So, you’re ready to manufacture your product, but you don’t wanna screw it up!
The worst thing that can happen is that you successfully launch a Kickstarter or Indiegogo campaign and then fail to deliver on your rewards.
Or, worse, people get their rewards, but the product doesn’t work.
I want to save you from that nightmare. That’s why I’ve put together a series of important tips to take into consideration when you’re getting your Kickstarter product manufactured.
These guidelines can help save you a lot of time, money, and costly mistakes. For more tips, I recommend checking out the Kickstarter Launch Formula which goes into fulfillment, shipping, and other costs.
1. Start with Your Prototype
Everything begins with your prototype. It doesn’t have to be super fancy. It can be simply made and just convey what the product will look and feel like. It can be homemade.
I put together a few ways to make your initial prototype. Basically, you’re going to want to go from idea in your head to some kind of sketch or rending and then to a physical prototype you can hold in your hand.
Often times, entrepreneurs will then look into more sophisticated ways to get their prototype made like with 3D printing or try to find a factory that will produce one out of the real materials.
You want to get as many questions answered as possible in the prototyping phase like:
- What will the product be made out of?
- How will it feel in the hand? How much will it weigh?
- What manufacturing techniques are required to produce the product?
Remember if you’re going to be making 1,000 of these things, you want the first one to be perfect, because that’s what your entire design is based on.
The added benefit is that you can then show your prototype to other people, like investors, the media, or companies that you want to help with the launch of your Kickstarter or Indiegogo campaign.
2. Decide on Manufacturing Location
The location where you get the product manufactured is going to affect the cost of the product in a few ways. First of all, there is the labor costs in that location.
For example, hiring someone to manufacture the product in the USA is going to be more expensive than in China because the labor costs are higher in the United States.
Second of all, different areas of the world specialize in manufacturing different types of products. Some might be good for hardware or electrical components. Others might be good for clothing and apparel materials.
I would first determine the optimal location to get your product manufactured, and then you can begin to look for quality manufactures in that region.
3. Vet Companies/Eliminate Middle Men
Many of the manufacturers that you find on websites like Alibaba are middlemen. They’re charging you a fee and work between you and the factory.
Make sure that you carefully vet the companies you are going to work with. Learn where they are located, how their operations work, the products they’ve made in the past, and try to build a relationship with the manufacturer.
Unfortunately, with many areas around the world, there is a language barrier. You’re going to need to take extra steps to make sure that the person on the other end understands exactly what you’re saying.
For those new to manufacturing, this can be a long and arduous process. You gotta break out the excel spreadsheet and start your research. I talk more about this in the Kickstarter Launch Formula.
4. Get Your Feet on the Ground
Try to visit the manufacturer. You’ll be able to quickly assess their operations and develop a relationship with the company. This is the best way to ensure that you’re getting a quality product.
If you can’t physically visit the manufacturer because they’re in China and you don’t know your way around or don’t understand the language, then use a company like Morpho Manufacturing.
These guys have boots on the ground. They can handle quality control and the entire process behind getting a product made. It eliminates a lot of the headache involved in dealing with an overseas manufacturer.
5. Seek Out Help If Needed
I’ve put together a killer list of some of the companies out there that help Kickstarter projects get made. You can see the list here.
As an entrepreneur, you should only do what you’re good at. You’re going to spend so much time trying to find a good manufacturer. Why not just have someone do it for you. This:
- Eliminates headache that comes with research
- Takes care of costly mistake of choosing the wrong factory
- Helps with vetting and quality control
- Set your mind at ease when it comes to the supply chain
You can then spend your time doing what you’re good at. Maybe that’s marketing, influencer outreach, or simply putting together the page with an effective launch video.
6. Expect and Anticipate Delays
Whenever there are large groups of people involved in the creation of a product, there are going to be delays. You simply can’t control every variable.
Something might happen in the country where you’re getting the product made. Ship or air travel might be impended. There might be some kind of delay getting your products into the country.
There are so many reasons why a delay might happen, so be prepared for it. As long as you are clear and transparent with your backers on Kickstarter or Indiegogo, they will be understanding.
Unfortunately, there’s not much you can do about it if a delay happens. Remain calm. Take some deep breaths. This happens to the best of us. Just be patient and handle the customer service.
7. How IP Protection Works
In my podcast episode with Morpho Manufacturing, they explained a few different ways to protect your intellectual property. It’s not as hard as you think, but it does take time and planning.
One easy trick to do this is to source your product parts from different factories. This makes it harder for someone else to “reverse engineer” the product in the future. There is no one factory that has the blueprints.
Of course, you can also look into getting a patent or other form of legal protection. The problem with this route is that patents are difficult to enforce internationally. They are expensive to enforce and the process is long. You’re not always guaranteed a positive result.
Remember that crowdfunding is public. The goal is to build a brand and a host of customers that are loyal to you and your company. An un-intended consequence is that you will attract attention and competition, even if you have a patent.
8. How Shipping Can Kill You
If you’re not careful, the shipping costs for your project can put you into the red. A lot of creators fail to calculate for international shipping. I spent a whole section of my book talking about this.
You gotta think about the different countries and areas where people will be backing you from. The costs to get a product to someone in your own country are going to be different for someone else around the world.
I would recommend breaking out the excel spreadsheet and getting very nitty gritty about the entire supply chain. How will international shipping affect your costs? How will you need to price your rewards or perks on Kickstarter?
Spending a bit of time doing this now is going to save you from difficulties down the road.
9. Skews/Add-ons/Stretch Goals
A lot of products on Kickstarter and Indiegogo have minor product variations. They might come in different colors or have different accessories.
Some creators will also promise stretch goals, or things that you unlock if you hit a certain amount of money. Others might have add-ons, or up-sells for the individual pledge tier.
All of these minor product variations will add on to the costs of fulfilling your project. Take a second to consider how a stretch goal might affect the cost of the product, or the leg work that you have to do.
10. Discover Other Costs Involved
Lastly, there are other elements that can add on to the costs of your project. For example, if you choose to hire a marketing company or someone to help get traffic to your campaign, then it’s going to eat into the cost of your product.
In order for your product to be profitable, it’s necessary to consider how you’re going to get the word out about it. If paid marketing is one of the main channels, then you’re gonna want to add that in to the cost because that will affect the profit margin.
If you spend $20 to acquire a customer for a product that sells for $200, how will that affect your profit margin? These are the types of annoying but important questions you gotta ask yourself before that Kickstarter launch.
