Bringing a new product to market? Your factory is one of the most critical partners in your success. But not all factories are created equal. Many won’t volunteer key details unless you ask the right questions. Overlooking these can lead to costly mistakes, production delays, or even product failures.

To save yourself time, money, and frustration, here are seven must-ask questions before committing to a factory.

Table of Contents

1. Have You Made Similar Products Before?
2. Can You Share Examples of Past Work?
3. What’s Your Minimum Order Quantity (MOQ)?
4. How Do You Handle Quality Control?
5. What’s the Production Time?
6. How Do You Protect My Design and Idea?
7. What Are the Payment Terms?

1. Have You Made Similar Products Before?

A factory with experience in your product category will likely have fewer mistakes, higher efficiency, and better cost estimates. If they haven’t made something similar, you might end up paying for their learning curve—in the form of wasted materials, production errors, and extra delays.

Ask for specific examples of similar products they’ve made.

Red flag: A vague response like, “We can make anything.”

2. Can You Share Examples of Past Work?

Good factories proudly showcase their past work. They should be able to provide references, case studies, or at least generic examples of similar products they’ve manufactured. However, due to confidentiality agreements, some details may be limited.

Look for quality indicators in their past work, such as precision, durability, and finishing.

Red flag: If they refuse to show anything—even anonymized examples.

3. What’s Your Minimum Order Quantity (MOQ)?

Factories often have minimum order quantity (MOQ) requirements, which can vary widely based on materials, production complexity, and factory size. Some expect high MOQs that might be unworkable for test runs.

Get clarity upfront so you don’t waste time negotiating with a factory that isn’t a good fit.

Red flag: If they push you to order far more than you need or can afford.

4. How Do You Handle Quality Control?

Even the best factories make mistakes. What matters is how they detect and fix them. You need to know:

• How do they inspect products? (During production? Before shipping?)
• What happens if defects are found?
• Who pays for rework or rejected batches?

Ask for their quality control process in detail.

Red flag: If they don’t have a clear answer or say, “We don’t have many issues.”

5. What’s the Production Time?

Factories may promise quick production, but real-world factors like holidays, material shortages, and order backups can cause delays. You need a realistic lead time and should ask what could slow things down.

Note: Production time is often referred to as “lead time.”

Get a clear breakdown of the production stages and estimated timelines.

Red flag: If they promise super fast delivery with no explanation of how they achieve it.

6. How Do You Protect My Design and Idea?

Many factories reuse, modify, or even resell designs if there’s no clear agreement preventing them from doing so. If you want to protect your product from being copied or sold to competitors, you should:

• Ask if they’ll sign an NDA (Non-Disclosure Agreement) or NNN (Non-Disclosure, Non-Use, Non-Circumvention Agreement).
• Clarify how they handle sensitive intellectual property.

Protect yourself with legal agreements.

Red flag: If they hesitate or refuse to sign a confidentiality agreement.

7. What Are the Payment Terms?

Payment terms can impact your cash flow and risk exposure. Most factories will require around 30% as an up front deposit, although for certain product types this may be as high as 50%. The final payment balance is normally due before your goods leave the factory. Plan to negotiate for better payment terms on the initial and subsequent orders.

Negotiate payment terms that protect both parties.

Red flag: If they demand higher than 50% payment upfront with no guarantees.

Choosing the right factory is one of the biggest decisions you’ll make in bringing a product to life. Asking these seven questions upfront can help you avoid costly mistakes, find a reliable partner, and gain confidence in your production process.

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