Small quantities – why so expensive?

“I only want to do small quantities” …   Yepp, that’s certainly doable but you must keep in mind that this will impact your COGS. Be it packaging, labels, manufacturing, unit cartons etc.

So what volumes are you talking – as an example, let us say you are a start-up and only want to fill 500 units… Yes, that we can accommodate, but you need to remember manufacturing costs will be amortised over the amount you want to fill.

As an example, you want to fill 500 units – the setup and clean down time on the line is exactly the same as if you were filling 5000 units, hence why the cost is higher.  To understand manufacturing is essential to grasp the intricacies of filling and getting your product to you & I can help you.  Even putting your product into a unit carton still requires set up and set down time irrespective of how many you want to do. 

So don’t be discouraged by the higher manufacturing costs of your product – its just simple maths and the way the world works.  We understand you’re a start up and you don’t want to do big quantities, you only have a small budget etc etc.  But at the end of the day – manufacturers aren’t your bank, they also need to pay wages, and run their business.

So when you are looking at creating your very own product in small quantities, keep in mind that its absolutely 100% achievable, but you need to budget for the higher costs at the start… When you have cash flow behind you and can increase your volumes, then the whole perspective shifts on its axis and you can start hearing Cha-ching!

Previous
Previous

How green is green?

Next
Next

Flip it!