One of the common requests we get from customers is to make custom products in small quantities. We’re happy to do it but believe that it would be most beneficial to manufacture large quantities. Many may wonder why the price per unit is so much higher in small quantities than larger ones. Buying in bulk, of course, lowers costs when you buy any kind of product but the savings in custom products is even more substantial. Here are 4 reasons why:
1. Decrease Material Costs
As a custom manufacturer, we buy different materials for each project and have to set up each production run uniquely. Producing large quantities allows us to buy those materials for a lower cost-per-unit and pass on those savings to you. For many companies, they are able to use many of the same raw materials or inputs even if they produce many different products. Their materials don’t change unless they are going in a different direction or need a substitute. Our business trades off lower cost-per-unit for a wide selection of materials. The best way to offset that is to make bigger orders.
2. Can Utilize Automation
Automation gives us the ability to manufacture more products, faster and with more precision. You can only imagine the stark difference between doing everything by hand and completing steps through a machine. Large quantities make it the most worthwhile to use automation since the setup times for each machine can be tedious. You wouldn’t spend 12 hours prepping the oven just to make 3 cookies and we wouldn’t either. Automation is an amazing tool but it only makes sense to use it when it would take less time to do than by hand. Ordering in large quantities makes this much more practical.
3. Less Reorders
Another advantage is that you won’t have to do as many reorders. If the eventual goal is to make 2,000 units then you would save money and precious time in ordering them all at once rather than in smaller increments. There could be the issue of storage but many manufacturers like Trendex will store the products for you until you’re ready. It can be tempting to think that the process will be a breeze but ordering new materials and getting that project scheduled may be more difficult than you originally thought, especially with other projects going on.
4. Easy to Scale
Should you want to ever increase the scale of your program, ordering in large quantities at the beginning is the best way to start. It’s always fickle to calculate consumer demand but there’s nothing like having a ton of business lined up and failing to deliver those orders. Even if you think that you need only 200 items now, what number could it be? If it’s much larger then save yourself the hassle of going through the same process. Ordering large gives you the ability to scale your program and meet that demand.