So you've won Project Runway and you want to sell the garments to make mega bucks. First things first: get it manufactured. Here are our top 10 tips to consider when negotiating manufacturing agreements.
- Choose your manufacturer. Local v offshore manufacturer options will no doubt be dictated by cost. If not for ethical reasons, at least consider the PR risk of having your products made in a sweatshop.
- Samples. Provide decent approved samples and request test production runs before placing a full order.
- Quality control. What procedures will you put in place? Will you oversee the manufacturing process or require samples from each batch?
- Minimum Orders. Don't lock yourself into unrealistic minimum quantities; you will find yourself out of pocket in no time.
- Storage. Will the manufacturer deliver the entire order to you, or will you require some to be held in storage? If so, ensure the manufacturer is responsible for all risk in the stored items.
- Delivery. What method of delivery do you require and do you have strict retailer timeframes? If so, consider liquidated damages for delivery delays.
- Insurance. Consider who will be responsible for risk of damage to or loss of garments during delivery. If possible, place this obligation on the manufacturer.
- Packaging. Will you require specific packaging for your garments? Or require other services, like tags to be attached? The more you can pass onto your manufacturer, the less work for you.
- Defective goods. What will be your procedure for defective goods and/or product recalls? Consider a refund or a resupply, and an indemnity against any loss you incur.
- Confidentiality. The intellectual property in the samples, drawings and specifications are yours. Ensure the manufacturer keeps these confidential – you don't want your competitors producing knock-offs before you even hit the market!
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