Made to order: how to stay afloat in the rough waters of foreign manufacturing.

• Author: Mark, Rebekah
• Position: Lessons Learned

Successful business people understand two things: The global marketplace is always changing, and to win one must adapt quickly to change.

In today's world there is a constant demand to produce everything better, faster and cheaper, and foreign import seems to be the perfect solution. It has become so popular, in fact, that anyone can do it from their home computer. Over the past decade, there has been an explosion of independent online retailers, thanks to online retailers like Amazon and sourcing sites like Alibaba.

But for those still green to the industry, importing can feel a bit like trying to swim through rough, shark-infested waters. Many have made the attempt and many have drowned.

One Utah company has survived these rough waters: BGZ Brands, LLC. Recently named the fastest-growing phone-accessory company in the United States, BGZ has achieved enviable success, in major part by importing.

Going abroad

Kirk Feller, president and CEO of BGZ, explains that only a small percentage of the company's actual product manufacturing process takes place in the United States. "Nowadays it's next to impossible not to go to China, their pricing is so cutthroat. We can produce product for nearly a third of the cost there," he says.

There are, however, a few barriers to entry in importing. Foreign manufacturers make their biggest profit off bulk production, and most startups aren't looking to purchase thousands of units in their first few orders.

"I would say that anyone ordering under 25,000 units per year isn't at a level to maintain good control with a factory. A great place to start is Alibaba or Globalmarket.com, where you can place smaller orders and work your way up from there," says Feller. "One thing you want to be aware of is that a lot of the time you'll be dealing with a middleman broker, not an actual factory, which means you're being charged more. It's usually small amounts of money but, bottom line, every penny you can save helps."

When looking to develop a long-term relationship, actual visits to the factories are vital, he explains. "We started visiting the factories and bringing returned LDS missionaries that spoke the native language, which helped so much. We were able to pick up on whether we were dealing with a broker or the actual factory manager, and negotiations were a lot smoother."

Recently, BGZ hired a full-time foreign-relations operative, who had lived 10 years in China and is fluent in several languages spoken in Asia...