Hello again. This was a most fascinating meeting. It highlighted many areas where some of the manufacturers take things for granted and lose business.
Steve started by explaining how I had worked for five years to mend relationships between the companies and bring the manufacturer back to UPG as a regular supply partner. He then went further by explaining how we were focusing on the security market and how we would be starting to aggressively market our products into our niche in the market.
We then asked the representatives from the company with whom we have been working in both Taiwan and mainland China, whether they could speak for both operations. They told us that they did not have much knowledge of what was happening in their head office in Taiwan. So... point 1. If we needed to discuss the overall picture, why only send Shanghai representatives. It later turned out that the USA sales people were currently in Taiwan. If this meeting was so important, why not come to Shanghai to attend. It's only a short direct flight from Taipei airport. Our level of frustration was rising.
We then discussed problems of communications where we were not sure in which country the goods for us were being manufactured, to whom we should communicate and importantly, from where the goods were being shipped.
It was explained that because they moved some of our production from Shanghai to Taiwan, we were shipping half empty containers. If they combined our manufacturing in one country, we could ship full containers. Point 2. We had to explain that if our cost could be reduced by 10% to 15%, our sales would increase and they would end up getting more work. Go figger!
The next issue was that they shipped products in wrongly marked display boxes, a major QC error. Do we need to check every shipment prior to shipment to make sure this does not recur? Extra cost and frustration!
We tried to explain to them how we invest in a new product in samples, time, money, and marketing. We wanted them to assist where possible. We wanted some samples, for which we were willing to pay, but because these were not large production unites, they wanted us to pay considerably extra. I think we resolved the issue. It wasn't easy.
And so the meeting progressed for 3 1/2 hours.
In the end, we left them hopefully understanding that we have some excellent opportunities, but they need to "come to the party."...... or, Point 3, there are plenty other manufacturers who would love this business!
I could go on in more detail, but I am sure the overall impression comes through clearly.
Today is a semi-rest day with a social meeting with one of UPG's excellent battery manufacturers.
Good.... now to the gym for a short workout. I think I deserve it!
Saturday, February 27, 2010
Friday, February 26, 2010
China 1.2
Hiya Bloggers. I apologize for not getting a Blog out yesterday. The hotel we were staying at in NingBo did not allow access to Blogger.com. Interesting!!
So today's Blog covers both yesterday and today, two very interesting and productive days, with lots of traveling between meetings.
We left our hotel in Shenzhen yesterday, very early to get to Shenzhen airport. We checked in without any problem. We managed to get into the Priority Pass lounge at the airport, which made waiting a relaxing experience. They even had free internet, so we managed to get some work done.
We boarded the plane about 20 minutes late for some unknown reason. Then we sat for an extra half an hour for "Traffic Control" reasons. Apparently this is the norm.
The flight was actually very good, with a hot lunch served promptly and efficiently.
We were met at the airport by the factory driver, after which we drove for 2 1/2 hours to our meeting. It was freezing in the building!
This was an interesting factory. They do assembly of various products, particularly speakers for sound systems. They also make some equipment used for hunting in the USA.
The main aspect I gleaned from the meeting was their willingness to help and to gain more business. This kind of attitude makes us want to give them lots of mutually beneficial manufacturing work.
They drove us to our hotel, which hasn't even officially opened fully. It was extremely modern and comfortable. The staff could not have been more helpful. We had dinner with the factory representative. Unfortunately it was not great food, our first poor meal since we got to China. We passed out quite late at night.
This morning was an early start (again)! The short drive to today's first factory was easy. The factory we saw this morning was one of the most fascinating we saw. We went for one reason, but actually ended up with four main opportunities.
As we were about to start our tour of the facilities, before we had even been inside their building, we saw their neighbor making plastic clamshells and similar packing products. We spent some time with them exploring new packing opportunities, and right next to a potential new supplier.
We then visited the intended factory. What struck us so clearly was that the factory had no unnecessary frills, but did their work extremely cleanly, efficiently and with amazing innovation. The production lines were well lit. The product was thoroughly tested. They showed us how they understood all the ramifications of what they were manufacturing and could alter their production to suit customers requirements.
Generally their price/quality competitiveness seems to be most appealing. The products we went to see were actually better than we thought. We intend showing them to select customers for their opinions at the ISC West show on Las Vegas in March.
They then showed us a whole new range of products which could effectively turn the market on its head. Their UL listed equipment is considerably less expensive than those of other manufacturers. We saw their superb testing procedures, giving us initial confidence in the products. We discussed various options for discussion with customers over the next month.
And then..... Steve came up with a brainwave that is so potentially exciting that I dare not put it in print, especially on the internet. We need to do some careful preparation and planning, but who knows....... watch this space!
And then we drove for 4 1/2 hours at breakneck speed and wild maneuvering, at times, to reach our next appointment near Shanghai. The most interesting aspect of the drive was crossing the sea over a bridge 36 kilometers long!!
The meeting was interesting for me. I tried to assist where possible, but not being a security product, it does not belong in this blog.
We reached out hotel after 9pm. We crossed the road for dinner, not having eaten a thing since our early breakfast.
Now it's time to sleep at 12.46am.
So today's Blog covers both yesterday and today, two very interesting and productive days, with lots of traveling between meetings.
We left our hotel in Shenzhen yesterday, very early to get to Shenzhen airport. We checked in without any problem. We managed to get into the Priority Pass lounge at the airport, which made waiting a relaxing experience. They even had free internet, so we managed to get some work done.
We boarded the plane about 20 minutes late for some unknown reason. Then we sat for an extra half an hour for "Traffic Control" reasons. Apparently this is the norm.
The flight was actually very good, with a hot lunch served promptly and efficiently.
We were met at the airport by the factory driver, after which we drove for 2 1/2 hours to our meeting. It was freezing in the building!
This was an interesting factory. They do assembly of various products, particularly speakers for sound systems. They also make some equipment used for hunting in the USA.
The main aspect I gleaned from the meeting was their willingness to help and to gain more business. This kind of attitude makes us want to give them lots of mutually beneficial manufacturing work.
They drove us to our hotel, which hasn't even officially opened fully. It was extremely modern and comfortable. The staff could not have been more helpful. We had dinner with the factory representative. Unfortunately it was not great food, our first poor meal since we got to China. We passed out quite late at night.
This morning was an early start (again)! The short drive to today's first factory was easy. The factory we saw this morning was one of the most fascinating we saw. We went for one reason, but actually ended up with four main opportunities.
As we were about to start our tour of the facilities, before we had even been inside their building, we saw their neighbor making plastic clamshells and similar packing products. We spent some time with them exploring new packing opportunities, and right next to a potential new supplier.
We then visited the intended factory. What struck us so clearly was that the factory had no unnecessary frills, but did their work extremely cleanly, efficiently and with amazing innovation. The production lines were well lit. The product was thoroughly tested. They showed us how they understood all the ramifications of what they were manufacturing and could alter their production to suit customers requirements.
Generally their price/quality competitiveness seems to be most appealing. The products we went to see were actually better than we thought. We intend showing them to select customers for their opinions at the ISC West show on Las Vegas in March.
They then showed us a whole new range of products which could effectively turn the market on its head. Their UL listed equipment is considerably less expensive than those of other manufacturers. We saw their superb testing procedures, giving us initial confidence in the products. We discussed various options for discussion with customers over the next month.
And then..... Steve came up with a brainwave that is so potentially exciting that I dare not put it in print, especially on the internet. We need to do some careful preparation and planning, but who knows....... watch this space!
And then we drove for 4 1/2 hours at breakneck speed and wild maneuvering, at times, to reach our next appointment near Shanghai. The most interesting aspect of the drive was crossing the sea over a bridge 36 kilometers long!!
The meeting was interesting for me. I tried to assist where possible, but not being a security product, it does not belong in this blog.
We reached out hotel after 9pm. We crossed the road for dinner, not having eaten a thing since our early breakfast.
Now it's time to sleep at 12.46am.
Wednesday, February 24, 2010
China 1.1
Another day of meetin' and eatin'! A good day though.
We started early, as usual. We were driven to an amazing factory with over 3,000 workers, each working quietly, quickly and efficiently. The factory manufactures transformers, small power supplies and other related products.
What struck me, was the cleanliness and organization of everything from the showroom and meeting room, to the factory floor, including the transformer varnishing areas.
The bathrooms were the cleanest I have ever seen in any factory around the world! On remarking about this to the owner, one of the directors stated that the owner strongly believes that you cannot have a decent factory with dirty bathrooms. Talk about "Attitude is Everything!"
After a delicious friendly lunch with the owner, his global sales manager and and the sales engineer, we were picked up by a manufacturer of larger power supplies that are used in CCTV and access control applications.
This turned out to be a pleasant surprise. We looked at some innovative products and came up with some potential designs that we could use in the USA, Latin America and Mexico. This is exciting stuff.
After returning to the hotel for a short break, we went for dinner with the owner and global sales manager of the factory we saw this morning. It was a very pleasant evening at a revolving restaurant high above Shenzhen. The sky was unusually clear, so we could see all the way to Hong Kong's new territories.
We started early, as usual. We were driven to an amazing factory with over 3,000 workers, each working quietly, quickly and efficiently. The factory manufactures transformers, small power supplies and other related products.
What struck me, was the cleanliness and organization of everything from the showroom and meeting room, to the factory floor, including the transformer varnishing areas.
The bathrooms were the cleanest I have ever seen in any factory around the world! On remarking about this to the owner, one of the directors stated that the owner strongly believes that you cannot have a decent factory with dirty bathrooms. Talk about "Attitude is Everything!"
After a delicious friendly lunch with the owner, his global sales manager and and the sales engineer, we were picked up by a manufacturer of larger power supplies that are used in CCTV and access control applications.
This turned out to be a pleasant surprise. We looked at some innovative products and came up with some potential designs that we could use in the USA, Latin America and Mexico. This is exciting stuff.
After returning to the hotel for a short break, we went for dinner with the owner and global sales manager of the factory we saw this morning. It was a very pleasant evening at a revolving restaurant high above Shenzhen. The sky was unusually clear, so we could see all the way to Hong Kong's new territories.
Tuesday, February 23, 2010
China Rev 1.0
Well, today was most interesting.
We were picked up at 8am by the owner of a factory I visited almost three years ago. At that time they had just moved into their new factory. I expected to see some improvements and an increase in activity. Unfortunately, it appears that they have been struggling since. They do have one new product that could be interesting. The problem is that the huge effort we would have to put into the factory to get them to manufacture to acceptable standards would most likely not be worth it. So we cut the visit short and returned to our hotel.
After lunch, we were picked up by another company. This time there was a mini-bus with a driver and the factory representative. After a 45 minute drive, we arrived at this amazing industrial park, entirely for the use of the one group of companies under a single banner.
The factory tour was impressive, but the showroom was extraordinary. It was huge, and displayed all their products extremely well.
The quality control in the manufacturing process was apparent. Although they do not have UL approvals, the process would be reasonably easy considering their quality control standards.
They have a large range of products which could almost meet all of our needs.
We spent a lot of time with them, drove back to our hotel and continued the meeting until almost 7pm.
This second meeting has huge potential. We are going to get started on the process of trying to get the two companies, ours and theirs, to work together in a formal way.
A great day in China!
We were picked up at 8am by the owner of a factory I visited almost three years ago. At that time they had just moved into their new factory. I expected to see some improvements and an increase in activity. Unfortunately, it appears that they have been struggling since. They do have one new product that could be interesting. The problem is that the huge effort we would have to put into the factory to get them to manufacture to acceptable standards would most likely not be worth it. So we cut the visit short and returned to our hotel.
After lunch, we were picked up by another company. This time there was a mini-bus with a driver and the factory representative. After a 45 minute drive, we arrived at this amazing industrial park, entirely for the use of the one group of companies under a single banner.
The factory tour was impressive, but the showroom was extraordinary. It was huge, and displayed all their products extremely well.
The quality control in the manufacturing process was apparent. Although they do not have UL approvals, the process would be reasonably easy considering their quality control standards.
They have a large range of products which could almost meet all of our needs.
We spent a lot of time with them, drove back to our hotel and continued the meeting until almost 7pm.
This second meeting has huge potential. We are going to get started on the process of trying to get the two companies, ours and theirs, to work together in a formal way.
A great day in China!
Monday, February 22, 2010
China Meetings Rev 0.1
We arrived in Hong Kong late last night. After clearing immigration and customs, we took a mini-bus limo through the Hong Kong and China Mainland border posts into Shenzhen.
We spent a few hours today preparing for our series of meetings, which start early tomorrow morning.
It will be interesting to see how these two factories have changed since I saw them last about two and a half years ago. I will report on this blog what I think of the changes.
Watch this space tomorrow for more details..........
We spent a few hours today preparing for our series of meetings, which start early tomorrow morning.
It will be interesting to see how these two factories have changed since I saw them last about two and a half years ago. I will report on this blog what I think of the changes.
Watch this space tomorrow for more details..........
Friday, February 19, 2010
China Meetings Rev 0
Hi all. Steve Crow and are are preparing to leave tomorrow for China, where we will be meeting with various manufacturers of exciting new products.
UPG Security intends to bring these products to market through our excellent distribution partners across the USA, Canada, Mexico and Latin America.
Through our Twitter news feed and this Blog, we will keep you updated as we travel from city to city, meeting these companies.
This is a unique opportunity to follow our progress and even to make suggestions as to what you require to make your product offering more dynamic and successful.
UPG Security intends to bring these products to market through our excellent distribution partners across the USA, Canada, Mexico and Latin America.
Through our Twitter news feed and this Blog, we will keep you updated as we travel from city to city, meeting these companies.
This is a unique opportunity to follow our progress and even to make suggestions as to what you require to make your product offering more dynamic and successful.
Friday, February 12, 2010
Security Yard Sign Illuminator
Do you know that UPG Security has an amazing little product that is a no-brainer for alarm installation and monitoring companies.
This is the solar powered LightWatch. This small solar power device is designed specifically to illuminate the security company's yard sign.
What does this do for you?
1. It makes the yard sign highly visible at night.
2. It allows you to advertise your company 24 hours per day.
3. You could even use it as a give-away to existing customers who offer lead referrals.
4. It provides the home or business owner added peace of mind.
The Lightwatch fits on any yard sign stake. Although the LightWatch is solar powered, it can take rechargeable AA batteries.
Right now UPG is offering great deals on this innovative new device.
This is the solar powered LightWatch. This small solar power device is designed specifically to illuminate the security company's yard sign.
What does this do for you?
1. It makes the yard sign highly visible at night.
2. It allows you to advertise your company 24 hours per day.
3. You could even use it as a give-away to existing customers who offer lead referrals.
4. It provides the home or business owner added peace of mind.
The Lightwatch fits on any yard sign stake. Although the LightWatch is solar powered, it can take rechargeable AA batteries.
Right now UPG is offering great deals on this innovative new device.
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