Crowdfunding can provide a lot of success. It can also create some major distribution headaches. Some companies who unexpectedly raise millions of dollars in pre-orders may suddenly need to increase their manufacturing needs and secure new vendors. Many in this situation end up turning to cheap factories that offer cheap prices. On paper, this seems like a good idea at first. You get the products you need at a price that you can manage in your budget.
The only problem is those who supported your Kickstarter campaign will be able to tell that you aren’t really fulfilling the promises that you made to them. How can customers tell you’ve used cheap manufacturing? Here are some of the most common ways.
Cheap Factories Often Cut Quality Corners
Money has to be saved somewhere. This usually means that the quality of the product is compromised because cheaper components are used. In the worst-case scenario, the worker safety is also compromised on the factory floor. This is something that you don’t want your Kickstarter campaign ever associated with at all. Ever.
Cheap Factories Often Only Make An Approximate Prototype Version
You can do everything right with your crowdfunding campaign. You can even have the prototype ready to go and on film for potential supporters to see. The only problem is that cheap factories tend to not follow the directions that you give them. It’s a great price, but they still will do everything they can to maximize their own profits. In the end, what you end up showing your potential backers might not be the same product they get when their order is fulfilled.
Cheap Factories Don’t Do Any Testing
Even if you have designed your own prototype, it is still a critically important step to test the first factory prototypes that come off the line. If you don’t test the product, you won’t know if the manufacturing process is going to stand up to bulk production. Cheap factories don’t care if they test your product or not. They’re just concerned that you place an order for products.
It is not uncommon for products coming out of cheap factories to be considered unacceptable. Here is the problem that you face if this happens to you: increased costs. By the time you retool the molds and get the manufacturing process where it needs to be to create acceptable products, you will have spent more at the cheap factory without results then you would a professional factory that will help you with test and and retooling.
A Kickstarter campaign that is successful at is a great first step. If you use a cheap factory for your manufacturing, you’ll take two steps backwards. That’s why securing a legitimate manufacturing relationship before going live with a crowdfunding campaign is so important. You’ve already start moving forward. Don’t let cheap products weigh you down.
Strong proponent of individual liberty and free speech. My goal is to present information that expands our awareness of crucial issues and exposes the manufactured illusion of freedom that we are sold in America. Question everything because nothing is what it seems.
