Wondering whether or not you should get your product manufactured in China?
I want to shed a light on some of the pros and cons of manufacturing in China.
Specifically, I’ll be talking to those looking to launch a Kickstarter or Indiegogo campaign. However, these tips also apply to other ecommerce entrepreneurs.
In this video, you’ll see whether or not you should use this country to get your goods manufactured, along with some helpful advice for anyone in the manufacturing stage.
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Let’s talk a bit about manufacturing, because it’s a complex topic
Manufacturing Costs
There are some very important manufacturing tips that we discussed in this post. If you haven’t read it yet, it’s a must-read.
When it comes to any portion of a business process, your costs always should be at the forefront of your mind. That’s what affects your bottom line, and thus, your profitability.
Manufacturing costs come in may forms including:
- Molds
- Materials
- Shipping to your location
- Labor
- Duties, and more.
It’s important to nail down the costs for each part of the manufacturing process so that you can get a good handle on the cost per widget you’ll be selling.
Not only will this affect your ultimate retail price, but it will also determine whether or not your business is profitable in the long run.
Manufacturing Process
When I bought my first iPhone, I thought it was like magic. How is that this super cool tiny machine was created by human beings?
It’s so sleek, elegant, and there is this whole system of production behind the product. This system is what enables Apple to sell the product to the masses.
While the best products seem are alien-like next-generation technology, they were created by fellow human beings.
Why do I mention this?
Because every human being has strengths and weaknesses. Some areas of the world are better at manufacturing clothing and other areas are better at making electronics.
It’s just how it is. A great manufacturing process will take this into account to optimize the quality of the product and the cost of its creation/assembly.
How Do Costs Affect Your Kickstarter?
I thoroughly examined this question in my book, The Kickstarter Launch Formula. You can get a copy on Audible here.
Ultimately, your costs will affect your profitability and your ability to deliver on your promises. It will also affect the size of an order that you can fulfill.
For example, what happens if you have a $25k goal and end up raising $100k? How will that affect your manufacturing systems?
Your costs directly affect the success of your Kickstarter, but it happens behind the scenes. You might have a six or seven-figure campaign from the outside, but on the inside you’re scrambling and trying to figure out how to fulfill orders.
No matter what you do, take the time to figure out this stage of your project, or else you might end up in the red. That can happen even after a successful crowdfunding campaign.
Should You Manufacture in China?
I gotta be honest, it’s a complex question.
I devoted an entire YouTube video to answering it, so I’d go and have a watch first, if you haven’t already.
The simple answer is… that it depends on the type of the product you’re looking to get made. Not every product is going to be a good fit for China.
Also, not everyone is going to be able to interact with factories that do not speak their native language. If you’re thinking this is a strong possibility for your business, I urge you to look into a company like MorphoMFG for some guidance.
