JungleScoutMillionDollarCaseStudy– Howtofindagoodsupplierwhensourcinga

productPresentedbyGaryHuang

80/20Sourcingwww.8020sourcing.com

Roadmap– Howdowefindgoodsuppliers?

1. Whattolookforinasupplier2. Thegood,thebad,andtheugly– howtospot

them3. WHEREdoIfindthem?4. Gotta PAYtoplay- Makingpaymentssafely

andloweringyourcosts5. Takeawaybonusandnextsteps

JungleScoutMillionDollarCaseStudyProducts

BabytowelswithHood MagneticTiles

Findingatrustworthysupplier– thedatinggame• Goal:Longterm,mutuallybeneficialrelationship• KNOWwhatyouwant– andbespecific• Relationshipsareatwo-waystreet• Tellthemalittleaboutyourselfandyourbusiness• Ultimatelyyouwanttogettobeinterestedindoingbusinesswithyou

Turningthetables– whatdosupplierslookforinBUYERS?• Knowledge- Knowingtheproduct– beingspecificinRFQs• Price– fairbutnotoverkill• Ordersize• Longtermbusinesspotential• On-timepayments• Guanxi

BreaktheicebysendingaRequestforQuotation(RFQ)1. Introduceyourself2. Defineyourproductandbespecific• Productmeasurements• Material• Specifications• Packaging• Anyothercriticalpoints– safety,branding,etc.

3.CalltoAction– Askquestionsandrequestaquotation

RFQtemplate– bestpractices

• BESPECIFIC• Keyquestions• Cantheymanufacturethisproduct?• Pastexperiencewiththisproduct?• Productmodifications• Requestpriceforvolumeorderandsample

• BUTdon’tjustinterrogatethem,talkalittleaboutyourselftobuildTRUST

SampleRFQforhoodedbabytowelsHi there,

We are looking to purchase Baby hooded towels for the US market. See attached photos. Our primary sales channels will be online. We estimate up to 20,000 to 30,000 pcs annual purchase volume after a trial order of 500 sets and samples evaluation.

Specifications:-Size - 34in x 34in (92cm x 92cm)-Hood should have "ears"-Material: 100% Bamboo, organic preferred-Quality: high thread count and very soft-No loose threads-Color: white, no dyes

Do you manufacture these types of bamboo baby towels with hood? If so please provide the following:

1) Photo, Specifications and EXW Quotation

2) Are you a manufacturer or trading company?

3) What is your lead time for samples and trial order?

4) Where can we add our company logo to this item?

5) What is the sample cost with shipping by express to USA?

Appreciate your reply. Thank you.

Gary80/20 Sourcing

Howtoevaluatesuppliersandresponses?

• AUDITIONTHEM- 80/20Rule

Firstcastawidenet,thengodeepdiving

• Firstcastawidenet– filteroutthenon-qualified• Thengodeepdivingwiththeremainingsupplierstofindtherightmatch

WheredoIfindthem?

• Online • Offlinesourcing

TheYinandYangofagoodsupplier

• BalanceofHardskills,capabilities• Canmanufacturetheproduct• Fitsthecommonthreadtest• Hasexperienceandqualifications• Priceisintheballpark

• Softskills,intangibles• Goodcommunicationsandlanguage• Responsive• Cooperative

TheArtofAlibaba

• Firstthingsfirst• Yellowpages– gotta doyourhomework• Gettingstarted– openanaccount

• Entersearchterm• Evaluateresults– productsand/orsuppliers• Contactthem- Castawidenetandthendeepdive

Whattolookforinagoodsupplier

• Goldsupplierswithatrackrecord• Qualifications• Productfit- Commonthreadtest• Qualityfit– Countrytest• Factorydirect• Iftheypasstheinitialscreeningthencontactthem

Signsofabadsupplier

• Lackofexperience• Lackofproductfit• Pricingiswayoff

Avoidtheseguys

• Noreply• Doesnotanswerallofmyquestions• Dishonest

Tradingcompanies

Trackresponsesinspreadsheet

• SupplierNameandlocation• Contactperson’snameandcontactinfo• DateRFQsentandreply• Pricequotation• Samplecost

Communicationsbestpractices

• InitialcontactthroughAlibaba• FollowupbyEmail• Wechat forquickquestions,pictures,andvideo

PaytoPlay- Paymentmethods

• Paypal – goodforsamplesandsmallorders• BankTransferaka“T/T”– mediumandlargeorders• Redflags• Bankaccountnamedoesn’tmatchcompany’sname• Westernunion

PaymentTermsfororders

• Goal– Paylessupfront• Reduceyourrisk• Maximizeyourcashflow

• Recommend:• Startoutwith50%advance,50%beforeshipmentor30/70

• Warning:Donotpay100%advance• Bestpractice:Putthisinwriting• Exception:productsamples– pay100%upfront

Introducing80/20Sourcing

• Advancedtrainingvideocourses• PrivateCoaching• Learnsourcingbestpracticesthroughfreeemailnewsletter• Formoredetailsvisit:www.8020sourcing.com

Thankyou– Here’syourfreebonuses

• Getyourfreebonuses• RequestforQuotation(RFQ)emailscript• Alibaba bestpracticesworksheet• Signupfornewsletter• www.8020sourcing.com/jsmillion

• ContactGaryatgary@8020sourcing.com• 80/20Sourcing:www.8020sourcing.com