For Nathan Resnick, the founder of Sourcify, the awe with manufacturing began during his years selling those silicon bracelets in middle school. At the age of twelve, he’d buy them in bulk from China and sell them for a profit to his classmates.
By his freshman year of high school, Resnick became fascinated with China and started studying Mandarin. 2010 was when he took the leap and joined the School Year Abroad program in Beijing, where he and forty-eight other high school students spent a full year living with a host family and attending a local Chinese high school.
(Can You Spot Nathan with his Chinese Classmates)
In his year immersed in China, studying four hours of Mandarin a day, Nathan became amazed by the thriving markets on the weekends. In the Ya Show market, as an example, Nathan learned the ins and outs of haggling and when a shopkeeper started with a price of 2,000 RMB, he tried his best to knock the price down to 200 RMB.
The markets began his stomping grounds on the weekends and he eventually became friends with some of the shopkeepers who explained the ins and outs of their own supply chains. Though the goods at all these markets are considered fake, some of them do actually come from the manufacturers that produce the real products.
When a manufacturer needs to produce 100,000 identical products, there is no way they can produce that exact amount so each production run will have overruns. Factories will then often sell these additional products on the black market, as their client doesn’t want more than 100,000 of that product.
(Nathan Haggling with a Shopkeeper in 2010)
His year in China has enabled him to bring dozens of products to market, become part of Kickstarter campaigns raising a total of over one million dollars, and run a few ecommerce companies (one of which grew to just over six figures in revenue in the first year).
Being in the ecommerce industry and seeing it’s trends, Resnick knew hundreds of entrepreneurs that had trouble manufacturing. They were either getting burned by frauds, producing poor quality products or overpaying for their products.
That’s where the idea for Sourcify came from. Sourcify is a startup based in the San Diego Evonexus incubator that is on a mission to make manufacturing easy. They have a platform that connects companies to the right manufacturers and walks them through a production run using their project management tools.
This makes it easy for any entrepreneur to either turn an idea into an actual product or cut costs. When a company comes to Sourcify looking for supply chain help, their platform has saved an average of 65% per unit.
Resnick says this stems from people not understanding their supply chain and the manufacturer who is actually producing their products. You see, manufacturers usually fall into three categories: factories, trading companies, and wholesalers.
Trading companies and wholesalers are all middleman and usually make money by taking their own margin. Some companies work with them to mitigate risk or handle low order sizes. What most entrepreneurs don’t realize is that factories should be their go-to source, as you’ll have the highest profit margin and with the rise in global trade, most factories have sales representatives who can speak basic English.
Though Sourcify is a early stage startup, their growth has been exceptional and they’ve helps hundreds of companies produce everything from watches to bunk beds. They introduce you directly to factories so there’s no middleman. You pay Sourcify a monthly subscription fee to use their software.
They have an official manufacturing partnership with X-Cart and are building out their platform to plugin to Shopify and BigCommerce. This will enable any ecommerce entrepreneur who has that dream of creating their own online store to easily bring their products to life.
Amazon sellers have also used Sourcify to manufacture for their Amazon stores. With the world trending towards ecommerce, it’s no wonder where these stores will go to find the right manufacturers to work with.
If you’re an investor, this could be a great opportunity to get in on the next big startup as Sourcify looks to close a early seed round.
For now, if you have an idea you’ve been looking to manufacture, it’s time to try Sourcify. They’re bridging the current gap between having an idea and actually producing a product. In the future, I see this company enabling anyone to manufacture a product around the world.
Opinions expressed here by Contributors are their own.