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How to Find a Supplier for Your Product

Finding a manufacturer or supplier.
If you've been reading about how to find the best hydraulic parts, you may have brainstormed some ideas of your own like capitalizing on one of the many trending products out there.
However, time and time again, many hydraulic distribution and repair professionals find themselves hitting a brick wall and losing momentum when it comes time to actually source products.
In this post, we're going to look at the basics of sourcing a supplier for your next project. We will look at some places to search, how you should approach them and what to ask.

The basics: What are you looking for?
When we refer to suppliers, we’re referring to anyone who has the capability to provide you with products and inventory. This encompasses manufacturers, wholesalers and distributors.
There are a ton of helpful resources online which you can find on Google. But before you begin, there are a few things you should know and decide.
First, you should determine what type of supplier you're looking for. This will help determine the terminology you need to
use in your research. There are several options, the most common being: A manufacturer to produce your own product idea.
A supplier (who may also be a manufacturer), wholesaler or distributor to purchase already-existing brands and products.
A dropshipper to supply products and fulfill orders of already-existing brands and products.

Domestic vs. overseas suppliers
When looking for suppliers if you plan to manufacture or wholesale, you’ll need to decide whether you want to source domestically or from overseas. Overseas can refer to any location abroad.
Typically, and for the purpose of this post, overseas suppliers are located in Asian countries like China, India and Taiwan. That’s because it’s often cheaper to source your products overseas, especially in these countries. But there's a lot more to the decision than just the upfront investment and cost per unit.
Both domestic and overseas sourcing have their advantages and disadvantages:
Domestic sourcing
Advantages
Higher manufacturing quality and labor standards.
Easier communication with no language barrier.
Marketing appeal of being made in North America.
Easier to verify reputable manufacturers.
Faster shipping time.
High intellectual property right protection.
Greater payment security and recourse.

Disadvantages
Higher manufacturing costs.
Less product choice (there are many items that just aren’t made in North America anymore).

Overseas sourcing
Advantages
Lower manufacturing costs.
High number of manufacturers to choose from.
One-stop services like Alibaba have made it easy to navigate suppliers.
Disadvantages
Lower perceived quality from customers.
(Usually) lower manufacturing and labor standards.
Little intellectual property protection.
Language, communication and time zone barriers can be difficult to navigate.
Difficult/costly to verify manufacturer and visit on-site.
Longer shipping time.
Cultural differences in business practices.
Product importation and customs clearance.
Less payment security and recourse.
Where to begin your search for a manufacturer
Now that you have a better idea of exactly what you're looking for, as well as the advantages and disadvantages of domestic vs. overseas sourcing, where do you begin your search? Naturally, the internet is the best place to start, but there are a few places in particular that can help with your search:
Directories
Google
Local library
Referrals
Some of the best sources are free online supplier directories. These directories contain profiles for hundreds or thousands of manufacturers, wholesalers and suppliers. Below, we’ve listed a few of the most popular ones for both domestic and overseas suppliers:
Online domestic directories
ThomasNet
Maker’s Row
MFG
Kompass
Online overseas directories
Oberlo
Alibaba
AliExpress
IndiaMart
Sourcify
Some of the best leads can come from referrals. Don’t be afraid to ask connections in your professional networks if they have any recommendations, or if they know someone who might.
As you do start to uncover suppliers, even if they aren't the right fit for you, be sure to ask them if they can point you in the right direction. Being in the industry means they’ll likely have great contacts and would be happy to refer you to an option that might be a better fit.
You’ll also want to make sure you properly vet your potential manufacturer. Once you’ve narrowed it down to a few possibilities, dig deeper in your research to make sure they’re credible.
Check the Better Business Bureau (BBB) to make sure there haven’t been any complaints filed, browse their Facebook page reviews, and use those Google search tricks to query the company name + reviews to see if any red flags come up. Requesting a quote
Once you've found a suitable supplier, it’s time to approach them. The biggest question you’re going to have is “how much?” but before you hastily send the supplier your request for quotation (many times referred to as an RFQ), plan what you want to say and the questions you need to ask.
Requesting a quote can help you find a manufacturer that fits your budget
Planning your initial inquiry can increase your chances of receiving a response and the correct information. Here are a few important questions to consider for your email:
What is your minimum order quantity?
What is your sample pricing?
What is your production pricing?
What is your turnaround time?
What are your payment terms?
If you’re looking for a supplier for the first time, you're going to quickly learn about minimum order quantities (MOQs). It’s not uncommon for a manufacturer to require a commitment to purchase hundreds or even thousands of units for your first order depending on the product and manufacturer.
MOQs make it difficult when you have limited funds or want to start small and test the market before making larger purchases. The good thing is that MOQs are almost always negotiable.
Before you negotiate, understand why the supplier has imposed a minimum. Is it because there’s a lot of work upfront? Or maybe it's because they prefer to work with larger buyers. Understanding the reasons behind the minimum will help you better understand their position and allow you to negotiate and propose to best counter offer.
After you have a better understanding of your supplier’s position, you can offer a lower order quantity. Compromises can include giving the supplier a deposit for a larger order, but just producing small amounts at a time or paying a higher price per unit.