Make It, Market It: An Introduction to Product Manufacturing
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Originally Posted On: https://tribunezone.com/make-it-market-it-an-introduction-to-product-manufacturing/
Did you know that 30,000 brand new products get launched every year? Innovative product ideas and great product manufacturing help 10% of those new items succeed.
Are you worried that your new product design will fall into the 90% that fail? The best ideas still require a deep understanding of product development basics.
Our guide will explore how to choose product manufacturers and create your product the right way. Read on and start developing your products with confidence.
Find Product Manufacturing Companies
There are two main ways to find a reliable product manufacturer. One way is to ask different business owners for referrals. The second way is to use a manufacturer directory.
Visit multiple manufacturers in person if possible. Screening them through a phone call saves time and money. However, meeting in person makes a better impression and helps negotiations.
Make a note of their minimum order quantity for customized products. Manufacturers usually only make a product sample after you’ve agreed to the minimum order. The more quantity you buy tends to lower the cost per item.
It’s more cost-effective to order higher quantities, but you must be sure you’ll move the inventory. You should go with the lowest and most affordable quantity option if you’re simply testing the market.
Local manufacturers are easier to communicate with and locally made products have more appeal. Although, overseas manufacturers typically offer much more affordable prices.
Manufacturing Factors to Consider
Once you’ve narrowed down your choices a bit, it’s time to consider more detailed factors. First, find out how long it takes each factory to move from prototype to a full run. Make sure it matches your target turnaround time.
Determine the payment terms of manufacturing candidates. Some factories request upfront payments and others take a percentage from product sales.
Always get a transparent answer about shipping costs. It’s important at the local level and even more so if you choose overseas manufacturing.
It’s more affordable to deal directly with the factory making your product if possible. But some overseas manufacturers might require a middleman due to language barriers.
Final Questions to Ask
There are a few final questions to ask to maintain a good relationship on both sides. Detailed information also helps manufacturing ERP systems manage business processes.
Make sure that their prototypes are scalable for a full run. Also, determine exactly how quickly they can make your product. Ask if all parts of the product can be made at the same rate.
You should know the manufacturing and shipping costs, but make sure to get a clear total. Ask about any circumstances that might change the price you’ve agreed upon. For example, what happens if they don’t ship on time?
Ready to Develop Your Product?
Now you know the basics of product manufacturing and how to choose a trustworthy company. Screen multiple manufacturers, take your time and don’t be afraid to ask as many questions as possible.
Check out the rest of our site for more useful business tips and other fascinating topics.