Choosing A Place To Manufacture Your Goods
April 23, 2018
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Choosing a manufacturer is an important decision for a business owner. There are more manufacturers available to produce your products than ever before, thanks to easy online communication and increasingly reliable freight routes.
With so many choices, it’s easy for you to get confused and overwhelmed with information.
Local or International?
Manufacturers are typically split into two main categories: local and international.
Both options have significant advantages that could influence your decision.
Producing your goods with a local manufacturer often lends credibility to your product. American manufacturers are known for their high quality work and their adherence to strict regulations. Your business could potentially tap into the market of consumers who prefer to buy ‘Made in America’ goods to support the economy.
Your products could also reach the market faster than if you choose an international manufacturer. However, this depends on the locations of your major consumer. If your customers are located on the other side of the world, it may be a bad idea to manufacture your products in your home country.
Manufacturing in the United States is also significantly more expensive than manufacturing in other countries. With fewer factory choices and workers being paid a higher than international average wage, you will likely end up expending more of your capital than you initially planned.
There are 5 easy ways to find an international supplier, and grow your business. Read about them here.
Let’s look at international manufacturers. Many products are made in East Asia where there are more factories and cheaper equipment and labor costs. Unfortunately, moderate regulations mean some manufacturers can get away with producing low quality products.
Some countries also have lax copyright laws which mean your unique product could easily be copied and reproduced in the same factory. Additionally, much like with local manufacturers, your product could rack up customs charges depending on where it is manufactured and where your main consumer is located. However, with adequate research and proper knowledge of the country’s laws, it’s unlikely you’ll run into this trouble.
Where to Find Manufacturers?
If you decide to use an international manufacturer, it is important you take some time to make the right decision.
Consulting other small business owners is also a foolproof alternative. Manufacturers that come highly recommended from businesses like yours will likely be able to accomodate your needs from prior experience with similar companies.
Once you have found a manufacturer, it’s always best to have a second option. Factors beyond your control could affect the company’s ability to complete your order. When this happens, turning to a previously researched alternative could save you a lot of time.
When using an international manufacturer, it’s advisable to meet them before they start to make your products. It’s important you have as much information on factors like their production methods and their treatment of factory workers. You don’t want to be stuck with shoddy goods and you certainly don’t want to be using illegal labor like sweatshops.
How to Pay Manufacturers?
Once you’re satisfied with your choice, it’s time to figure out a payment method. Many small business owners shy away from using foreign manufacturers because of the issues associated with payment exchange.
Veem provides a headache-free solution for both you and your contractor. Unlike traditional banks which use slow wire methods and charge a significant amount of money, Veem enables you to exchange payments in a shorter amount of time and at little to no cost.
With Veem, signing up for an account is the hardest job you’ll have to do.