Questions to as a prospective manufacturer

When calculating costs for manufacturing your product, you should ensure that the direct costs involved in manufacturing is not more than 25% of your retail price and the distribution costs not more than 50-60% of your retail price. Therefore, it is important that you ask any prospective manufacturers some key questions in order to ensure there are no hidden costs involved.

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What types of products do you make?


You must find a manufacturer that has experience in making the products that you want as many will specialise in the production of a variety of objects but may not have the experience you want or need for your line. Do your research on them once they inform you of their experience.

How familiar are you with the quality control standards in my industry?


It is really important to hire a manufacturer who has inside knowledge of the industry as they will prove much more effective if they know what standards they are expected to achieve and what regulations will be in place.

What about safety standards for my industry?


This is similar to the last question but safety is extremely important in manufacturing and there will be plenty of savings in time and research if you pick the best manufacturer for the role.

What materials do you usually use and what processes do you suggest for making my product?


Manufacturers will have different levels of experience with various materials. Your product may be a combination of materials and it is important to know which ones the manufacturer is familiar with. It is a good idea to obtain samples of the materials that the manufacturer will be using. Asking for advice on the processes will also help demonstrate the manufacturer’s knowledge on the subjet.

What is your minimum production run?


This is an important question for economic reasons. Your potential manufacturer may not make a run as small as you can afford and even if you did have the funds, you may not have the space to store everything. You should get quotes for a variety of sizes of runs.

How many samples are you able to provide and how much will you charge?


Samples are extremely important and you need good quality samples when making initial purchases. It is good to know the answers about the samples from the word go.

Do you produce packaging and if so, how much?


Obtaining packaging from your manufacturer is often a good idea and it is a good idea to work out your options at this point and factor the costs into the total manufacturing price. It is important to obtain samples of packaging materials too.

What are your payment terms?


Most new working relationships will require payment up front as the trust has not been built yet. However, it is useful to know if your manufacturer will offer you credit as this enable you to pay for manufacturing costs directly from the proceeds of the sales, thereby allowing you not to take out any extra financing.

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