Frequently Asked Questions (FAQ)

 

What are the advantages of outsourcing?

Lower priced goods. Outsourcing will reduce the overhead cost of maintaining your business. Outsourcing allows you to cut down on the number of your employees and, as a result, reduce your expenses for utilities, taxes, insurance, etc. Outsourcing also enables you to have better control of your business. Because the number of staff is reduced, they can now be managed more effectively. Outsourcing also allows you to focus on the more important aspects of your business - research and development, operations, finance and administration, IT, and marketing. Ultimately, the main goal of outsourcing is to ensure the global competitiveness of your product and your business.

What are the advantages to using Prima Product as opposed to dealing with a factory directly?

Prima has established a wide network of a factories, sub-factories, and contacts for which can be leveraged for pricing/quality choices. Prima also inspects the product during production and prior to container loading based on the customer's guidelines.  A non-agent arrangement would require 3rd party inspection at a much higher cost, as well as not knowing or being able to train the people yourself.

Are there risks to doing business in China?

There are risks in every country in the world.  China is no exception. Factors such as material costs, currency rates, and political concerns are worth taking note of in China as well as others countries, even in the west.  Prima believes that aggressive and dedicated control of those things that can be controlled versus things that cannot be controlled are better to focus on. Things that can be controlled with Prima's assistance include: price negotiation when costs do rise, a strong supplier agreement that enables some fluctuation in currency and material, quality training, and inspection.

Will I need to travel to China at some point during the process?

We encourage all customers to come see the factories that will produce their product or even to help them choose the factory to proceed with.  If just a few items are being sourced, then many customers will leave the factory visit to Prima.  Until a person sees the Chinese factory themselves, it is hard to grasp the dedication and hard work and assurance of quality of the Chinese labor.

How long will it take to get my product after the RFQ has been created?

The average lead time is 60 days for tooling plus 60-90 days for production.  This can vary greatly depending on a number of factors.

How are price fluctuations in raw materials handled?

There are risks in every country in the world.  China is no exception. Factors such as material costs, currency rates, and political concerns are worth taking note of in China as well as others countries, even in the west.  Prima believes that aggressive and dedicated control of those things that can be controlled versus things that cannot be controlled are better to focus on. Things that can be controlled with Prima's assistance include; price negotiation when costs do rise, a strong supplier agreement that enables some fluctuation in currency and material, quality training, and inspection.

Will I need to send samples to China or will they be able to produce goods off of my drawings/photos?

3-D and 2-D drawings, in a variety of formats, are typically ok for most factories. Depending on the product, of course, samples might be needed.  For example, if a fine textural element is on a surface then that texture or a color swatch would be needed.

What is the cost to produce prototypes?

Highly variable depending on the product type.  Can range from $100-$3000 depending on complexity and size.

What are the minimum quantities that I can order?

Highly variable depending on the product and process used.  Prima has negotiated MOQs anywhere from 500 to 1200 in the past. As with other things, MOQs are negotiable and Prima is dedicated to getting the best terms for its customer.

How is quality control handled?

Prima believes strongly that quality from China can be controlled with the right effort and training provided. Prima will work with its customers to provide a comprehensive quality manual for the brand and each product. Prima will help the customer identify materials that may need to be sent out-of-house for testing for safety.  Prima will handle all training with the factory and be present throughout the production to inspect goods off the line as well as a final inspection before container loading.

How are logistics details handled?

Depending on the pricing terms you request from the factory, logistics can be handled in a variety of ways. Most companies deal in FOB terms as the factory assumes all responsibility from factory to vessel in that scenario. The customer assumes responsibility after vessel loading and handles all logistics once at the Port of Destination. Larger customers may handle the specifics themselves, while others may employ a contract freight forwarder. Prima can help you identify a forwarder if need be.