
25:01:00
when you know we're known
25:01:00
internationally for it doesn't mean
25:03:00
we're good at making everything or being
25:06:00
cost effective so again because the
25:07:00
retail is really keen on pricing so they
25:10:00
can sell it and make money you know if
25:12:00
your pricing is way out of whack it just
25:14:00
doesn't make sense to make it here but
25:16:00
it can be made very very well in many
25:18:00
other countries and the quality it can
25:20:00
be excellent and is excellent yeah
25:22:00
you're right Jim and I liked what you
25:25:00
said at the beginning of the show that
25:26:00
you have to be in business in order to
25:28:00
help not only you and keep your business
25:30:00
running but also help you economy help
25:32:00
other people hire people and move the
25:34:00
economy along and you could put a hybrid
25:36:00
plan together where you can make that
25:38:00
product that you have make that idea you
25:40:00
have at a lower cost in China in another
25:44:00
country and then slowly move that
25:46:00
production back to the US when you're
25:47:00
buying more units so if you're buying
25:50:00
only 5,000 units and you can get a good
25:52:00
price in China or Philippines or
25:54:00
Guatemala or Honduras then you could do
25:56:00
that because you can start your business
25:57:00
at a lower cost lower outlay but then
26:00:00
when you got to buy a hundred thousand
26:01:00
units a half a million units a million
26:02:00
units you can slowly bring those molds
26:05:00
bring that business back to the US where
26:07:00
you can get a story now you get a good
26:08:00
price because you're buying higher
26:10:00
quantities again I say it's it's a plan
26:13:00
it's a process you cannot go into this
26:15:00
without having that plan and price and
26:17:00
that's where somebody like Jim comes
26:18:00
into helping you put that plan in place
26:21:00
if you just go in and say this is what
26:23:00
I'm gonna do and don't have a plan
26:25:00
you're kind of setting yourself up for
26:27:00
some hard times yeah and you know you
26:29:00
know with that too I think the other
26:31:00
other major thing that comes up quite a
26:33:00
bit is minimums people say well you know
26:35:00
I overseas it's gonna have to get 10,000
26:38:00
or 20,000 pieces and you know look that
26:40:00
happens sometimes it just depends on the
26:42:00
factory but that factory could be here
26:44:00
you know in the Unites States it could
26:45:00
be China could be Bangladesh to be
26:47:00
Pakistan India doesn't matter
26:48:00
each factory has their own particular
26:50:00
Xand obviously the larger they are and
26:52:00
the bigger their
26:52:00
clients are they're gonna attach more
26:54:00
minimums to startups because they don't
26:56:00
really need your work in many cases they
26:58:00
yeah you know what no 20,000 pieces is
27:01:00
they're busy right then they're not
27:03:00
gonna run something for you for that
27:04:00
particular factory for a thousand pieces
27:06:00
or five inch pieces but core main you
27:08:00
know this because you specialize in
27:09:00
short-run manufacturing that there are
27:11:00
enough factories out there overseas that
27:13:00
will make you know hundreds of pieces of
27:15:00
course it depends on the product it
27:16:00
depends on your commitment there's some
27:18:00
other factors that go into that but it's
27:21:00
a myth to think that you can't get low
27:23:00
minimums overseas and again if you let's
27:27:00
say the factory overseas want you to
27:28:00
make a thousand but it's you know say
27:30:00
it's you know a dollar five thousand but
27:33:00
here they all will make them for old 200
27:36:00
pieces but they're eight dollars Oh
27:38:00
I mean you so you have to weigh that you
27:40:00
know it's the cost versus the minimums
27:41:00
and you're getting the freight but it
27:43:00
people should understand that it's not
27:45:00
that's not true it just depends on the
27:48:00
particular factory and sometimes I cover
27:50:00
and if you or I have a relationship with
27:51:00
a factory we can coerce them to to do
27:54:00
lower minimums especially if we have a
27:55:00
client that we know is for real so to
27:57:00
speak because the problem with the
27:58:00
factories they get a lot of tire kickers
28:00:00
people asking well can you use something
28:02:00
blah blah blah and they don't they just
28:04:00
get tired of it so like you know what
28:05:00
this is the minimum we don't want to
28:07:00
deal with people who aren't for real
28:09:00
yeah yeah that's so right Jim you know
28:11:00
just because China is eight thousand
28:13:00
miles away or wherever it is in 12 hour
28:15:00
difference in time it doesn't mean that
28:17:00
aren't people aren't reaching out to
28:19:00
them and tell them them exactly the same
28:20:00
thing you're telling them you're
28:22:00
promising them much larger orders or
28:24:00
you're promising them all of these
28:25:00
things they hear it every day and the
28:29:00
problem being is that they get there you
28:31:00
just get tired of hearing it so they'll
28:33:00
give you a larger moq just to test you
28:35:00
see how dedicated you are and that's the
28:38:00
trick with it with having people that
28:40:00
you know and trust I mean here it's
28:42:00
launchpad we have to you know dedicated
28:44:00
representatives hand and feet in in
28:46:00
China alone that go to the factories and
28:49:00
negotiate pricing and quantities and mo
28:51:00
queues and a lot of times the clients
28:54:00
can't believe the difference of having
28:57:00
somebody there wait that's the
28:59:00
relationship point that's why I say
29:00:00
going online and you take your chances
29:02:00
but even if you find somebody good you
29:04:00
don't have that negotiating power like
29:05:00
we have that negotiating power right we
29:07:00
can go in is we're doing business with
29:09:00
these factories and they know it's us
29:11:00
we're bringing somebody that you know
29:13:00
we're serious when we bring somebody and
29:15:00
we can say hey you know what you're at
29:16:00
six bucks can we get it down to you know
29:18:00
550 or you'll get there when we get up
29:20:00
to certain volumes we get better pricing
29:22:00
and that's something that you know the
29:23:00
inventor not necessarily always but
29:25:00
usually can't achieve on their own they
29:27:00
just don't have relationships they're
29:29:00
not doing business with these factories
29:30:00
so there's no incentive for the factory
29:32:00
to to help them at that point anyway no
29:34:00
no you're exactly right and sometimes
29:36:00
getting a lower quantity paying more for
29:38:00
that lower quantity is is not a
29:40:00
hindrance is actually better yes not
29:42:00
only testing the product you're testing
29:44:00
your theories testing how it works
29:46:00
you're testing the market right Jim and
29:47:00
and and you see if the product works you
29:50:00
can always make that change even the
29:51:00
packaging getting a product package it's
29:54:00
very important each step so you keep
29:57:00
down to the to the minimum order
29:59:00
quantity to get a good price and it
30:01:00
really helps everybody yeah you know
30:04:00
bottom line caramel I just you know
30:06:00
inventors out there reach out to us yeah
30:10:00
that's your safest bet really I mean
30:12:00
otherwise you're just taking your
30:13:00
chances yeah I mean again you know most
30:16:00
of the time I don't know about you Jim
30:17:00
or when people reach out to me ask me a
30:18:00
question it's not like I'm charging I I
30:21:00
spend a couple hours a day answering
30:23:00
emails yeah any questions we have books
30:26:00
out we've given do we have this podcast
30:28:00
that we're giving you the information
30:30:00
we're not saying we're gonna charge you
30:31:00
for this information being a successful
30:34:00
inventor to us is is someone who knows
30:36:00
the next step yeah correct move to make
30:40:00
at some point if you want us to help you
30:42:00
we would love you for you to help us I
30:44:00
mean for you to come to us and we'll
30:45:00
help you but it'd reach out to us and
30:48:00
ask us questions we're not charging for
30:50:00
this information yeah it's just another
30:52:00
piece of the puzzle it's got to be done
30:54:00
so you might as well get it done right
30:55:00
the best price best quality with threes
30:59:00
that you know we know that's gonna be
31:02:00
you know your biggest help correct and
31:05:00
if you're educated if you're educating
31:06:00
yourself you have the information and
31:07:00
you reach out to us it's just gonna help
31:09:00
you and it's gonna help us I mean if you
31:11:00
have a product made and you're in China
31:13:00
and you're having a chip here reach out
31:14:00
to Jim send him up send him a sample he
31:16:00
would love to have that in his hand and
31:18:00
show it to retailers
31:19:00
show the people who might want to carry
31:20:00
it I mean that's that's what he does
31:22:00
there's nothing wrong with that so same
31:24:00
thing with me if you're looking to get a
31:26:00
product maybe you have pricing you have
31:27:00
CAD files you have the drawings or or
31:29:00
you don't whatever it is reach out to me
31:31:00
and I'll let you know what we can do for
31:33:00
you if you're going to spend the money
31:34:00
you might as well have somebody here in
31:37:00
the u.s. that you can trust that you can
31:38:00
reach out to and talk to yeah and yeah
31:41:00
and that last point to that I see a
31:43:00
language barrier people reach out to
31:44:00
factories sometimes people just don't
31:46:00
connect on the on not just the like
31:48:00
English versus you know Chinese or
31:50:00
whatever the country it's really just
31:52:00
how they discuss things I mean just the
31:55:00
way it's discussed is culturally is
31:57:00
different than in the US okay look tons
32:01:00
of stuff right and this is just some of
32:02:00
what it takes but hopefully everyone's
32:04:00
got some basis now to understand there's
32:07:00
a lot more that goes into this and just
32:09:00
going on the internet finding a factory
32:11:00
and you know saying hey I need a product
32:13:00
made yeah the language barrier is huge I
32:16:00
mean I'm on at 2:00 3:00 in the morning
32:17:00
with China we chat on skype going
32:20:00
through and sometimes I'm pulling my
32:22:00
hair out because I'll spend an hour well
32:24:00
whatever I have time explaining
32:32:00
something and I I am NOT the greatest
32:35:00
communicator explaining something back
32:37:00
and forth trying to draw pictures I'm
32:39:00
not a good artist back and forth and I
32:40:00
think they have it and then just towards
32:42:00
the end they come back to me and say
32:43:00
something I'm like oh my god they just
32:45:00
didn't get it so then we said but it
32:47:00
does take time and I have the reps they
32:49:00
speak good English and I can tell you
32:51:00
one thing and Jim hopefully you'll
32:52:00
attest this is that the Chinese
32:54:00
themselves are great people
32:56:00
I I myself think that they really want
32:59:00
to do a good job it's just we have to
33:01:00
communicate with them in the best way we
33:04:00
have to communicate to them so they
33:05:00
understand it the Chinese language is
33:08:00
very very different than ours facial
33:11:00
expressions the way that we say things
33:13:00
it is totally different than it is in
33:17:00
China and and they really really want to
33:20:00
do a good job for us yeah I agree
33:22:00
culturally it's different they
33:23:00
definitely have a lot of pride you know
33:25:00
they want the outcome to be good and
33:27:00
look selfishly for them if it does it
33:29:00
just means more business for them but
33:31:00
just generally at heart they
33:33:00
most factory owners or managers I've
33:35:00
worked with yeah they're very interested
33:38:00
they're not just transacting something
33:41:00
here that they really want it to be
33:42:00
right and they really want to help and
33:44:00
they have pride in seeing that they make
33:46:00
something that looks really good and
33:48:00
works well and then and then when they
33:50:00
see it or hear that it's being sold and
33:52:00
you know like the Walmarts and the
33:53:00
targets and the Costco's of the world it
33:55:00
makes them very happy yeah and we run
33:58:00
into that with most of the factories
33:59:00
used throughout the country as I said in
34:01:00
almost every continent even Bangladesh
34:03:00
you know I was I was just a quick story
34:05:00
I know we got to get going you know
34:07:00
sometimes we don't realize what's
34:09:00
happening in these other countries China
34:11:00
has rolling blackouts they have typhoons
34:13:00
in China's a big country just like
34:15:00
Bangladesh I was on phone on skype
34:18:00
looking for one of our reps in
34:19:00
Bangladesh and and he was not answering
34:22:00
me I was kind of getting mad because I
34:23:00
had this project do and I want to know
34:25:00
what's happening and I jump online I
34:27:00
said what's happening over there and you
34:29:00
know there was these flash floods in
34:31:00
Bangladesh I mean he sent me pictures
34:32:00
later of his factory was flooded and
34:35:00
here I was you know because it's so far
34:37:00
away you just don't know what's
34:39:00
happening yeah and and I told him hey
34:41:00
I'm sorry I just I you know I didn't
34:43:00
know and and so sometimes we're so far
34:46:00
disconnected that that we just don't
34:49:00
realize it so that's why having somebody
34:51:00
like us Jim or myself and my reps they
34:53:00
keep us connected to the information
34:55:00
yeah there's no question so like I said
34:57:00
you know don't take your chances it's
34:59:00
just not worth it not when it's your own
35:01:00
product anyway I mean that's well yeah
35:04:00
when you you know when you got to hit
35:07:00
that button and send 20 30 50 100
35:09:00
thousand dollars over there that's when
35:12:00
you really really gonna step back and go
35:15:00
oh my shirt and yes sadly there's been
35:19:00
too many people that have set that push
35:21:00
that button and then that's that
35:23:00
talk to one of us before you do that but
35:27:00
yeah it's good man I mean we're kind of
35:29:00
done with time I mean I can't believe
35:30:00
that our time went this quickly I
35:35:00
appreciate you being on the show today
35:37:00
Jim and next week we'll think of some
35:39:00
subjects we'll get some emails I've had
35:41:00
some emails yeah we get them I get them
35:43:00
all the time I mean like I said there's
35:45:00
endless discussions
35:47:00
you know in this inventing business we
35:50:00
can we can talk for years and and just
35:52:00
go on and on about all the things so
35:54:00
yeah keep the emails coming obviously on
35:56:00
our Facebook page get retail ready with
35:58:00
carmine and Jim where you know we post
36:01:00
each one of these podcasts every
36:03:00
Wednesday so listen in and of course
36:05:00
again post questions topics you want us
36:08:00
to cover you know we'll get to you
36:10:00
eventually there's no question about it
36:12:00
yeah yeah if you have some products or
36:14:00
you have some some like Jim said some
36:16:00
questions let us know about it we are we
36:18:00
definitely want to hear from you guys
36:19:00
here for your viewers please go out if
36:21:00
you can if you get a chance let us know
36:23:00
how we're doing go up on iTunes or
36:25:00
Google Play and give us a review give us
36:28:00
a ranking let us know how we're doing
36:29:00
either way because you know we want to
36:33:00
get this information out to you guys so
36:34:00
from Jim and myself I appreciate it and
36:38:00
tune in next time for getting retail
36:40:00
ready guys you all take care yep thanks
36:42:00
guys