Finding a manufacturer for your product idea can be a huge task, especially if you have little or no experience with the manufacturing industry.
It’s also one of the most important decisions you’ll make over the course of your crowdfunding campaign. The expertise of your manufacturer is directly related to your ability to deliver the product your promised. The right manufacturer can support a successful crowdfunding campaign, whereas the wrong one can lead creators to disaster.
This is one of the reasons that platforms are starting to market themselves as all-in-one services, with partnerships that make it easier for creators to access the expertise and services they need to succeed.
Examples of this include Indiegogo’s new partnership with Brookstone (a company with expertise in design and engineering, manufacturing, marketing and retail) and Fundable’s recent acquisitions.
So, let’s break down everything you need to know about choosing an affordable, reliable and high quality manufacturer. One that is right for your unique needs.
Types of Manufacturing
There are several different types of manufacturing. To begin your search, you will have to narrow down which type(s) you will need to use for the product you are trying to get funded. This eHow article separates the industry into six categories:
- Clothing and Textiles
- Petroleum, Chemicals and Plastics
- Electronics, Computers and Transportation
- Food Production
- Metal Manufacturing
- Wood, Leather and Paper
Keep in mind that these categories are not always as straightforward as they seem. For example, clothing and textiles applies to most clothing, bedding and fabrics, but polyester (which is synthetic) is considered chemical manufacturing.
Knowing a bit about the differences between these categories will make it easy to pinpoint what kind of manufacturing company you are looking for.
Domestic or Overseas
Another important decision you will have to make is whether you want the manufacturing to be done domestically or overseas.
Keeping manufacturing close to home is a popular choice for startups these days. You often see crowdfunding campaigns that proudly state that their products are manufactured in North America (or wherever they are from).
Domestic manufacturing can sometimes be more expensive, but it makes it easier to physically visit the facilities and keep tabs on their progress. There is also the impression that domestic manufacturers provide higher quality goods and there is less opportunity for cultural differences or language barriers to complicate things.
Depending on the product you want to manufacture, sometimes it is way too expensive or just not possible to find a domestic manufacturer. Many startups choose overseas manufacturing because of lower costs and higher availability. Unfortunately this option can come with a number of downsides, like language barriers, cultural differences, lower quality and longer shipping times. It can also be very time consuming and expensive to travel to see the manufacturing facility and make sure that they have the experience necessary to bring your product to life.
Finding a Manufacturer
Once you’ve decided what type of manufacturer you need and if you want to find one that is domestic or overseas, the next step is to start looking for specific companies that fit your criteria. Finding the right manufacturer can be tricky, but don’t get discouraged.
There are many ways to get started. Talk to any friends or family who might have recommendations, reach out to your social networks, google search, etc. You may not find the right one on your first try but a manufacturer that isn’t quite right can often point you in the right direction.
You can also reach out to other creators that have successfully completed similar projects and ask what manufacturers they used. This can be a great way to find manufacturers that are used to making crowdfunded products and might have lower minimum order quantities than most manufacturers.
If you decide to manufacture overseas in China, here are a few things that you should look out for.
Minimum Order Quantities
Minimum order quantities are one of the biggest issues when creators of small crowdfunding projects begin reaching out to manufacturers. Many creators want to start out on a small scale and often don’t have the money to pay for large orders upfront. Still, there are discounts offered on larger orders that can help you save in the long run.
A manufacturer’s minimum order quantities vary depending on certain factors, like the size of the companies they prefer to work with or how much work is required to make the product. The good thing is that minimums are negotiable – just remember that asking them to lower their minimums too much won’t get you very far.
Reaching out for Quotes
Now that you know a little more about the manufacturing industry and how minimum order quantities work, you’re almost ready to start emailing manufacturers for quotes.
When approaching a manufacturer for the first time, keep it short. You can go into more detail later, but for now give a brief description of yourself and your product to give them an idea of what you are looking for. Some important information that you will want to know are what their minimum order quantity is, their sample pricing, production pricing, the time it will take to complete the order and how their payments work for new customers.
The answers to these questions should give you enough information to see if a manufacturer is a right fit for your project. From this information you can also figure out what your funding goal needs to be in order to meet their minimum order quantity.
If this is your first time launching a crowdfunding campaign, it can be easier to keep things simple instead of trying to manufacture something too complex (this is one of the reasons so many people fund wallets on Kickstarter). That first project can help you learn more and get the experience you need to launch an even bigger and better campaign.
Conclusion
Finding a manufacturer for your crowdfunding campaign can take a while – you don’t want to rush and choose the first one you hear about. Issues with manufacturing can cripple a crowdfunding campaign, leading to missed shipping dates and questions from backers (some who are more understanding than others).
Taking the time to find the right manufacturer, one that you trust is capable of making your product right and delivering on time, can help increase backers’ confidence. Finding a manufacturer with a proven track record and having them lined up when you launch shows backers that you know what you’re doing and are ready to bring the product they supported you for to life.
