How to Choose the Right Manufacturer for Your Product?

manufacturing company

If you are running a new business and need clarification on your product’s requirements or how the product should be manufactured and packaged, contacting a manufacturer is the best way. Now, how do you choose the right manufacturer for your product?

Every entrepreneur should consider a few key factors before choosing the right sample manufacturing company for their product.

Scout Multiple Manufacturers

The primary rule in finding a manufacturer is to not look for only one manufacturer company but scout as many as possible. Generally, you should look out for 2 to 3 manufacturers to be on the safe side.

Doing so can give you an idea of market trends and the average prices so that any manufacturer won’t hoard you. Besides, having multiple manufacturers is advantageous as you won’t rely on only one sample manufacturing company. This would mean that you could escape the monopoly of a single manufacturer, and it would be impossible for them to corner you.

Company Reputation

Once you have scouted and selected a suitable manufacturer company, look at their portfolio and try to search out their history. A company’s track record can tell you a lot about their working style, whom they’ve dealt with, and how you expect them to handle and work with you.

For instance, working with global brands and completing projects timely indicates that the company honors work ethics, and you can expect a decent experience with them.

Reaching out to the company’s previous contractors and performing a thorough background check is also important to ensure that the sample manufacturing company is not involved in any criminal activities so you can save yourself from possible lawsuits.

If you don’t know where to start, look out for answers to the following questions regarding your manufacturer company:

  • Are they a specialized manufacturer of your product?
  • Are they capable of quality testing in their facilities?
  • What is their annual production capacity?
  • Can they handle the shipment and clearance of the products for you?

The Scale of the Company

While sample manufacturing companies working at larger scales have vast experience and can guide you better in your manufacturing journey, small-scale companies often offer greater flexibility. If you think it is worth the experience, learning, and money, you should go for a bigger manufacturer in your field. However, small-scale companies would suit you better if you have an unrestricted budget.

Test Them Out

Client confidentiality is a major factor in determining the professionalism of a company. Use it as a test and try to inquire about the company’s other clients. If they exhibit reluctance in revealing information, you know you can trust the company, especially if you have a formula-based recipe/product with any special component.

Getting your product sampled is the best way to ensure that your product quality is maintained and that you are satisfied with what you are getting. Sampling costs are usually higher as the quantity is quite low, but it is worth the experiment.

Besides, if you have selected one company, keep the other ones at bay, as you want to avoid burning your bridges. You never know when you will have to change or increase manufacturers.

Don’t Settle For the Cheapest

In most cases, the cheapest options compromise the quality of your product, and you surely wouldn’t want to risk that. Low-quality products might be underpriced, but you must acknowledge the fact that they would yield fewer sales compared to high-quality ones.

Make sure to ask for a detailed cost breakdown while sending your product’s Request For Quotation (RFQ) to the sample manufacturing company.

The unit price of your product doesn’t solely determine the cost of your product. Other expenses such as shipment, clearance, product development, and marketing are included to deduce an average per unit price. Hence, while choosing the right manufacturing company, figure out how you can get the best worth for your buck.

Terms of Payment

Deciding the payment terms beforehand with the manufacturer company is their payment plan and which options they have. Ask the manufacturing company whether the complete payment should be made in advance or if they have an installment plan. Keep in mind that you should only pay part of the amount upfront. It is best to pay 25-50% in advance and clear the rest of the payment upon delivery.

Sign an NDA Contract

It is always recommended to sign a Non-Disclosure Agreement (NDA) before submitting any confidential information to the manufacturing company. This is important to ensure your product’s confidentiality and that your sensitive details do not get leaked out to your competitors.

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