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In my case I had no choice but to outsource the manufacturing of our toy.
We were able to sell our toy at 1/4 the price it would have cost us to produce the product here - without including the fact the start up cost on the molds were 1/15th the US start up costs.
We had contracts, design and utility patents, trademarks and were working with the same factory that made the talking fish. Their reputation as Chinese factory's go was stellar.
The just used our molds, boxes and artwork to make the product and sell it around the world and gave us nothing. Told us if we came to the factory they would have the army shoot us since the government owns a piece.
No one would have bought the product unless we were able to get pricing at Chinese levels and at the quality that took 3 years of work to obtain.
Our Korean contract manufacturer knocked us off on another project that was a mainstream product but we crushed their distribution and they tanked. There was enough profit to build it in the US and we did.
Sadly we have the patent on something that many companies are still knocking off and if the main owner with 55% went nuts and was legally incompetent before he died, and then his sole heir his ex wife died. Another owner with 15% wanted to distance himself from adult as he is a high profile Corp lawyer, and my last 15% partner is so lazy he won't do shit, my 15% would be worth a fortune as millions a dollars a year in sales are being wracked up and I haven't seen a cent on 6 years.
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