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
• [email protected]• 80/20Sourcing:www.8020sourcing.com
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