A sourcing decision has three separate questions inside it, and buyers routinely answer the easiest one — price — first. Can this company manufacture, will they manufacture your quantity, and will the unit that arrives in month four match the unit you approved in month one. The first two are answered before a deposit; the third is answered by a document and a clause, and it is the one that costs money when it fails.
How do I verify a factory before paying a deposit?
Three checks, in this order, and none of them is the website. Read the business licence rather than the marketing page: a manufacturer's registered scope lists manufacturing, a trader's lists sales, and the registration number can be checked against the national credit register. Ask for a live, unscripted video walk of the floor at short notice — not a recorded tour. And confirm the bank beneficiary matches the legal entity on the contract, because an account in a different name is the single most common place a deposit is lost.
- Registered scope names manufacturing, not "sales" or "import/export"
- Live video walk accepted at short notice, with the machines running
- Bank beneficiary identical to the contracting legal entity
- Certificate documents carry a lab name and a sample ID, not just a logo
Factory or trader: the check that decides the rest
A trading company is not a scam. It can be the right partner when your quantity is small, your specification is standard, and you need someone to consolidate three components from three factories. The problem is not that traders exist — it is that a trader presenting as a factory changes what every later promise means. A delivery date quoted by a factory is a schedule; quoted by a trader it is an estimate of someone else's schedule, and the person who can actually move it is not in the conversation.
The licence is the cheapest test because it is binary. A registered manufacturing scope is granted for a physical plant; a trading scope is granted for commercial activity. Ask for the licence image, read the scope line, and check the registration number. Then ask one question the answer to which a trader cannot fake: which machine runs the compression mould for this part, and how many cavities does it have. A manufacturer answers in seconds and slightly impatiently. A trader forwards the question.
The second test is the unscripted walk. Recorded factory tours are produced assets, and the ones on a supplier's own channel are marketing. A live call at two hours' notice, with the camera pointed at the floor rather than at a showroom wall and with machines audibly running, is materially harder to stage than a video. If the answer is always "the manager is out", that is itself the answer.
The MOQ ladder, and why a factory says yes to it
Minimum order quantity is not one number a factory sets to be difficult; it is the point at which the setup work stops being a loss. Four ladders cover almost every device in this category, and each step up exists because a different fixed cost enters the job.
| Route | Working minimum | What the fixed cost actually is |
|---|---|---|
| Stock platform, your label | 100–300 units | Label print run and a packing line change — the tool already exists and is already amortised. |
| Private label, standard colour | 300–500 units | Colour matching, a Pantone run and a packaging print plate. The mould does not change. |
| ODM, modified design | 500 units | Engineering time on a shared platform: firmware, a new housing variant, a new test plan. |
| Full custom, new mould | 1,000 units | The tool itself. A mould is cut once and its cost is recovered across the first run, not across your first ten units. |
The reason a factory says yes to a ramp is that the ladder is a schedule, not a discount table. A written first order at 300 with the second and third committed at 500 and 1,000 is a smaller risk to the plant than a verbal promise of 5,000, because it can be planned against. What a factory will not do is price the 300 as if it were the 5,000 — and a buyer who asks for that is asking the plant to fund the difference.
The ladder is not a discount table, it is a schedule — which is the thing a plant can actually put into its planning.
A written ramp: what the plant can plan against
Highest in this set: Third, committed at signature at 1,000 units.
Two rules follow, and they are the ones that survive contact with a real negotiation. Never discuss volume before you have discussed the material standard, because the standard is what tells the factory you are a buyer rather than a browser. And always ask for an itemised breakdown that separates product, packaging and setup — not to shave the total, but because the split is what shows you which costs are fixed and therefore negotiable with volume, and which are not.
What a sample proves, and the golden sample that decides a reorder
A sample proves that the factory can make one unit to your specification, on a day when someone was paying attention. It does not prove that the thousandth unit will match it, and the gap between those two statements is where most first orders turn into a second negotiation.
The instrument that closes the gap is the golden sample: one approved, signed unit held by the factory and by you, against which every bulk order is measured for colour, material, function and finish. It has to be signed before production starts and it has to be the version you approved — not a later, quietly improved unit, which is how specification drift enters without anyone lying. A supplier who cannot produce the golden sample at inspection time has nothing to be held to, and a clause without a physical reference is a clause about a memory.
Pair the golden sample with an inspection that has a number in it. AQL sampling under ISO 2859-1 gives you a defined defect threshold instead of a general impression: the usual framing for this category is critical defects at zero, major at 2.5 and minor at 4.0, and the value of stating it is that "looks fine" stops being a test result. Our manufacturing page sets out how the inspection points map onto a production run.
The reason to inspect early is not rigour, it is arithmetic: the price of a correction jumps an order of magnitude at each step.
What it costs to find the same defect at each stage
Highest in this set: After the shipment leaves at 100×.
Ask for the report, not the badge
Every supplier page in this category carries the same row of marks. A badge is a graphic; a report is a document with a laboratory name, a report number, a sample description, a date, and a list of the tests that were actually run with the results beside each one. The difference matters because the badge is what a listing shows and the report is what a marketplace, a customs authority or a plaintiff's lawyer will ask for.
- EU: a CE declaration of conformity with RoHS, plus a REACH statement for chemical safety. CE marking is a self-declaration by the manufacturer — see the Wikipedia entry on CE marking — which is exactly why the technical file behind it is the thing to read.
- US: FCC authorisation on anything that transmits, and the appropriate FDA route if a therapeutic claim is made.
- Transport: UN38.3 and IEC 62133 test summaries for any lithium cell, which is most of this category and is the document a forwarder will demand before a booking.
- Quality system: ISO 13485 or ISO 22716 where the claim is made, with the certificate scope naming the site that will actually run your order.
Two failure modes are worth naming because both look like compliance. A certificate issued to the factory's trading arm rather than to the plant is a certificate for a company that will not make your product. And a report whose sample description does not match your specification — a different durometer, a different motor — is a real document about a different device. Read the sample line before the conclusion line.
Why the order keeps getting bigger
A supplier who pushes toward a larger order is usually doing arithmetic you can see, not running a trick. The setup costs in the table above are real, and a factory quoting 300 units prices every one of them into a smaller base. What changes the conversation is separating the two things being asked for at once: a larger commitment and a larger first shipment. A written ramp gives the plant the first and gives you the second, which is why it is the offer that usually works.
The version of this to refuse is the one where the quantity grows but the specification does not get firmer. If a supplier will not put the material grade, the AQL threshold and the golden-sample reference into the purchase order at 300 units, the same supplier will not put them in at 3,000 either — and the larger order is then a larger exposure to an unchanged risk.
Sources cited
- Crosby, P. B. (1979), Quality Is Free: The Art of Making Quality Certain, McGraw-Hill.
From the approved sample to the carton: the checks that cost nothing before the deposit
Three different objects get called a sample, and confusing them is how a dispute starts. A pre-production sample proves the brief was understood; a production sample is pulled from the actual run; and the signed golden sample is the reference an inspector can hold against a carton. Ask for the production sample before the balance payment, because a single unit cannot show batch consistency: that needs a sampling plan and a dated report. The sample sign-off should name the version, the finish and the packaging, not just say approved.
A packaging decision is a specification decision. An artwork proof fixes spelling, logo version and colour reference before printing, and a physical swatch catches colour drift that a screen proof hides. The inspection standard has to name critical, major and minor defects before inspection day, otherwise two inspectors grade the same carton differently. For anything shipped in a retail box, a carton drop test is cheaper than explaining crushed cartons to a retailer, and material substitution is the failure a cross-check against the approved component list is meant to catch.
Cash protection belongs in the first order, not in a later renegotiation. A deposit and balance split, commonly 30/70, keeps the balance payment conditional on an inspection the buyer commissions; where a new supplier will not accept that, an escrow arrangement or a letter of credit does the same job in writing. None of these is a substitute for inspection: they only decide who holds the money when the report says no.
The number to compare between suppliers is the landed unit cost, not the ex-works unit price: carton dimensions, freight, duty, inspection and packaging all sit inside a DDP quote. Ask what the reorder MOQ after tooling will be before paying for the tool, because the second order is a separate negotiation with a different floor. A pilot lot can prove the concept, but it cannot prove that the commercial stack works at the volume you actually plan to sell.
The rest of the desk
The six pages below are one workflow cut into six answers. This page is one stage of it; the other five are linked here because the stage after yours is where most first orders go wrong.
- Brief, quote, landed cost, deposit
- Platforms, payments, clinical accounts
- GPSR, CE, packaging, duties
- Returns, chargebacks, barcodes, EDI
- What is checkable in public
The overview — what we do, what can be bought, and what cannot — stays on the brands, retailers and distributors page.
What this page rests on
Every figure on this page is a published range for this category, stated as a range, or arithmetic on assumptions printed next to it. Where a rule is named — the EU General Product Safety Regulation, the packaging regulation, GS1 prefix licensing, AQL sampling under ISO 2859-1 — the rule is the source, and a reader can open it. No number here was measured on our own bench: the bench data belongs to the reviews, and this page says so rather than borrowing their authority.
Sources cited
- ISO 2859-1 — sampling procedures for inspection by attributes. International Organization for Standardization.
- Wikipedia, the entry on quality control — the framework the inspection points sit inside.