5 Top Tips to Cut the Price of Manufacturing

In the current economic climate, most businesses both new and established are looking for the best way to cut costs but keep quality high. There are plenty of ways to do just that, all you need to do is follow these five handy tips for getting the most from your manufacturer.

Get to know your manufacturer

Having a good relationship with your manufacturer could help you cut costs in many different respects. Obviously if you use one primary provider of goods for a long time, you are more likely to get a discount for your loyalty.

Build a Good Relationship With Suppliers
Build a Good Relationship With Suppliers

Another benefit of having a good relationship with your manufacturer is that you can ask to be taken on a tour of their premises, take a look at the chain of production and see just what is happening before the goods are delivered to your door. That way you can know if there is any way the process can be changed/streamlined to reduce overall costs.

Take production in house

Even if it isn’t the entire process, money could be saved by taking production in-house. by taking on some of the work yourself you can keep a closer control on the overall quality and price of the goods you are producing, and have a greater influence over the final product.

Use multiple manufacturers

It is becoming increasingly rare that one manufacturer will make every single aspect of your product from start to finish – these days component parts are made by different companies before being assembled elsewhere.

This will allow you to keep the cost down for each part of your product, and will give you the flexibility to choose who makes what. That should have a noticeable effect on your overall costs when the final product is delivered.

Go straight to the manufacturer

If you aren’t making your own product but buying in branded merchandise, the very first thing to do is to go straight to the manufacturer.

This is more prevalent in the clothing industry and will give you a starting point for how much each item will cost; then you can go to other outlets and see if you can get a better deal from another provider who has been able to get goods cheaper straight from the source by buying in bulk.

Order in bulk

The higher quantity of goods you order, the more likely you are to get a discount. At the very least it gives you more room to negotiate with your vendor over price.

Suggest that you may be willing to place a bigger order if the price comes down – this is standard practice in the manufacturing industry and if you are any good at haggling you should be able to get a sizeable reduction.

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Garima is the founder of LoveTheTips.com, a UK based blog offering most useful tips on the topics you love to know more about. She enjoys travelling, blogging and spending time with her 6 year old daughter.
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