Many small businesses decide to manufacture their products offshore. This is usually because the cost of manufacturing in foreign countries is much less. Business owners hope by having their products manufactured overseas they will save money. If you are thinking of manufacturing your products offshore, consider the following :
- Ask for samples. Get the manufacturers you are interested in to give you samples of their products. See how it holds up in your market and watch for quality.
- Meet with the manufacturer. If it’s possible ask for a tour of the factory or the opportunity to talk face-to-face about working together. The ideal manufacturer should have a good reputation, provide quality goods and meet your time lines.
- Get quotes. Get the manufacturer you are interested in doing business with to include a price breakdown of the cost of manufacturing, shipping and handling, materials and customs costs.
- Consider direct costs like shipping, import duties and customs brokerage fees. Will manufacturing offshore still save you money?
- Consider indirect costs too. These could include costs for training, communication, travel and management time. The costs can vary based on the complexity of your product and the flexibility of your manufacturer.
At Winflow Financial Group, our consultants help entrepreneurs with our experience. Tell us about your business or investment today and find out how we can help your business save money and grow.