If you are working on development of the unique and custom product, you need to take into account, that your innovation might require opening new mould with some factory in China. This means, the factory will work on creating a special plate matching the shape of your product, which will after that serve for sampling and mass-production.
When opening new mould, it is important not to be mistaken about the choice of the supplier for two main reasons. First of all, the commitment to a factory and secondly, because it implies significant costs. This article proposes to deal with tips to consider before taking this step. We will therefore analyze the necessity of choosing the right supplier, before pointing out that being sure about a successful packaging for the product needs to be considered beforehand as well.
Picking the right supplier
In spite of a huge number of factories in China, selecting the right factory can sometimes be a tricky task. It is not only about spotting the one that offers the best prices, but the best terms in general and, for sure, good quality. The important part is checking if the factory has any audit, which means an examination of the factory by well-known companies (such as Coca-cola, Walmart, Disney, etc) and that guarantee a quality assurance for these factories. Likewise, the factory products need to have certificates. For example, products that are going to be exported to Europe need the CE certification. Moreover, working conditions within the factory needs to be absolutely irreproachable, as we greatly care of the respect for the employees.
It is a good thing to also take the time to discuss with factories and ask them questions regarding their experience, know-how and also their history. This is a choice that will imply a commitment, a long-term relation with the factory and you consequently need to be sure about this.
Being convinced about the design of your product
This point is important because of the costs, involved in creating a new mould. Here are roughly estimated costs for the moulds for different materials, which vary significantly depending on the complexity of design and specs of the product.
You can see that if you consider creating a custom-shaped product, you should consider high quantities for your mass-order, to make the unit price more efficient.
That is why, it is absolutely necessary to be sure about the final result you want to achieve, before arranging the mould. Otherwise, any changings in the mould after it is finished, might require significant extra costs. The best way to avoid any mistakes is to use an experienced design team to create a 3D file.
Being convinced about the packaging of a product before opening a new mould is important as well. You need to feel how the final result should look like, and adjust the packaging to your product. No company wants to experience a fail on the market, lose money and time, because of not successful packaging chosen for promotion.
- Negotiating better terms
The offers from different suppliers are never the same. One factory can offer a better unit price, but expensive mould, while another one is willing to work for cheap price on the sampling stage, but quotes high unit costs. This is why we need to constantly negotiate better terms with our suppliers.
It is also important to be able to keep the unit price the same as quoted after the mould is opened already. Indeed, some factories take advantage of companies that are committed to them to charge them more. Moving a mould from a factory to another is a solution for this issue, however, it’s a very complicated process which should be definitely avoid. This is why choosing a trusted supplier is a key point for sourcing. To avoid this problem, all the unit prices and terms has to be negotiated and stated in the contract/invoice beforehand.
At ODM we have significant experience in product design, sourcing and manufacturing. We can help you with your marketing budgets effectively. Be sure to contact us if you are interested in finding out more information about opening the mould.