God and the Devil are two different things. You remember Hercules and Hades from the Greek mythology, Batman and the Joker from DC Comics, Dorothy from The Wizard of Oz, Harry Potter from Harry Potter and Lord Voldemort from the Harry Potter series... the list goes on forever. A typical hero has a villain who shows up and ruins everything; the villain transforms a simple mission into a life-threatening one! That's how it is in China manufacturing as well.

Get to know super-hero: OEM.

Original equipment manufacturer is what OEM stands for. By putting your logo on someone else's product they have designed, researched, and developed, so you can make a profit. Then you've got your own branded product - or line of products.

Another person handled the factory negotiations, molding, remolding (and remolding again for the third time), training the employees, sample production, the 200-page specifications manual, etc. Someone went through all that and then every factory in China copied it. In order to order a product from Alibaba.com, you need to log on to the site, look for the product, upload a PDF file with your logo, and wait for it to arrive.

There is no place like China. You won't have to devote months to product development. From the comfort of your own home, you can in and out.

In other words, if you are planning to open a boutique, for example, you can buy styles that someone else has already designed, sew on a custom label and you are ready to start business as soon as the shipment arrives.

The situation improves. Because most of these "OEM" products are copied from one manufacturer to another, there is a lot of competition between these manufacturers. This means that if you play your cards right, then you will get a better price than you would otherwise.

Request an estimate of the price

Tell them you need a better price; that it is too high.

In your potential order, mention to them that you have found a better price from another supplier and that you will be using someone else if their price isn't within your budget.

There will be retaliation from them. You will get the best quality/price ratio possible from us because our quality is better, we produce faster.

You need to play this game a few times until you are satisfied with your price.

You should negotiate at the same time with several suppliers if you have no idea what the real price should be for your product. Don't be afraid to be harsh on some (which could make them angry and lose interest) just to see how they respond. Don't do business with the suppliers that are most important to you until the end, when you have a better sense of the price and are more confident in negotiating.

If you just need a quick fix, this is great. I hope people will like the product with your logo on it and plan to buy it. What if you wanted to create your own original designs in addition to what already exists?

In Chinese manufacturing, MOQ is the most powerful villain.

MINIMUM ORDER QUANTITY is what MOQ stands for. Don't underestimate this stumbling block.

You have always dreamed of having your own boutique. As the designer of a 30-piece collection, you seek to use high-quality materials that are innovative at an affordable price. Then you discover that you can only buy fabric in China if you purchase 1,000 yards (per style and per color). The only way you can make a dress is to make 1000 of them! In just a few seconds, your dream vanishes.

Simply put, economies of scale are what allow prices in China to be so cheap. When you try to produce an original design in China, you will realize what mass production really means. In the case of OEM products, your minimum order quantities are usually lower since the same product is mass-produced and then sold to buyers in smaller quantities through traders. The only buyer for your own original design will be you, so you must be prepared to buy in very large quantities if you want to create your own design.

Therefore, the next time you are thinking about creating a product, or creating a brand, do not go too crazy with design and come up with 30 different things in five different colors. If you are not willing to purchase OEM, you must consider MOQ's when planning your brand, unless you are willing to buy OEM. 

I believe it would be a waste of resources and time to spend months in R&D just to realize that you need to build a warehouse larger than your house and spend two million dollars to meet the minimum requirements.