As an established company you may think that you can continue to do business as usual, making money and decisions without thinking twice about it. That is, until you decide to introduce a new product into your product mix. What might be viewed as a simple task by some is enough to get you to stop and rethink how you are doing everything. This is a great opportunity to take stock of your operation and make changes that can improve your business.
One advantage of reevaluating how you run your business is that it forces you to think about how each aspect affects your bottom line. If many years have elapsed since the last evaluation, you might find that there are several places where you could improve operations, save money, or improve product quality. As long as you are introducing a new product, this is the perfect time to rethink how and where your products are manufactured. In today’s global marketplace there are opportunities that might not have existed in the past, such as the large number of China manufacturers available to choose from.
It doesn’t matter what size your company is today, the objective is to grow it for tomorrow. One way to grow is through increased sales, while another is through improved net income. Adding a new product to your mix is one way to address the challenge of increasing sales. By having a greater selection of products that meet your customer’s needs you are likely to sell more products.
It doesn’t matter whether you are selling complex electronic products, or simple toys for children, there is an opportunity to hire a China manufacturing agent and reduce your product costs by moving your manufacturing to China. It is not a coincidence that so many products today are made in China. Many companies have figured out that they can reduce their cost of goods by making this change. Reducing costs is one key way to help improve net income.
The good news for you as you look for ways to reduce your manufacturing costs is that many have gone before you. As a result, there has been an explosion of growth in manufacturing facilities in China, along with the infrastructure to support the movement of all the raw materials and finished products. You can capitalize on this growth and have your new product produced at a lower cost.
Once you make the decision to have your new product manufactured in China, you may determine that the savings are so significant that you realize that you need to move the manufacturing of all of your products. Or, just the threat of moving the manufacturing may give you the bargaining power to lower your costs at your current manufacturer. Either way, you win by lowering your costs and improving the opportunity for increased income.