FAQ

Q:  How do I minimize Cost of Goods (CoG) or maximize my savings?

A: 
Maximizing your savings with overseas production is a combination of several factors. You must first have a well defined product to avoid soliciting a conservative quote from a factory planning for contingencies. Then you must minimize your shipping by selecting or designing a product that fully utilizes the space and weight capacities of a shipping container. You must also consider if any punitive tariffs exist in the US that would make an imported product uncompetitive (we can help you research this). And, your product must be of sufficient volume and repeatability that you can reap economies of scale.

If you have addressed all of those issues then the remaining benefit to producing in China is the substantially lower international labor rates. It is not uncommon to find labor in China that is 1/10th the cost of labor in the US. Therefore, the more labor intensive the product is, the more savings will be realized.

 
Copyright © 2004-2009. Legacy Mfg Solutions LLC. All rights reserved.