The Million Dollar Case Study

Session #5: Alibaba Factory Discovery

Journey to $1mil - 100% for CharityMarch 15th, 2017

Where are we?

▸ Found 2 product ideas▸ Gary Huang taught us how to find a good

factory (webinar #3)▸ Marc gave us an overview of potential legal

issues (webinar #4)▸ We need a factory & samples!

Find Factories

Found & Contacted

21

3

14 Responses

3 Seem Good

Baby Towels seem slightly better so I decided to contact those factories first

Tips and Tricks

▸ Find a potential factory then add to favorites▸ Group them in your favorites by product▸ Contact them all at the same time (use

Gary’s template)▸ Judge their responses then index into

folders (inside messages) accordingly▸ Ruthlessly cut bad suppliers

Let’s do it together!

What did my 14 responses look like?

A “good” responseThank you for your email, the professional bamboo baby products manufacturer. For the hooded towel, we are produce with 92%bamboo8%ployester warp knitted terry fabrics in 400gsm as regular, which is very soft and widly used for baby hooded towel ,bathrobe and blanket... The 2 white hooded towel with white ear and white with brown ears you send to me are our products. we are develop some different amimal design hooded towel also. commonly we produce the hooded towel size is 75*75cm and 90*90cm as regular. we can produce as per your design and color base on MOQ 500PCS in one design per color. also we can produce as per your design such as the brown elephant design. 1. please refer attached pricelist for you to check. 2. we are the bamboo baby products manufacturer speacial for bamboo hooded towel,bamboo wash cloth and ohters ...3. we have sample for white and brown ear now, can arrange shipment immediantly. if you would like to check the elephant design, we have to produce the sample speacially, it will take about 7-10days . 4. the bulk order production time about 30days after order confirmed. 5. For the logo, commonly we add the logo on the wash care label. or emboridery logo on the towel, just emboridery cost is higher, it is USD0.17/PCS. 6. The courier freight cost is USD35 for 1pcs sample . please feel free contact me for any requirement!

Attached a nice price list with lots of photos

A “decent” response

thank you for your inquiry.we are towel factory ,mainly custom all kind of it with client private label according to customer requirement. as for your question, 1.we had to white one . if you want to elephant design, maybe you should send me a sample or some clear detail photos.2.we are towel factory , and we also have permission of export.3.lead time 40days sample time 7-10days.4.you can add your logo in anywhere of towel . hooded or others place. 5.sample cost depends on animal type. ship cost $30approx. about your requirement animal hooded towel, can you tell me more details?bamboo 92*92cm how weight do you want ? and design detail. looking forward to your reply

Attached two pictures

A “janky” response

Hi Sir

We are towel factory established in 1994, and mainly customize towels with client's private lable according to customer requirements. We have ISO 9001 cert and SEDEX audit, has customized towels for 22 years, which can ensure the delivery time well. very gald to cooperate with you large company soon, hope you can know more about our quality and service.

What about prices?

$2.70 (Lowest) $4.00 (Median) $5.20 (Highest)

What would our profit be?Retail: $18-24COGS: $4Inbound Shipping: $2 (conservative estimate - air shipping: $6/kg)FBA Fees: $5.69 - $6.58Misc Costs & PPC (5%): $1

Profit: $5.31 - $10.42

Good Factory 1

▸ Sample = $60 (PayPal)▸ Communicating on skype▸ 400gsm in picture▸ Going to try and send a

swatch of gsm fabric and other colors

▸ Sending today

Good Factory 2

▸ Sample = $60 (PayPal)▸ Communicating on skype▸ 400gsm bamboo, 500gsm bamboo, cotton (with dirty spot)▸ Sending tomorrow▸ No pictures of the actual sample yet

Good Factory 3

▸ Sample = $50 (PayPal)▸ Communicating on skype▸ White bear 400gsm, white rabbit 400gsm,

450gsm swatch, pink/yellow/blue swatch and brown box

▸ Sending ASAP, hopefully this week▸ No pictures of the actual sample yet

Next Steps

▸ Wait for our 3 samples to arrive (2 weeks)▸ Evaluate samples together▸ Design packaging and place order!

Join us March 29th @ 5p PT for Webinar #6