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Pen Type-A: a cautionary tale of manufacturing in China

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Re: Pen Type-A: a cautionary tale of manufacturing in China

#11
post #8

I had a (shockingly) similar experience with Chinese manufacturers five years ago. My experience cost me a company, my shirt, and a whole lot of lost sleep. Consequently, I too decided that I will never, ever do business with another factory in China. Not sure that is fair (as manufacturing problems happen everywhere), but it is what it is... Frankly, my story is useless - it is one entrepreneur's story of woe in a s…

Eh, I don't see this happening because China still has the big manufacturers, and they keep the big clients happy. Most of those manufacturers probably are good at building to spec, but would not entertain a small project like pen type a.

That's what China is all about: mass (with a capital M) manufacturing. In pen type a's case, the up front costs and haggling are a major trouble but for an order serveral orders of magnitude larger, the up front costs are a mere rounding error.

Re: Pen Type-A: a cautionary tale of manufacturing in China

#12
post #6

I guess some people here live in github but I really don't recommend it for publishing text documents this way. Sure I can read it by scrolling back and forth or downloading it and opening it in something that will format it nicely and perhaps I missed the "make readable" button. But serious it is 2012, there are dozens of ways to publish things on the web that format them automatically for the browser to people can…

Click the "raw" link and it's a readable wrapping text-only mode.

Not in Firefox.

Re: Pen Type-A: a cautionary tale of manufacturing in China

#13
post #6

I guess some people here live in github but I really don't recommend it for publishing text documents this way. Sure I can read it by scrolling back and forth or downloading it and opening it in something that will format it nicely and perhaps I missed the "make readable" button. But serious it is 2012, there are dozens of ways to publish things on the web that format them automatically for the browser to people can…

Click the "raw" link and it's a readable wrapping text-only mode.

That too was my approach, but I'm sorry to report it didn't wrap for me.

Re: Pen Type-A: a cautionary tale of manufacturing in China

#14
Outsourcing works when you want to exploit economies of scale. This project appears to be an attempt to create a high cost novelty product at a very small scale. They probably would have been better off hiring the services of a local machine shop, cranking out a few dozen gross of these things, and marketing them carefully. Even better if they set-up shop and did themselves-- if we're only talking about a few thousand units.

Re: Pen Type-A: a cautionary tale of manufacturing in China

#15
post #4

Earlier quoted context omitted.

In this case, it's reasonable. There are many reasons to avoid China, very few of which are intrinsic to China. Manufacturing in the US means your manufacturer is in the same time zone and speaks the same languages. You both have the same understanding of contract law and a court system that you are both familiar with. Traveling to the factory takes less time. Honestly, I'm not sure why their made-in-china pens cost…

Back in the day, several of us wondered why they seemed so bound and determined to do it in China: http://news.ycombinator.com/item?id=3037108

I always thought cw was a native Chinese speaker.

Re: Pen Type-A: a cautionary tale of manufacturing in China

#18
post #6

I guess some people here live in github but I really don't recommend it for publishing text documents this way. Sure I can read it by scrolling back and forth or downloading it and opening it in something that will format it nicely and perhaps I missed the "make readable" button. But serious it is 2012, there are dozens of ways to publish things on the web that format them automatically for the browser to people can…

A copy to make it easier to read:

Project Update #27: The Storm

For backers only, Posted by cw&t

Hi backers!

First, for those of you still waiting for your pen(s), we're still on schedule. The schedule was posted a few updates ago (update #22). The 3 remaining batches are shipped from our manufacturer in China on

July 7th (480 pens)

July 23rd (480)

August 7th (494)

In the last couple months, we fought hard to speed up production. We advanced more money and were promised ship dates by our manufacturer and none were met. In their eyes, delays were caused by us because we were so picky about the details, but the truth is we weren't asking for anything out of the ordinary. All we asked for was for them to follow the specifications in our drawings they agreed to on day one. They weren't able to meet the specifications, so they blamed production delays on little changes made during production to help make the pen more manufacturable.

To try to move things forward faster, we proposed to place a new order with our manufacturer in exchange for ramping up production. Instead, they countered our offer and demanded we sign an exclusive 4 year contract, place a new order immediately and pay an additional engineering fee, or they would stop production of the current order.

We weren't interested in a 4 year exclusive contract with a manufacturer that hadn't proved itself, so we didn't sign. On top of that, they took our olive branch (the proposal to place a new order), sharpened it into a shank and started stabbing us with it (metaphorically, of course, with lawyers).

They stopped shipping us pens. We lost some sleep. Lawyers got involved. There was yelling over email, in person, and on phone calls. After many weeks, we arrived at a compromise. We lost a lot of time, some money, and our faith in Chinese manufacturing, but we're still moving forward. They won't be ramping up, but they are completing this order and making pens (that we are super excited about!) without changing the shipping schedule.

We're not placing any future orders with them or any manufacturer in China ever again. It's an unfortunate conclusion, we can't even begin to tell you how pissed off we are with them. It's the first and hopefully last time we'll yell in a business relationship. It's not how we like to do things.

This all happened at the beginning of May. We have been aching to share this, but we had to wait until the storm settled. We were mislead, and in turn, we mislead you. We thought we would finish fulfilling all 5.5k pens in a timely manner. Many of you are understandably frustrated and upset that a project you backed is taking a year to complete. We are too, and we sincerely apologize. We've made poor business decisions and we only have ourselves to blame.

We learned our lesson. We're now setting up to manufacture our next order of pens in Vermont, USA. We won't be able to sell the pen for $50, but we're happy to be out of China. Vermont lacks the charm of smoggy skies and broken english, but when Vermont says they can do it, they mean it.

lots of love,

cw&t

PS. your drawings from us are coming soon! (2 of them are at the bottom) we have about 110 so far and many more to go.

PPS We get butterflies every time we see your drawings. Keep them coming! http://pentype-a.tumblr.com/submit

Check out some of the latest drawings (and some great pen hacks!) http://pentype-a.tumblr.com/

Re: Pen Type-A: a cautionary tale of manufacturing in China

#19
Sadly these guys wrote an identical blog post a year ago about how their previous manufacturer was unprofessional. The new one was supposed to be top notch, since they met him in person and toured the factory before signing.

http://www.kickstarter.com/projects/cwandt/pen-type-a-a-mini...

Re: Pen Type-A: a cautionary tale of manufacturing in China

#20
The other risk I've seen in Chinese manufacturing is duplication of your design. Some vendors will manufacture a larger run and then place the float on the black market. This is particularly true for smaller orders.

I know of at least one niche electronics manufacturer - they have the parts made in China, but they load the firmware back in Australia. They've gone to great lengths to make the device useless without the firmware. It's a bit of a pain shipping-wise, but gives them some security.

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