Hello hello!
Welcome back to Seek + Source Summer Camp! I hope you had a blast brainstorming your perfect product last week and that your bunk bed is comfy! After a lot of thought and a few too many cups of coffee, I’ve decided to source pillow covers for this summer camp adventure! I’m so excited to take you along on this journey.
Week 2: Understanding Overseas vs. Domestic Manufacturing
This week, we’re going to dive into why we might look overseas for manufacturing and how it compares to domestic options. Sit back, grab some coffee—this is a juicy one!
Overseas Manufacturing:
Advantages:
- Lower labor costs: Manufacturing overseas often comes with significantly lower labor costs, which can help keep product prices competitive.
- Access to a skilled workforce: Many overseas manufacturers have a highly skilled workforce that specializes in certain types of products.
- Greater flexibility in customized products: Overseas factories are often more flexible with customization, allowing for unique product designs.
- Lower minimums for new products: It’s often easier to start small with lower minimum order quantities.
Disadvantages:
- Quality control issues: It can be harder to ensure the quality of products when manufacturing overseas.
- Communication challenges: Time zone differences and language barriers can make communication tricky.
- Foreign holidays: National holidays in the manufacturing country can delay production.
- Shipping costs: Higher shipping costs and longer shipping times can add up.
- Tariffs and import taxes: These can increase the cost of your products.
From my own experience, starting my business with overseas manufacturing allowed me to play with my margins and scale my business efficiently. Yes, communication and import taxes can be challenging, but the benefits have outweighed the downsides for me.
Domestic Manufacturing:
Advantages:
- Quality control: Easier to monitor and ensure high quality.
- Communication: Smoother communication with no language barriers.
- Speed: Faster turnaround times.
- Supports the local economy: Keeping production local helps support the community.
- Small quantities: Easier to order smaller quantities to test a product.
Disadvantages:
- Higher labor costs: More expensive labor costs can increase product prices.
- Less access to skilled labor: Depending on the product, it might be harder to find skilled workers domestically.
- Higher cost per product: Generally higher manufacturing costs.
I’ve decided to source overseas for pillow covers this summer because of the flexibility and cost-effectiveness. Plus, the potential for custom designs is a little bit easier to find!
🐻 Fun Camp Activity: Bear Spray Adventure!
This week, let’s have some fun with a Bear Spray Adventure! Imagine you're out in the wild and you need to protect your product idea from potential challenges. Think about the biggest hurdles you might face when choosing between overseas and domestic manufacturing. What are your top three concerns? How would you tackle them?
Now, are you ready to have some fun? Remember the Seek + Source Scavenger Hunt? Go find the blog post most suited to learning about three common mistakes when making a new product.
At the bottom of the blog will be a button to submit your name and answer this week’s question: What are your top three concerns about manufacturing a new product?
