Manufacture Your Own Product Or Outsource Manufacturers?

Manufacture Your Own Product Or Outsource Manufacturers?

June 23, 2021

You’ve got an idea for a product – but just how will you manufacture it? Both in-house manufacturing and outsourcing can have their advantages. It depends a lot on your budget, the type of product you’re making, and control you want over the manufacturing process. Below are both styles of manufacturing compared. 

 

Why manufacture your own product?

If you’ve got a craft skill, and you’re looking to sell an artisan product, it makes sense to manufacture the product yourself. You may be able to hire a team of craftsmen to help you with manufacture so that you can manufacture items at a higher rate, or you may prefer to do it all yourself. Either way, you’ll have complete control over the manufacturing process. 

Handling your own manufacturing also allows for easy customization. You can easily change and personalise designs without having to consult with a manufacturer. It could allow you to create bespoke products built to your customers’ unique needs. This is much harder to do when outsourcing a manufacturer.

Manufacturing your own product can have high upfront costs. You need to acquire all the right equipment and materials, as well as hiring employees to help with manufacturing if necessary. Acquiring factory space could also be necessary. You may be able to reduce some upfront costs by buying equipment on finance or leasing machinery, but ultimately it will still be more expensive than outsourcing. That said, choosing to manufacture your own product could save you money in the long run.

 

Why outsource manufacturing?

If manufacturing isn’t your speciality, you may prefer to outsource this service. This allows you to focus on building the brand and marketing the product, while leaving the construction of your product up to experts. Some brands may do some of their own manufacturing, but may outsource other companies to do other parts. For instance, you may already manufacture cleaning equipment, but could be looking to expand your product line – by outsourcing UK chemical companies, you can create and manufacture your own cleaning agent. It’s up to you to then handle the promotion of this product. 

Outsourcing manufacturing is better for products that don’t require a lot of customization. This is due to the communication – if every product is customized, you’ll need to constantly be communicating with your manufacturer to the point that they may as well be employees. Most companies outsource manufacturing for products that are built-in identical batches. This allows a much easier hands-off approach. 

Outsourcing manufacturing has lower upfront costs because you don’t have to acquire all your own equipment or staff. You’ll either pay a monthly fee for outsourcing manufacturers, or you’ll pay per batch. In the long run, this could work out more expensive than doing your own manufacturing, but it depends very much on how regularly and for how long you plan to manufacture your product.

 

Which is right for you?

If you want to be able to put a personal stamp on your product and want full control over manufacturing, it’s better to do it yourself. It’s ideal for bespoke and artisan products.

If you prefer a more hands-off approach and are looking to save money on upfront costs, consider outsourcing manufacturers. This approach is ideal for identical batches of products that require expertise or tools that you don’t possess. 

 

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