A Guide to Manufacturing Costs and Lead Times
In this video I answer the question ‘What funds should I put aside for production costs? And how long should I allow from order to completion on average?
This video is a snippet taken from a taster coaching Q&A session for my British Brand Accelerator programme. If you’re looking to launch or grow a British-made brand, and want tailored advice in a supportive group with 1-2-1 support, find out more here.
What Funds Should I Put Aside For Production Costs?
- Before considering production costs, it’s essential to factor in sampling costs.
- Manufacturers typically charge about double for sampling compared to production (but depends on product and manufacturer)
- It’s crucial to get your sampling right the first time to avoid unnecessary costs.
- For production costs, the price varies based on the product and the manufacturer’s minimum order quantity.
- I recommend starting with smaller quantities to start with, even if the cost per piece is higher, to minimise your risk.
- You won’t get your best margin on the first order, but it’s better to test the market first.
How long should I allow from order to completion on average?
- Lead times vary depending on the time of the year and the type of product.
- Manufacturers have peak seasons so allow for this.
- Lead times can change based on how busy the manufacturer is.
- As a general rule of thumb, allow at least 8-12 weeks for your first order.
- Start developing seasonal products off-season to benefit from manufacturers’ lower workload.
- Raw materials and labels can delay the production process. Make sure you have all raw materials ready before placing a production order.
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