When you add together the value of labor, raw materials, packaging, shipping and quality control, manufacturing a product can be costly. The costs can increase when you are only producing domestically or in small quantities. Although increasing volume is an excellent way to reduce costs, small businesses may find that increasing production may not be an option. Here are some simple ways to lower your manufacturing costs.
Tweak your design – If you are still producing the same product design as when you started, consider changing it to lower costs. Look at changing some raw materials, components or your products construction that lower your costs.
Remove packaging – If your product has unnecessary packing that increases the cost of your product but does not add value to the products quality or safety, look at omitting it. Look at adding value in other areas like reducing the cost of your product and asking the customer to request for special packing for an additional fee.
Negotiate with suppliers – Speak to your suppliers and ask them if they could reduce the costs per unit. If your suppliers refuse to lower their prices, consider seeking out cheaper suppliers. You can also share the quotes you received with your current supplier to renegotiate rates. However, it is best not to share vendor names or contact info to maintain stable pricing.