Customize Lyle Crocodile Bluetooth Speaker

Background of Client LRG

LRG International, an award-winning and eco-conscious global marketing and sales promotions company, collaborates with a wide array of businesses across various sectors. It aids in enhancing both local and international marketing efforts through an extensive selection of promotional merchandise, custom point-of-sale materials, and innovative branding solutions. LRG has chosen LeelineSourcing primarily for the customization of movie-related merchandise.

LRG’s Ongoing Partnership for Customized Bluetooth Speakers

LRG International expressed interest in placing a repeat order with LeelineSourcing for a new themed Bluetooth speaker, this time inspired by “Lyle Crocodile.” The design specifications were to remain consistent with the previously produced “Batman” series, with the only change being the product line’s name.

LeelineSourcing reviewed the custom requirements and noted the key product details and differences from the previous order that needed attention.

Sample Approval Process by LeelineSourcing

LeelineSourcing prepared and dispatched a sample order to LRG International for approval, accompanied by a proforma invoice. The invoice covered costs for the sample, including the instruction manual and the packaging box. The total sample fee was $***.

Finalization and Customization Requests by LRG

Upon sample approval, LRG requested a quote for *** units of the UK version and *** units of the German version of the speaker. LRG confirmed that each version would feature a slightly different logo, committing to send the UK logo first, with the German logo to follow.

MOQ Negotiations and Pricing by LeelineSourcing

LeelineSourcing provided the client with a quotation based on the specifications of the previous Batman-themed speakers and the client’s requested quantities.

• For 100 units: ***USD
• For 400 units: ***USD

It was noted that the sample fee of $*** would be reimbursed once the order volume reached 5,000 units. Given that an order of 100 units fell significantly short of the factory’s minimum order quantity (MOQ), and considering the need for different designs, this posed a challenge. Nevertheless, thanks to LeelineSourcing’s persistent negotiations and their established relationship with the manufacturer, the factory agreed to produce the smaller batch of 100 units.

For more information on MOQ and tips on negotiating lower MOQs, click here.

Finalizing Logo and Packaging Details with LRG

1. LeelineSourcing received the UK logo version from LRG and discussed updates to the proforma invoice. The order was adjusted to include 410 units of the UK version and 100 units of the German version speakers, with a note that the order size might increase.
2. LRG inquired about the possibility of waiving the sample fee if they proceeded directly to mass production. LeelineSourcing clarified that the sample fee would only be refunded once the order reached 5,000 units, as the current order size did not meet this threshold.

Package design

Strategic Advice on Version Prioritization by LeelineSourcing

1. LeelineSourcing informed LRG that sample production was underway using the client-provided designs.
2. The manufacturer indicated that creating a sample for the German version would be treated as a new sample request, incurring an additional $200 sample fee. Given that the only difference between the versions was the logo, LeelineSourcing recommended LRG first review the UK version sample. This approach was agreed upon by LRG, understanding that the German version would mirror the UK version’s product quality and design.

Negotiating Discounts for Increased Order Quantities

The client expressed interest in increasing the UK version speaker order to 750 units, while keeping the German version order at 100 units, and inquired about potential discounts for the increased quantity.

1. The client proposed to adjust the order to 750 units for the UK version and maintain 100 units for the German version, seeking a price reduction.
2. After consultation with the manufacturing facility, it was confirmed that the pricing remained consistent for orders ranging from 400 to 2000 units, with the standard minimum starting at 1000 units. On the same day, the client requested that the speaker be identified as “Lyle Speaker” when connecting to mobile devices. Given that the production was nearing completion, this change could only be implemented during mass production. The client agreed to this condition and confirmed the updated order: 750 units for the UK version and 100 units for the German version.

Addressing Issues with Packaging Color Inconsistencies

1. The client was dissatisfied with the digital print sample of the UK version speaker’s color box, citing color inaccuracies. Upon verification with the manufacturer, it was clarified to the client that the sample’s color box was digitally printed, leading to color variations from mass-produced items. The issue with the red color code was rectified, ensuring that mass production would use spot color printing for accuracy.
2. Discrepancies were found between the instruction manual and the color box content for the UK version, deviating from the initial quote provided to the client. The order comprised 750 units for the UK version and 100 units for the German version, totaling 850 units. Despite the German version’s small quantity, the manufacturer agreed to proceed under the condition that only the speaker’s logo would differ, absorbing the cost. However, the receipt of the German version logo revealed changes were also needed for the instruction manual and color box logo, necessitating new molds and samples, with the client responsible for the $*** sample fee.
3. The client contested the additional $200 sample fee for the German version, arguing that the UK version order had been increased to 800 units and should offset the cost.
4. Packaging and shipping instructions were confirmed as follows: Each speaker is to be placed in a PE bag, then in a color box, with 10 color boxes per inner carton, and 4 inner cartons (totaling 40 units) per outer carton.

Final UK Version Speaker Sample Review by Client

• The client took delivery of the final UK version speaker sample for evaluation.

• Upon testing, the client approved the speaker’s performance and reiterated the requirement for the speaker to be identified as “Lyle Speaker” during Bluetooth pairing with mobile devices in the mass production run.
• The information printed on the bottom of the speaker was reviewed and confirmed as satisfactory by the client.

Strategies for Minimizing Sample Costs on the German Version Speaker

1. The client inquired about potential savings on the $200 sample fee for the German version by proposing the use of the UK version’s Instruction Manual alongside a German version color box.

We presented two alternatives for consideration:

a. Proceed with the $200 sample fee for a fully customized German version, including a German logo, German-specific spot color printing, and a German Instruction Manual.

b. Retain the original pricing by using the German logo with the UK version’s color box and Instruction Manual.

2.Further explanations provided to the client included:

a. The initial order comprised 400 units of the UK version and 100 units of the German version, with the latter expected to have a distinct logo but no mention of differing Instruction Manuals and color boxes.

b. The factory’s standard practice involves a minimum order of 2,000 units, with sample fees refunded upon reaching an order size of 5,000 units. Producing 100 units with a unique logo is treated as a new order, but our longstanding relationship with the factory allowed for the accommodation of this small batch.

c. The UK version speaker package includes three components: the speaker design, Instruction Manual, and color box. The initial quote was based on the understanding that the only difference between the UK and German versions would be the logo.

d. Different products necessitate unique printing templates, incurring fixed costs. Although the order was increased to 850 units, allowing for the sample fee to be amortized, the discovery that the Instruction Manual and color box also required customization meant treating these as new products, incurring unavoidable sample fees.

e. To reduce expenses, we explored the possibility of digitally printing the German version’s color box. However, this method would compromise the quality and result in a product that might not meet standards due to manual cutting and assembly, leading to higher labor costs and extended production times.

f. The final recommendations were:

• Confirm the sample fee for a fully customized German version, ensuring all components meet mass production quality.
• Maintain the original cost by adopting the German logo with the UK version’s Instruction Manual and color box.

3.Ultimately, the client agreed to the sample fee for the German version, opting for a fully customized product.

Addressing Sample Quality Concerns

• The client reviewed and approved the sample of the German version color box.

• Upon receiving the German version speaker sample, the client identified a minor issue: the fine print on the vertical column was misaligned with the bottom socket, as illustrated below.

We communicated this concern to the manufacturer, who assured us that this alignment issue would be rectified during the mass production process.

Commencement of Mass Production and Quality Control Measures

The manufacturing plant in Guangdong Province confirmed that mass production would be finalized by August 6, 2022. We offered to conduct a quality control (QC) inspection using our in-house team according to the Acceptable Quality Limit (AQL) standards at no additional cost. However, the client opted for an external QC firm, V-Trust, to perform the inspection, scheduled for August 11, 2022.

Following the Inspection

• The initial inspection report from V-Trust, received on August 12, indicated a failure to meet the required standards.
• The primary issues identified were insufficient clarity in the logo printing and visible glue residues, as depicted in the provided images.
• Immediate corrective actions were taken by the factory to address and rectify these issues, including reprinting the logos.

Unqualified printing Reprint

• We compiled and forwarded a compliance report to the client via email, detailing the rectifications and readiness of the reworked products for shipment.

Preparation for Shipment

• In anticipation of air shipment, the client requested the Material Safety Data Sheet (MSDS), UN38.3, and RoHS compliance reports.
• We verified the completion of the product rework and sought the client’s confirmation to proceed with the shipping arrangements.

Second Inspection by LeelineSourcing

• To ensure the quality of the reworked speakers, a second inspection was conducted by LeelineSourcing’s QC team on August 16, 2022.
• Considering the geographical locations of the factory in Dongguan and the warehouse at Yantian Port in Shenzhen, we recommended direct truck transportation of the goods to the warehouse to minimize the risk of damage that could occur through standard courier services.

Finalizing Shipment

The second inspection report was forwarded to the client, who expressed satisfaction with the outcomes. Following the client’s approval, LeelineSourcing proceeded to coordinate the official dispatch of the shipment.