Manufacturing Quotes for Your Product
Last week’s focus was on the importance of quality presentations. This week, we will discuss how to obtain manufacturing quotes and their importance in moving an invention closer to market.
One critical step in the invention process is obtaining manufacturing quotes. As an inventor, you must know the cost of your product in order to be taken seriously by potential partners. The manufacturing cost will play a role in many of your financial projections.
The best way to obtain manufacturing quotes is to work with a prototyping company that regularly works with inventors and has experience working with products in your given industry.
You want to ensure that the company you choose to work with has the capability to produce production quality drawings, help you choose the proper materials for your invention, has engineering experience to ensure your products integrity, and has vast experience with prototyping and going to production.
Here are some things you want to look out for:
- ‘Prototyping company’ where you speak with a salesperson rather than an engineer.
- A company that will not sign a basic non-disclosure agreement.
For prototyping, we follow a five step model:
Many inventors do not have the resources to go to production. Obtaining quotes will give you more information about what it will take to get your product to market.
Having already conducted your market research and having a general idea of the price point at which you can sell your product, your manufacturing cost per unit will help you determine your anticipated gross margins at various volumes of production.
It will also give you a clear picture of the overall total investment it will take to get your product to be production ready. Costs will range from engineering to molds. These costs play a vital role in your discussions with partners who will be taking a risk in working with you.
If nothing else, the quotes will give you an idea of what the other party will have to risk and may make you a little less greedy. Remember to value what others can bring to the table. It is rare for someone to become successful trying to accomplish everything on their own. Many inventors have no interest in “sharing the pie”, however, it will mean nothing if your “pie” sits there rotting while you’re still waiting on a fork to eat it.
This week: How to get manufacturing quotes
Next week: How to Create Company Contacts to Fast Track Your Invention to Market
About the author of this article:
Lindsey Yeauger is the Director of Communications for Idea Buyer LLC, a new product development company that owns and operates IdeaBuyer.com- The Online Marketplace for Intellectual Property. The site gives inventors the opportunity to showcase their intellectual property to consumer product companies, entrepreneurs, retailers, and manufacturers. You can email her at Lindsey@IdeaBuyer.com.