LRG International is a multi-award winning, environmentally friendly, global marketing and sales promotions business. It partners with a diverse range of companies across a spectrum of industries, supporting both their domestic and global marketing strategies through a wide variety of engaging merchandise, bespoke POS and creative brand solutions. LRG choose Hallosourcing mainly to do customization of film peripherals.

The client LRG International wanted to place a return order for a speaker with the theme “Lyle Crocodile” in Hallosourcing. The construction was the same as that of the “Batman” series, only the name of the product range was different.

Hallosourcing sort out the differences between the customized case and the last time and the product details that need to be paid attention to.

Ruizhi sourcing sent the sample order to the client for confirmation by means of a proforma invoice. Sample prices included the Instruction Manual and the color box. The total sample fee was $***.

LRG asked for a quotation and needed to order ***pcs of the UK version and ***pcs of the German version. The client confirmed that the logo will be partially different and would send the UK version logo first and the German version would be provided later.

1. Hallosourcing quoted the client according to the previous Batman range standards and the quantity required by the client.

400pcs: ***USD           100: ***USD

The sample fee was $*** and would be refunded when the order quantity reached 5,000pcs.

2. Generally speaking, 100pcs was too little to produce(It can not meet the MOQ requirement of the factory at all) and different templates were needed to be made, which would take extra time to complete. However, Through the continuous communication between Hallosourcing and the factory and the old customer relationship that belongs to cooperation with the factory. the factory would help to make these 100pcs finallly.

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1. We received the UK version of the logo from the client.

2. The client needed to update the proforma invoice and ordered 410pcs of the UK version speakers and 100pcs of the German version speakers, mentioning that the order quantity may need to be increased.

3. The client asked if the sample fee would be waived if the order was directly arranged for mass production. In the client’s view, it was also necessary to arrange for samples to be confirmed before the factory mass produced the goods. As the client’s order quantity did not reach 5000pcs, we mentioned again to the client that the sample fee would be refunded only when the order quantity reached 5000pcs.

Package design

1. We informed the client that samples had been arranged and we would directly use the design provided by the client.

2. The factory told us that if the German version of the speaker also needed to be proofed, it would be proofed according to the standard of a new sample, which would also incur a sample fee of $200. As the product was the same, only the printed logo was different, we suggested that the client see the effect of the UK version first. The product effect of the German version would be the same as the UK version and the client also agreed with our suggestion.

The client wanted to increase the order quantity of the UK version of the speaker to 750pcs and the German version of 100pcs remained unchanged and asked if there would be a discount on the price.

1. The client would like to update the order to 750pcs for the UK version and 100pcs for the German version and would like a further price reduction.

2. After confirming with the factory, we confirmed that the price was the same for 400~2000pcs and that the normal starting quantity was 1000pcs. On the same day, the client suggested that the name of the speaker should be displayed as “Lyle Speaker” when paired with the mobile phone. As the speaker was already in the final stage, it could only be realized in mass production. The client agreed on our proposal and confirmed that the order needed to be updated to: 750pcs UK version + 100pcs German version.

1. After receiving the factory’s digital print of the UK version of the speaker color box, the client was not satisfied with the effect of the print and thought the color was incorrect. After confirming with the factory, we informed the client that the color box of the sample was digitally printed and the color would be different from that of the goods in mass production. And the red color code was corrected. The color boxes in mass production would be printed in spot colors.

2. Both the Instruction Manual and the contents of the color box were inconsistent with the UK version and were contrary to our original quotation to the client. (The client order was 750pcs for the UK version and 100pcs for the German version. The total quantity was 850pcs. 100pcs for the German version was a small order, but the factory agreed to do it for us on the premise that only the logo printed on the speaker itself was different, so the cost of the logo for the speaker was taken by the factory. We received the German version of the logo from the client and found that in addition to the logo of the speaker itself, the Instruction Manual and the color box logo were also different. So it involved breaking the mold again and re-proofing, and the client also had to bear the $*** sample fee.)

3. The client argued that the order for the UK version had been increased from 440pcs to 800pcs and therefore still refused to cover the sample fee of $200 for the German version speakers.

4. Confirmation of the way of shipping packing:

Put one speaker into one PE bag first;

Put one PE bag into one color box;

Put 10 sets of the color boxes into an inner carton box;

Put 4 inner carton boxes into an outer carton box which contains 40pcs in total.

1. The client received a sample of the UK version of the speaker and tested its functionality.

2. The client confirmed that the speaker effect was OK and reconfirmed that the speaker’s name needed to be displayed as “Lyle Speaker” when connecting to the mobile phone via Bluetooth in mass production.

3. The content printed at the bottom of the speaker was confirmed with the client as OK.

1. The client wondered if they could save the $200 sample fee if they used the same Instruction Manual as the UK version but used the German version of the color box.

We suggested the following two options with the client.

a. Confirm the $200 sample fee for the German version. The product will have German logo, German spot color printing and German Instruction Manual.

b. Keep the original price. The product will have German logo, UK color box and UK Instruction Manual.

2. At the same time, we explained to the client as follows.

a. Initially, the client wanted to place 400pcs of the UK version of the speakers and 100pcs of the German version. The German version used a different Logo, without mentioning that the Instruction Manual and the color box were also different.

b.The factory usually starts with an order quantity of 2,000pcs and refunds the sample fee when the order reaches 5,000pcs. The sample fee is fixed and to produce 100 different logos is equivalent to a new order for the factory. But as we have been working with the factory for a long time, we convinced the factory to make these 100pcs of German version speakers for us.

c.The UK version of the speaker contains 3 parts: the pattern of the speaker itself + the Instruction Manual + the color box. According to the information previously confirmed with the client, the only difference between the UK and German versions was the Logo, and our quotation was based on this information.

d.Different products require different templates for printing and the cost of the templates is a fixed expense. As the client increased the order to 850 pieces, the cost of the sample fee could be spread over the 850 pieces, so the factory took on this cost. However, when we received the design, we found that the Instruction Manual and the color box were also different and were the equivalent of a new product for the factory. As the UK version of the sample had been confirmed and all the materials for the mass production were in place, these 100 pieces were already mass produced and required specific equipment to complete the production, so there was no way to avoid the sample fee.

e.In order to save costs, we also contacted the supplier to see if we could use digital printing to produce a German version of the color box, which would not have the same final effect as spot color printing, but would at least satisfy the need for the color box to be consistent with the product logo. After contacting the supplier, this option was also rejected. Each color box would need to be completed by hand on a small machine and could only be cut manually. The final product would be very rough and the cycle time would be long, which would involve an increase in labor costs.

f. The final recommendations were as follows:

(1): Confirm the sample fee for the German speakers. The product will have German color box, German logo and German Instruction Manual. Everything will be produced according to the regular mass production standards.

(2): Keep the original price. The product will have German logo, UK color box and UK Instruction Manual.

3. On the same day, the client confirmed the sample fee for the German version.

1. The client received a sample of the German color box and confirmedthat it was OK.

2. A sample of the German speaker was received, but a problem was found where the small print in the vertical column was not aligned with the lower socket, as shown below.

We confirmed with the factory that this problem would be improved in mass production.

The factory confirmed that mass production could be completed on 2022-08-06. The factory itself is in Guangdong Province. We suggested the client arranging for our own QC to inspect the goods according to AQL standards without charging for the inspection, but the client decided to arrange for the third party QC to inspect the goods.The client confirmed arrangements for inspection by a third party V-Trust on 2022-08-11.

2022-08-12 the inspection report failed the first time, we proceeded to arrange problem identification and solutions.

1. We received the V-Trust inspection report from the client and the first inspection failed.

2. According to the QC inspection results, the main problem was that the logo printing was not clear enough and there was a problem of exposed glue, as shown in the picture below.

3. We arranged for the factory to rectify and reprint.

Unqualified printing		Reprint

4. We sent compliance reports to our clients. The compliance report was sent to the client by email.

Goods were reworked and the corresponding reports were provided in preparation for shipment.

1. The client emailed us and asked us to provide MSDS & UN38.3 & RoHS reports in preparation for shipping by air.

2. We reconfirmed the readiness of the reworked goods and confirmed with the client whether the shipment could be arranged.

2022-08-16 We arranged Ruizhi Sourcing’s QC for a second inspection.

1. To ensure that all the speakers were ready, we arranged our QC for a second inspection.

2. As the factory is in Dongguan and the warehouse is in Yantian Port, Shenzhen, we suggested that the client arrange for the truck to be pulled to the warehouse directly, so as to avoid breakage caused by the drop of the express box.

We sent the second inspection report to the client. The client was satisfied and agreed on the shipment. Ruizhi Sourcing arranged the official shipment.