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Once you have some final prototypes that look-like and work-like together, it's time to start talking to manufacturers. By this point you should know what components you will need, what materials and methods, and market size/demand, as well as the cost of the parts and the retail price. You need to know if it makes sense as a business to make your product. You have to consider that for a $100 product, you'll sell to distributors at $30-50, who will sell to retailers for $50-70. Of course that depends on the industry, and consumer electronics have thinner margins than clothing or plastic crap, but as a general rule your cost of goods sold needs to be 1/3 to 1/4 of the retail price. You pay 1/4 for COGS. You make 1/4 in profit, your sales/distribution chain makes 2/4.
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If going straight to manufacture in factories is too expensive, you may end up in the chasm between prototype and mass production, where you have demand, but in low quantities, and you can't afford the tooling or assembly line setup or to meet a factory minimum order quantity. At this point you have to get creative and figure out how to manufacture them yourself for as cheap as possible with as high a quality as you can get. This is tricky, but if you can do it, then you can cross that chasm and use your sales as leverage for investment in growth. It will also teach you how you can refine the product for easier and cheaper and faster assembly, and you will end up saving money when you do go to a manufacturer because you will have worked out many of the kinks that can delay a new assembly line.
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Back Fashion Jacket
Once you have some final prototypes that look-like and work-like together, it's time to start talking to manufacturers. By this point you should know what components you will need, what materials and methods, and market size/demand, as well as the cost of the parts and the retail price. You need to know if it makes sense as a business to make your product. You have to consider that for a $100 product, you'll sell to distributors at $30-50, who will sell to retailers for $50-70. Of course that depends on the industry, and consumer electronics have thinner margins than clothing or plastic crap, but as a general rule your cost of goods sold needs to be 1/3 to 1/4 of the retail price. You pay 1/4 for COGS. You make 1/4 in profit, your sales/distribution chain makes 2/4.
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If going straight to manufacture in factories is too expensive, you may end up in the chasm between prototype and mass production, where you have demand, but in low quantities, and you can't afford the tooling or assembly line setup or to meet a factory minimum order quantity. At this point you have to get creative and figure out how to manufacture them yourself for as cheap as possible with as high a quality as you can get. This is tricky, but if you can do it, then you can cross that chasm and use your sales as leverage for investment in growth. It will also teach you how you can refine the product for easier and cheaper and faster assembly, and you will end up saving money when you do go to a manufacturer because you will have worked out many of the kinks that can delay a new assembly line.
Mars HeatTech™ Pullover
Ajax Full-Zip Sweatshirt
Back Fashion Jacket
Once you have some final prototypes that look-like and work-like together, it's time to start talking to manufacturers. By this point you should know what components you will need, what materials and methods, and market size/demand, as well as the cost of the parts and the retail price. You need to know if it makes sense as a business to make your product. You have to consider that for a $100 product, you'll sell to distributors at $30-50, who will sell to retailers for $50-70. Of course that depends on the industry, and consumer electronics have thinner margins than clothing or plastic crap, but as a general rule your cost of goods sold needs to be 1/3 to 1/4 of the retail price. You pay 1/4 for COGS. You make 1/4 in profit, your sales/distribution chain makes 2/4.
T-Shirt
Consequat a scelerisque suspendisse vel et eget eu vitae adipiscing nibh scelerisque semper cum adipiscing facilisis adipiscing est accumsan lorem vestibulum. Aliquet mus a aptent ullam corper metus accumsan. Habitasse a purus nec ipsum a urna ac ullamcorper varius metus blandit posuere.Consequat a scelerisque suspendisse vel et eget eu vitae adipiscing nibh scelerisque semper cum adipiscing facilisis adipiscing est accumsan lorem vestibulum. Aliquet mus a aptent ullam corper metus accumsan. Habitasse a purus nec ipsum a urna ac ullamcorper varius metus blandit posuere.
Henectus tincidunt
Consequat a scelerisque suspendisse vel et eget eu vitae adipiscing nibh scelerisque semper cum adipiscing facilisis adipiscing est accumsan lorem vestibulum. Aliquet mus a aptent ullam corper metus accumsan. Habitasse a purus nec ipsum a urna ac ullamcorper varius metus blandit posuere.
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Men Fit Short Shirt
If going straight to manufacture in factories is too expensive, you may end up in the chasm between prototype and mass production, where you have demand, but in low quantities, and you can't afford the tooling or assembly line setup or to meet a factory minimum order quantity. At this point you have to get creative and figure out how to manufacture them yourself for as cheap as possible with as high a quality as you can get. This is tricky, but if you can do it, then you can cross that chasm and use your sales as leverage for investment in growth. It will also teach you how you can refine the product for easier and cheaper and faster assembly, and you will end up saving money when you do go to a manufacturer because you will have worked out many of the kinks that can delay a new assembly line.
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