Questions to Ask a Manufacturer
Twenty questions for a sourcing call with a contract manufacturer, covering minimums and pricing, tooling ownership, inspection and defect rates, payment terms, and who pays when a batch fails.
The questions
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What do you make now that is closest to what I need?
Why ask it
A factory that already runs something similar has the tooling, the operators, and the material relationships. If the nearest example is two categories away, you are paying for their learning curve in scrap and delay.
Is all of this made in your own factory, or do you subcontract part of it?
Why ask it
Many suppliers are trading companies or partial assemblers, which is not automatically bad but changes who controls quality. Ask which operations happen under their roof and which do not, and expect a clear list rather than reassurance.
What is your minimum order, and how does the unit price change between 1,000 and 10,000?
Why ask it
Two price points show you where their cost structure actually sits. If the price barely drops with volume, most of the cost is materials or hand labor, and there is little to gain by ordering deeper.
What are the tooling and setup costs, and who owns the tooling afterwards?
Why ask it
Ownership decides whether you can ever move suppliers. Get it in writing, along with where the tool is stored and who pays for maintenance, because tooling held hostage is one of the most common ways small brands get trapped.
What do you need from me before you can quote properly?
Why ask it
A capable supplier asks for drawings, tolerances, materials, finishes, packaging, and test standards. One that quotes from a photograph will requote later, usually upwards, once reality arrives.
How long does sampling take, and what does a sample cost?
Why ask it
You want the timeline for a sample made on production tooling, not a showroom piece from another customer's run. Free samples are often a warning that what you receive will not represent your order.
What lead time should I plan for a first order, and for repeat orders?
Why ask it
First orders always take longer, and the gap between the two numbers tells you how much of the delay is setup versus their normal queue. Ask what the lead time was on their last three shipments rather than what it should be.
How much of your capacity would my order take, and when is your busy season?
Why ask it
Being a small customer in a busy plant means your run gets moved when a large account calls. If your order is a large share of their capacity, the risk is the opposite: you become their cash flow, and they cannot absorb a mistake.
Which components or materials do you buy in, and from where?
Why ask it
Bought-in parts are where most delays and quality surprises originate, especially electronics, fasteners, and anything imported. Ask for the sub-supplier names for the two or three critical items, and whether there is a second source.
What happens to my price if material costs move sharply?
Why ask it
You are looking for how long the quote holds and what the adjustment mechanism is. Suppliers who promise a fixed price indefinitely on a volatile input either have not thought it through or will come back to renegotiate mid-order.
How do you inspect, and can I see a recent inspection report for something similar?
Why ask it
A real answer includes when inspection happens, the sampling standard used, and who signs it off. A document you can read is worth more than a description, and an unwillingness to share a redacted one is informative.
What certifications do you hold, and when were you last audited and by whom?
Why ask it
Certificates expire and some are issued for a single production line. Ask for the certificate number and scope so you can check it with the issuing body, which takes minutes and catches a surprising amount.
What defect rate do you run on comparable work, and how do you count it?
Why ask it
The counting method matters more than the number: defects found in-line, at final inspection, or by the customer are three different figures. A supplier who quotes a very low rate without explaining the basis is quoting a target, not a measurement.
If a batch is rejected, who pays for rework, replacement, and freight?
Why ask it
This is the question people skip and later litigate. Freight and duty on a rejected container can exceed the value of the goods, so settle liability, timelines, and whether you may withhold payment before you sign anything.
What are your payment terms and deposit?
Why ask it
Standard is a deposit with the balance against shipping documents or after inspection. A demand for full payment up front removes your only leverage, and a supplier with no deposit at all may be funding your order on credit they do not have.
Which shipping terms do you quote on, and who handles the customs paperwork?
Why ask it
Ex-works and delivered prices are not comparable, and the difference can be a fifth of your landed cost. Confirm who is the exporter of record, who pays duty, and who supplies the documents your customs broker will need.
Can I visit, and will you accept a third-party inspection before shipment?
Why ask it
Both answers should be yes without hesitation. Refusing pre-shipment inspection is the clearest signal you will get that a supplier expects to ship something you would reject.
Who will be my day-to-day contact, and what hours do they work relative to mine?
Why ask it
Sourcing problems are usually communication problems. Find out whether your contact is a salesperson or someone with access to the production floor, and whether anything gets answered outside a single overlapping hour.
Do you make similar products for other brands, and how do you handle designs and confidentiality?
Why ask it
Experience with competitors is useful and also a risk. Ask what they do with tooling and drawings when a customer leaves, and remember that in many jurisdictions an agreement is only as good as your ability to enforce it locally.
What went wrong on a recent order, and how did you resolve it?
Why ask it
Every factory has had a bad batch, a late container, or a material substitution. One that can describe the failure and the fix is telling you how the relationship will work under stress. Nothing ever goes wrong is the least credible answer in sourcing.
Working through a supplier shortlist
Practical guidance for the conversation itself
Before the first call
Write one specification and send it to everyone
Materials, dimensions, tolerances, finish, packaging, test standards, target volumes. Quotes based on different assumptions cannot be compared, and most confusing price spreads turn out to be spec differences rather than supplier differences.
Decide what you will not share yet
Full drawings and source files can wait until you are serious. Send enough to be quoted accurately and hold the rest, particularly with suppliers you cannot practically sue.
Work out your landed cost model first
Unit price plus tooling amortization, freight, duty, inspection, and expected scrap. A supplier who looks ten percent cheaper on the unit is often more expensive delivered.
Checks worth doing yourself
- Verify the business registration and that the company name on the quote matches the one on the bank details
- Check certificate numbers directly with the issuing body rather than accepting a scan
- Ask for two references, including one customer who stopped ordering, and actually call them
- Look for the factory in satellite imagery and compare it with the photographs you were sent
- Confirm bank details by phone with a known contact before the first transfer, since payment redirection fraud is common in sourcing
A sensible order of events
Quote, then sample, then pilot run
Approve a golden sample in writing and keep a physical copy. Then buy a small paid pilot before committing to full volume, and expect the pilot to reveal something the sample did not.
Pay in stages tied to evidence
Deposit, then progress against material purchase, then balance against inspection or shipping documents. Structuring payment this way is normal practice and is your main protection.
Put the quality standard in the purchase order
Acceptable defect levels, the inspection standard, packaging, labeling, and what happens on rejection. A purchase order that says only quantity and price gives you nothing to point at later.
Warning signs
- Reluctance to allow a visit or a pre-shipment inspection
- Vague answers about which operations happen in-house
- A price that drops sharply when you hesitate, which usually means the spec has quietly changed
- Pressure for full prepayment, or bank details in a different company name or country
- No questions asked about your drawings or tolerances, which means they have not read them