Part 2: The Advantages and Disadvantages of Overseas Production

As you can see I can be long winded,so let’s try to get back to the subject which is overseas production vs US  production. As already stated I’m a strong supporter for the latter. I’m only speaking of this in terms of accessory designers starting out with nothing but a dream. I’m only speak about what I know.

My main reasoning, control, quality, better turn around time, and a reasonable amount of flexible. For those reason I’m an avid support of US manufactured products. I also think there’s a great market for  small US manufactures to exploit. They have the capability and capacity to compete on so many different levels.

It will be hard to compete  with labor cost, but we can compete with the other factors that are important to getting your products to market.

If we highlighted these advantages, we may not be able to get all of the manufacturing back. However we could regain some manufacturing and stem the tide of others who succumb everyday to overseas pressure.

  • Shorter turn around time. Orders can be place 30 – 60 days, sometimes in as little as 2 weeks.. Instead of 60 days to  6 months depending on the size of the order overseas.
  • It allows stores to purchase less and yet maintain inventories. Reducing initial capital expenditure  and keep more cash on hand. Resulting in lower inventories. Lower inventories could mean higher profits. No need for constantly reducing the price of your products. I’m going to give you the perfect example below.
  • It allows for greater flexibility in adapting to changing trends in consumer taste. Most orders are 6 months to a year in the pipeline. If something gets hot the stores aren’t stuck with what’s not!

These are just a few advantages that I can think of for designers to pitch when taking with buyers about the higher price points.

If you go with a contractor, you have a vast wealth of knowledge that they bring to the table. They can help perfect your designs, help with resourcing and you can go visit the factory, in most cases for a airline ticket for less then $350.00 . You have control of your product and you have legal recourse.

**The perfect example:

Years ago a product called Danskin Dancewear came on the market. The product was in such demand that the manufacture would only supply vendors who paid up front or on short net terms. They( at the time) kept inventories low and they got paid. Scarcity translates into lower volume and higher prices that can be sustained over a longer period of time.

Setting up your own shop ahhhhhh.

It deserves a post all it’s own! I’m going to tell you the basic setup need to start your own handbag factory. For less then $15,000!  Equipment needed…… everything!

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