You have a new product idea that you think would be a profitable addition to your existing or new business. Now what? Most startup, small, and local businesses do not have the means and operations to take product manufacturing in-house. It requires expensive equipment and skilled labor to turn your products into a reality. But, that does not make it impossible.
Turning your idea into a physical product requires a design, prototyping, engineering, and then manufacturing. Once you have the physical product in hand, you can work on a process for selling that product to your target customers. By outsourcing the manufacturing process, your business will have more time to focus on the distribution and marketing of that product.
How to Source Products
There are many avenues businesses can choose from to outsource product manufacturing. Wholesalers, dropshippers, and manufacturers all provide options for sourcing products. But, not all these options will provide your business with equal benefits. If you are interested in custom products, you will want to consider manufacturing over dropshipping.
Distributors
Distributors offer bulk products at a lower price to retailers who then markup that cost to sell to their customer base. Buying product from a distributor can save SOME cost, but there are also downsides. Buying from a wholesaler means that the product is already made, and is impossible to customize to fit your brand.
Businesses will not have a say in how the product is designed, and adjustments to the product, based on the needs of their customers, is impossible. In addition, your business is susceptible to the unpredictable factors that come from manufacturing. Quality control is left to the hands of the distributor . Any issues with manufacturing or importing from their manufacturing facility will directly impact your business. Your business is also subject to any fluctuations in pricing that come from the distributor, and supply is often unpredictable which can lead to inventory shortages. Lastly, being one of hundreds of brands buying from a distributor can lead to brand confusion and apathy from the consumer.
Dropshipping
With dropshipping, businesses buy generic products to then sell to their customers. These products are often low cost to manufacture. Along with the same lack-of-control downsides as distributors, dropship products are difficult to stand out in a competitive market. Generic products from dropshippers can be sold by any business, while they lack the unique or custom designs of products from a manufacturing facility. It is very difficult to stand out selling drop shipped products which leads to very high price competitions among brands, cutting into profits for your company.
Manufacturers
While the costs are often higher for custom manufactured products than what can be sourced from dropshipping or distributors, the benefits can outweigh those costs. Businesses who want to stand out from their competition can offer custom products sold by no other business in their industry.
Outsourcing to a manufacturing facility overseas helps reduce the costs of custom made products. But, most businesses do not want to deal with import logistics. Working with IPS is an ideal solution to reducing costs on custom product manufacturing without having to work directly with a manufacturer. IPS only works with trusted and secure manufacturing facilities in China, Taiwan, and Vietnam, overseeing every step of the process
How Much Does Manufacturing Cost?
The cost of outsourcing manufacturing can vary drastically, and depends on the products your business requires, the difficulty of producing that product, and even the number of units your business needs. While product manufacturing often costs more than dropshipping, you are assured a higher quality product that stands out in a competitive market that only YOU can sell.
Product Sourcing Abroad
There are plenty of benefits to sourcing your products abroad. IPS’ manufacturing facilities in China, Taiwan, and Vietnam consist of highly skilled labor. Costs for manufacturing in those countries are significantly lower than the cost of manufacturing within the U.S., as they require lower labor costs, lower overhead costs, and lower raw materials cost.
One hesitation that most businesses have with sourcing products abroad is having to deal with import logistics. Dealing with customs to import products to the U.S. can be difficult for small businesses to manage alone. This is why IPS oversees every step of manufacturing including importing your products. We import millions of products annually and have the experience and ability to handle your import needs.
How Soon Can I Receive Products?
It’s worth noting that choosing a dropshipper or wholesaler/distributor does not always mean quick product sourcing. When businesses hear of manufacturing facilities overseas, they may initially think of how long it will take to receive these products. While there is no quick solution to sourcing products from abroad, dropshipping and wholesale/distributor products may not be the more efficient solution..
Consult with our experienced team to learn more about how long it would take to manufacture your custom products.