No matter where your company is located, you need to have a solid source for a manufacturer who can cost-effectively create the products you want to sell. You need low cost country sourcing so that you can work in free-trade zones. There are a number of things to consider when looking for a source.
Before you decide whether you are going to manufacture your own products, outsource them to a local company or source them from another country, you need to decide exactly what you want. Once you know your designs and parameters, you can talk to different companies and find out their capabilities. If possible, work with a team that can come up with a prototype or example based on your specifications. You want to be sure they can create what you want before you order a large number of items from anybody.
It is also important that the company you work with is compliant with all trade laws if your source is not in your country.
Be sure that you compare apples to apples when determining the amount each company will charge you for manufacturing your part. Don’t forget that if the manufacturer is far away, the shipping charges will likely be different from those charged by a local company. However, a company in a different country may have lower costs for labor or better access to materials which can make an item cost less, even after shipping costs are added in.
If you are thinking of building your products yourself, you need to be aware of the costs of the building, machinery and labor required to do the job. Don’t forget that your own time is precious, and you will have to oversee the creation of the products and be on top of machinery and building maintenance as well as hiring personnel.
If you are starting out small, the ability to quickly scale up the number of parts produced may not seem like a big deal. However, if your product really takes off, you don’t want customers to be waiting weeks or months to have their orders filled. Make sure that whoever you plan to contract with has the ability to fulfill both large and small orders. You may be able to receive a discount based on the number of parts being ordered at a time.
Whether you produce it yourself, outsource locally, or work with a company in a different country, getting your product on the market can be a very exciting and satisfying endeavor.