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Should I Make Manufacturer to Refrain From Selling Customized Product?

by felixcohen
6 replies
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It's not customized the way it requires mold creation but it's more like handmade product from custom cut leather that also has component in it, plus it has stamped artwork on it that I sourced.

Manufacturer told me that they do not make design and asked me to send reference sample to which I agreed as I had retail product in hands. Pre-production sample cost will be higher than usual as well as price per unit.

What I want to know is whether I should indicate in PO that they will not be listing this product on Alibaba to resell to others. I also heard there's sales contract in addition to PO where terms are agreed and signed by both parties.

How should I go about this?

Thanks
#customized #make #manufacturer #product #refrain #selling
  • Profile picture of the author violet0176
    Originally Posted by felixcohen View Post

    It's not customized the way it requires mold creation but it's more like handmade product from custom cut leather that also has component in it, plus it has stamped artwork on it that I sourced.

    Manufacturer told me that they do not make design and asked me to send reference sample to which I agreed as I had retail product in hands. Pre-production sample cost will be higher than usual as well as price per unit.

    What I want to know is whether I should indicate in PO that they will not be listing this product on Alibaba to resell to others. I also heard there's sales contract in addition to PO where terms are agreed and signed by both parties.

    How should I go about this?

    Thanks
    You should include trademark and patent information in your contract/PO. That however has never stopped the Chinese(sorry) from stealing designs and reselling them. I'm sure American manufacturing costs more, but at the end of the day, what is your product's worth to you? The USA respects Patent and Copyright laws, China does not.
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    • Profile picture of the author Importexport
      No matter what you put in your PO/Contract your product will be copied. I have known copies to go on the market before the designer has even received a prototype.

      Now that the manufacturer has seen the sample and your design changes you have almost certainly lost it.

      There are countries other than China or elsewhere in Asia where you can have products made without fear of having your design stolen.

      I have been encouraging my book users to consider countries other than China, and have included many links to reliable sourcing platforms in other countries in my latest edition.

      You might for a start have a look at this thread: Importers should consider countries other than China

      For what is basically a hand crafted item that requires no tooling, you can get small quantities made.

      Walter Hay.
      "If you think education is expensive - consider the cost of ignorance."
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      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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      • Profile picture of the author felixcohen
        Originally Posted by Importexport View Post

        There are countries other than China or elsewhere in Asia where you can have products made without fear of having your design stolen.
        And what guarantees it won't be copied in other countries?
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        • Profile picture of the author Importexport
          Originally Posted by felixcohen View Post

          And what guarantees it won't be copied in other countries?
          There are no iron clad guarantees in relation to Intellectual Property, but generally speaking the rule of law operates in western countries. If contracts are not honored the courts will usually uphold the right of the owner of Intellectual Property.

          That is often costly, but the knowledge of that likely outcome will usually make offenders stop and think, and in many cases cease and desist. In China and other Asian countries your chances of protecting your IP are slim.

          Walter Hay.
          "If you think education is expensive - consider the cost of ignorance."
          Signature
          Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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      • Profile picture of the author felixcohen
        Originally Posted by Importexport View Post

        You might for a start have a look at this thread: Importers should consider countries other than China]
        I read it. You mention there that since costs of labor in China are rising the cycle of going after low-cost labor will continue in other countries.

        Since you said cycle, does that assume countries that were already part of it be used for manufacturing again? If their living standards were improved thanks to importing I don't see this comeback unless somehow they degrade to where they started.
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        • Profile picture of the author Importexport
          Originally Posted by felixcohen View Post

          I read it. You mention there that since costs of labor in China are rising the cycle of going after low-cost labor will continue in other countries.

          Since you said cycle, does that assume countries that were already part of it be used for manufacturing again? If their living standards were improved thanks to importing I don't see this comeback unless somehow they degrade to where they started.
          The countries that increase living standards and labor costs tend to move on to produce more sophisticated and higher cost products.

          There is an almost endless supply of countries with low labor costs and you can expect to see a lot more products coming out of India, Pakistan, Indonesia, Bangladesh, Vietnam etc., before manufacturing moves on to Africa. Some Eastern European countries are regarded as low labor cost countries, but I doubt that will last long.

          There are already some manufacturers that have moved to Africa, but they are at the forefront, and I don't expect to see that on a large scale for at least 10 years.

          Walter Hay.
          "If you think education is expensive - consider the cost of ignorance."
          Signature
          Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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