Choosing A Supplier Based on Price
Most startups easily go for the manufacturing company with the lowest price, especially when they only have limited capital and it would be easier to cut down on production costs. While it is important to pay close attention to the total costs of their product, the reason of choosing a potential supplier should go beyond the upfront manufacturing costs.
Startups should question the way some potential manufacturers are able to offer a very low quote. Do they pay their employees enough? Do they source quality materials and use the proper channels?
Are they capable of manufacturing their products according to their required specifications without taking shortcuts to meet the price stated in their quote? In case they have other questions, they should not hesitate to ask their potential manufacturer and it should be willing to answer them adequately.
When a manufacturer submits an unusually low quote, this can indicate some problems with the company. If startups choose such a manufacturer with sub-par practices, they may finish with poor quality products that are not fit to be used. As a result, they will spend more money in repairing and fixing them rather than if they decided on a reputable manufacturer right from the very start.
The "total cost" gives a wider view of the expenses needed to produce high-quality products. This just shows that deciding on a manufacturing company based on factors such as quality and reputation is a more worthwhile investment than choosing one based on price.
Ignoring Differences Between Materials
Startup business owners may be surprised to know that the manufacturing industry involves a lot of innovation like other prospering industries particularly in terms of driving effectiveness by means of new formulations and materials for products.
Unlike static industries that deal with traditional materials and processes, the manufacturing industry continuously evolves and adapts to benefit those who want to use the best of the latest technology and developments available in presenting new products.
They should always remember that there are manufacturers that have been doing the same things for a long time. However, such practices seldom lead to success. As a matter of fact, thinking about the latest trends is probably what gave them the idea to have a startup. Manufacturing companies that do not use cutting edge materials and production processes will not be a good match for a growing business.
Startups should look for manufacturers that are just like them, finding better and newer ways to do things. Certainly, they can find some out there.
Does Not "Get to know" A Manufacturer
It is quite true that not all manufacturers are created equally. Two manufacturing facilities may have similar capabilities, competencies and spec sheets but businesses will most likely have different experiences with each of them. Manufacturers have their own approaches, specialties and sensibilities that need to be considered in deciding on a partner to work with.
A lot of manufacturers claim that they can do everything but the truth is, there is no supplier that can do just that. No matter what manufacturing companies say in their website, there are differences among manufacturers: on what they focus on and specialize in.
The most effective way to search for and select a manufacturer is to thoroughly examine its business. It should understand startups' products, business goals and be willing as well as equipped to work with them to come up with the best results.
Article Source: http://EzineArticles.com/10341685
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