YouTube scripts: MorphoMFG

Opens with a disclaimer, then an example of what goes wrong with bad factories.

DISCLAIMER: For what I'm about to say, there are exceptions. But as COVID rampaged through China, bad factories started disappearing like a house of cards in a hurricane. Most of them went bankrupt. Then, most of the purchasing and sourcing agents left because they had no work. And what replaced them all were specialist companies that stayed in business. I'm talking about specialised companies that make components that can't be made anywhere else in the world. These guys weathered the storm because the quality of what they do is simply unmatched.

Just the other day, I saw an article. It was another piece talking about how Apple is trying to move its manufacturing to India, Vietnam, or whatever. And the article said: “It is not reasonable to expect for this to happen in the next 10 years.” And later on they clarified that 5-10 years seems to be the absolute minimum for them to move out of China, and that's Apple we're talking about.

Now, it's true that part of the reason why this would take a decade or more is because Apple is huge. They've perfected their manufacturing process here in China, especially in Zhengzhou, and packing up and taking all of that to another country is an enormous task and a risky one at that. So risk-alleviation is definitely a part of the time needed.

So does that mean then that a small or mid-sized business could pack up much easier, and faster? Especially a company that makes a far simpler product? Well, no. In fact, it's impossible for them. Why? Because China is simply where manufacturing is right now.

That means 1. Infrastructure, 2. Workforce, 3. Specialist factories, and a bunch of things in between. For a small to mid-sized business to go to Vietnam for example, they need to wait for a giant like Apple to go there and set up all of that first. The simple truth is that a whale needs to break the ice before everyone else can sail their ships there. And right now, that ice is 10 times thicker and higher than “The Wall” in Game of Thrones.

For small to mid-sized businesses, almost any other country besides China is a barren wasteland full of White Walkers, and those White Walkers have 1,000+ MOQs, and they almost don't wanna work with you anyways, they're focusing on the big guys first. They need them to basically set up another manufacturing powerhouse before they start caring about making 600 ping-pong tables for you.

I've been here in China, running a contract manufacturing business for the past decade, and from my perspective: China isn't only the best, it's the only place in the world where the high-end stuff can be made. For products that want to be the Rolls Royces and Rolexes of their industries, China is the place to be. And to make those high-end products, you need Chinese factories that specialise in necessary components, and then you need somebody to make those components into products. That's where we come in, the contract manufacturers.

The pitch says the company turns down most leads, which fits a high-end service.

If you're making a high-end, unique product and you wanna be at the top of your niche, obviously we'd like to hear from you. But that doesn't mean we'd be a good fit. In fact, we don't work with the majority of the leads that come in. When using a CM, you need to find one that's a good fit for your product, with just the right connections with factories that specialise in the exact components and materials you need. There's a link in the description with 5 tips that will help you easily identify the best CM for whatever you're making. Check it out. Peace.

Tells the story but holds back the main reason until later in the video.

They filed patents, trademarks, all sorts of things. And when their product went big, people copied the sh*t out of them. But for one single reason, this didn't matter at all.

In a world where hundreds of thousands of products are made in a year, all sorts of things will happen. But the gist of it is this: They're much more likely to copy something that's a proven success than something that's just an idea on paper. So don't waste too much time & resources on your IP, instead, make sure you have the upper hand when and if your product goes big.

It's a common misconception that Chinese factories will steal your product idea if it's good. The issue with that thinking is that every idea ever is potentially a good idea, right? You never know what's going to go absolutely viral. So does this mean these factories copy every idea they see because they all have this potential? Of course not. They don't lift a finger until the idea makes a killing. Then they copy you and come into the market with a lower price. Yes you can slow them down, or stop a really big player from directly copying your idea, but if the product is hot, it's gonna get copied, full stop. But the good news is, if you do things right, it won't matter.

A real client case, explained in three numbered steps.

We have a client who used our component control method to protect their IP, and even though their product was still copied, the copycats were ignored because our client was already known as the main player in their market. So the point is this: 1. They did everything they could to protect their IP. 2. The product was really successful & got copied. 3. It didn't matter at all, and if anything, the copies sort of served as advertisements for the original product.

Your job isn't to play defense and spend 10s or 100s of thousands on protecting your IP for something that could fall flat as soon as it's out. Your job is to combine IP protection with an aggressive push on the market so you establish yourself as the Rolex of whatever you're making. If you need guidance, reach out through our website - morphomfg.com.

Of course, there's a lot more to say about this that isn't a fit for these videos. But if you'd like to get up to speed on everything you need to know about manufacturing your unique product in China, link's down below - we've got free guides on all sorts of things you're gonna want to know. Until next time. Peace.

The opening copies the style of scam ads, in a video about scams.

Scammers in the manufacturing industry don't want you to know this one simple trick!

Seriously though, here's a bunch of different ways you can lose your money, your time, or both. Some of these are outright scams, some are just practices shady businesses use. Let's get into it.

Each item names the scam, the tell, and the defense, so the list works as a checklist.

#1 is your standard payment scam: If you're talking with someone that seems to be in a bit of a hurry, has a deal that seems too good to be true, and then they ask for payment through MoneyGram or Western Union or similar, not to mention gift cards - huge red flag that they're scammers. MoneyGram and WU are legitimate platforms, but the fact is scammers love these because of their worldwide availability.

#2 is all about low-balling: They give you a great initial price to hook you in, then they jack it up for bulk orders. If you see things that don't seem to make sense, don't just go along with it or assume there are costs you don't know about. Check everything.

#3 is free samples: There are a ton of scammers out there pretending to be companies, traders, or whatever. They'll offer a free sample of your product as a sign of good will, and after you invest some time going back and forth with them, they'll advise you that there is a “shipping” fee you need to pay to get your sample. In some cases, you'll get a bad version of what you expected, and in other cases you won't get anything at all. Note that they can fake tracking info too, so if you receive a link that shows there's a package on its way to you, it might be fake.

And that kind of leads into #4, which is identity theft: Scammers steal identities and impersonate reputable companies all the time. They might be after your data, they might be trying to redirect your payment, steal your banking info, or everything above. Check the email address of every email you receive carefully, for example our company email address is @morphomfg.com, an impersonator would see that and create an email address that looks similar, for example david@morphomffg.com with two “f”s, or something like that. In a lot of cases, they'll send you an email with an attached file for you to download to check your order or product specifications, and when you open it, it's a trojan virus that steals all your info.

#5 is the hidden fee scam: You spend time going back and forth and once you agree on everything, your bill shows stuff nobody mentioned before. They rely on sunk cost fallacy and hope you'll go along with it and send them the money. Don't.

#6 is review manipulation: As far as I know, all or almost all online review platforms can get fake reviews. This includes the Better Business Bureau (BBB), Glassdoor, Indeed, Amazon, Trustpilot, Google reviews, Alibaba, Aliexpress, Facebook, and especially reviews you see on their company websites or eCommerce stores. These platforms fight fake reviews, but in the nick of time, scammers can post a bunch of reviews and have you look at them before they're deleted. Lesson is, if you're basing your trust on their online reviews - you are asking for it.

#7: Middlemen Posing as Manufacturers: This is not the same as an outright scam, but you are being taken for a whirl for sure. They claim to be factories but are just traders. They'll end up outsourcing your order and who knows what you get. Ask for a factory tour via video call, that should make them pull a Copperfield on you and disappear.

#8 is the good ol' Bait-and-Switch: You are blown away by the sample, you order in bulk, you receive crap. Consider using third-party QC before bigger orders.

#9 is account status abuse: Allegedly, there's a whole market out there that sells stolen Gold Supplier Alibaba or Aliexpress accounts so that they can seem trustworthy. Sadly you can't rely solely on account status; do your due diligence.

#10 is about false location claims: Suppliers falsely claim US/UK addresses, or Chinese addresses for that matter. I've seen this myself, I visited “factories” with a Chinese address that ended up being nothing but a PO box. Always DYOR.

All in all, it's the same old “If a deal seems too good to be true, it probably is.” Stay vigilant, and don't be afraid to walk away from a deal that feels off. If you ever find yourself feeling like you gotta hurry to not miss an opportunity, let that be a trigger for you to remember that you might be in the middle of a scam.

"That's with one f" refers back to the lookalike-domain scam in #4.

And if you're making a unique, high-end product, you shouldn't be using these platforms anyways. For questions, comments are open down below. If you want to learn more about how real manufacturing in China works, visit morphomfg.com, that's with one “f”, and read some of our free guides.

Josh out. Peace.