OEM / PRIVATE LABEL SERVICES, 2
One will come across the many different terms in the product development business that connects the client (you) to a product development company such as ours.
The two most common terms are:
The following are the basic definitions in this industry:
OEM is an agreement where:
- The client provides a design in the form of a complete illustration, sketch, rough sample or completed sample.
- SERT provides the client with a product development cost that allows for up to two sampling / prototypes. Any additional sample(s) will incur extra costs. Product development cost is based on each individual product and the amount of work anticipated.
- The client is free to take this prototype elsewhere for production but if the clients produces with SERT, 50% of the initial product development cost will be credited for production. An MOQ (minimum order quantity) will be established.
- Once final sample is approved and in-house production is requested we will proceed based on the MOQ.
- In the case of a completed sample, we will provide the service of replicating this sample to a tee for production. We would need to discuss pre and post production samples, if required.
- MOQ is 500 for small items (eg pouches) in standard colors to include Black, Coyote Brown, Med Navy and Wolf Gray. For other colors the MOQ is still 500 but depending on the amount of fabric used, client is responsible for the minimum purchase of 600 yards; for eg if we end using only 300 yards, the remaining 300 yards is yours.
- MOQ is 200 for larger items (bags & cases) and the color restriction applies.
And finally Private Label*, an agreement where:
The client wants to use one of SERT's archived designs or existing products under the client's own label. SERT makes any of our designs, that are a year or older, available for Private Labeling. In such a case the client has options:
- There is no co-branding and the MOQ is 200 in any standard color combination.
- The client does not own the design and once the agreement expires or is terminated, the client is no longer allowed to use that design. The client wants to 'tweak' one of our designs to better suit their market. In this case a product development fee will be charged, credited at production. An MOQ will be established based on the product. The client does not own the design. Should the client decide not to produce after the product development phase, ALL existing product samples will be returned to us immediately.
*In all Private Label situations, a contract will be signed by both parties.
- Current production turnaround is approximately 60 to 90 days but this depends on the time of the year and when your order is submitted. We might have a sizeable contract before yours comes in and that might delay it some. Always work with enough room for delivery. We reserve the right not to take on any rush jobs.
- Freight depends on whether air, sea or courier is required. In general, larger items like bags & cases should be shipped by sea, taking approximately 30 days to the West Coast and 45 to the East Coast. Smaller items are best shipped via air freight (if you plan to clear it yourself and pick up at the airport) or courier (FedEx, DHL, UPS). We can also provide you with a quote that is ex-Factory (no shipping cost included as it would be your responsibility to have the goods picked up at the factory and delivered).
- Quotes we provide are usually FOB Woodbridge, VA for US clients, unless you request otherwise.
- If you have your own freight forwarder we will be more than happy to quote ex-Factory.