Once you are past the design stage and have fine-tuned your new product as well as you can, the next step is to set up the manufacturing process.
This can be a tricky process, to be sure, and there is a lot of due diligence that must be performed to make sure that your product and the eventual manufacturer are the right fit.
One of the first questions that need to be answered is: do you manufacture at home in the United States or do you outsource manufacturing to a plant overseas? This can mean a very big difference in the profitability of your product.
The fact is, outsourcing your manufacturing can save you a lot of money. There are factories overseas that can produce your product at a fraction of what they can be produced for in the United States, and if set up carefully, the quality can easily be just as good.
That being said, as counter-intuitive as it sounds, we often advise our clients to do their manufacturing locally.
There are specific circumstances where overseas manufacturing would not make sense for you. If any of the below describes where you are at in your business then you are likely better off keeping your production Stateside:
1. The estimated production order of your product is less than 200 units
2. You often need to conduct factory visits and perform hands-on inspections
3. You are in a niche where having a ‘made in US’ tag will be a strong marketing angle
4. Your product requires significant customization from order to order
Also, manufacturing overseas does have its challenges. The potential savings do come at a cost. There is the language barrier to contend with, and there can be delays in the production process now and again that can be troublesome for your delivery schedule.
Deciding whether to do your manufacturing overseas is a big decision, and it is one that you should make taking into account the above four points among other things.
What it all comes to is what is best for your business and the product you are manufacturing. If your goal is to bring a great idea to the market, at a price that your buyers can afford, then it is in everyone’s interest that you set up a good system and solid supply-line to make that possible!
That is one of the reasons we put out an e-book that will take you step by step through the setting up your overseas manufacturing. The information provided will help to shorten the learning curve. Sign up to our newsletter to receive the free ebook
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