Why would manufacturers create your product when they can do the same and profit?

[mrskib]

With a product idea in mind, there's a problem - why would a manufacturer even create my product if by doing the same thing they could profit? There's no way I'd be able to hand-make it.

 

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[theag]

Because creating and manufacturing products is the easy part. Selling them at scale is the challenge.

 

[SEBASTlAN]

Some do - after you've proven the concept and generated demand.

The rest usually don't have the skill, time or wherewithal to invest in a brand, patents, IP etc. from scratch. They typically have many clients already in the same space (you being just one of them) and it makes more sense financially to keep doing what they're already good at, as opposed to competing with their own customers and risk losing the supply side of the business.

 

[Jesse Ocoly]

This is something we've all thought of before..., like why shovels don't dig themselves or the tinkers from Tinkerbell don't finally build a timemachine or the why the business lecturer is not a business man..., or why A+ students always end up working for someone, the thing is just like the best Math teachers, problems are all theyre good at, heck, their efficacy is predicted upon the complex questions they can find answers to, but you see all they are, are tools, and just any tool, it has its Manager, or like a powerful program has its "Instruction giver",
Not really sourcing and quantifying the parameters their problem entails to solve them, but to fulfill the managers goal, and the parameters and problems He gives
...bEileve me this is rooted once again in the fact that School makes us Tools, not Managers

So to contribute to your post, some of those mfs don't even care about their own ideas, they just make ones that are assigned to them, it's their Job, and we call it a STRATEGIC PARTENERSHIP when both of you meet

 

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[envykyro]

With a product idea in mind, there's a problem - why would a manufacturer even create my product if by doing the same thing they could profit? There's no way I'd be able to hand-make it.

a simple skill money canty buy. SALES

And i say this because a true sales man and leader , is already busy building their $100M Empire. you cant hire someone like me for example who is brain washed by all of MJs Books , and yu ask me to start selling for you.

Its the same with the manufacures , first of all they dont know how to sell very well , the shipping times is too much hassle , and theres a MOQ , they have to make.

theres sooo many small departments and tiny issues that come up when you open a box full of products to sell... and if a manufacture started selling , they would become a entrepreneur instead

 

[NervesOfSteel]

With a product idea in mind, there's a problem - why would a manufacturer even create my product if by doing the same thing they could profit? There's no way I'd be able to hand-make it.

If your MOQ does not exceed the manufacturer's production capacity, you think way too high of your product in the first place!

Secondly, people have patents for their products, and those without patents, have legal contracts with their manufacturers that tie them under "white labeling"

Thirdly, many products are assembled by combining the parts made by a few or many other manufacturers!

a simple skill money canty buy. SALES

Don't underestimate the power of money!

you cant hire someone like me for example .....
.
.
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and if a manufacture started selling , they would become a entrepreneur instead

Manufacturers rise above the herd to own the invaluable land + machinery + provide full-time jobs + manage the whole supply chain starting from the purchase of raw materials to the delivery of packaged products at the doorstep of their clients ...

Smart manufacturers also manufacture their own developed products as a side hustle, while utilizing their plant's downtime to uptime. They do list their products on Amazon and Aliexpress, because they have resources and they "CAN" hire a guy/agency who can manage their Amazon/Aliexpress/alike pages and run some Social Media ads!

And I agree, Manufacturers are not entrepreneurs and they will never be. They have never read any of the MJ's books in the first place and they don't know your secret sauce of sales! Whenever you buy something from a manufacturer listed on Alibaba, its a sale for them. No? LOL

 

[The-J]

With a product idea in mind, there's a problem - why would a manufacturer even create my product if by doing the same thing they could profit? There's no way I'd be able to hand-make it.

Economies of scale: you sell 100/day at $75 margin, they sell 10000/day at $25 margin. They make way more than you

There's other reasons (comparative advantage, costs of vertical integration vs. horizontal integration vs. no integration, customer acquisition costs, etc)

 

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[envykyro]

If your MOQ does not exceed the manufacturer's production capacity, you think way too high of your product in the first place!

Secondly, people have patents for their products, and those without patents, have legal contracts with their manufacturers that tie them under "white labeling"

Thirdly, many products are assembled by combining the parts made by a few or many other manufacturers!



Don't underestimate the power of money!




Manufacturers rise above the herd to own the invaluable land + machinery + provide full-time jobs + manage the whole supply chain starting from the purchase of raw materials to the delivery of packaged products at the doorstep of their clients ...

Smart manufacturers also manufacture their own developed products as a side hustle, while utilizing their plant's downtime to uptime. They do list their products on Amazon and Aliexpress, because they have resources and they "CAN" hire a guy/agency who can manage their Amazon/Aliexpress/alike pages and run some Social Media ads!

And I agree, Manufacturers are not entrepreneurs and they will never be. They have never read any of the MJ's books in the first place and they don't know your secret sauce of sales! Whenever you buy something from a manufacturer listed on Alibaba, its a sale for them. No? LOL

Ahhh this is so true , also i am currently optimising my supply chain , every peice of item , will be bought by me and sent to my manufacture , where they use thier machines to simply assemble the clothing. i think this will make me safe in the future incase of a black swan event ,,

 

[NervesOfSteel]

Ahhh this is so true , also i am currently optimising my supply chain , every peice of item , will be bought by me and sent to my manufacture , where they use thier machines to simply assemble the clothing. i think this will make me safe in the future incase of a black swan event ,,

It will be a great investment in my opinion and will mostly keep the black swan away! With your materials, you have some control over the quality!

 

[amp0193]

why would a manufacturer even create my product if by doing the same thing they could profit?

I had a manufacturer once that had this same thought and competed head to head with me on Amazon.

After 6 months, they gave up and pulled their listings down.

Manufacturing and sales/distribution are 2 very different skills.

 

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[Stargazer]

For starters, they're not making one thing for one company.

Foxconn make iPhones so by default sell as many iPhones to Apple as Apple sell to consumers. In fact they sell more as Apple won't shift 100% of what they order.

But they also manufacture smartphones for Nokia, Sony, Xiomi and Google Pixel.

So who really sells the most smart phones?

Dan

 

[NervesOfSteel]

I had a manufacturer once that had this same thought and competed head to head with me on Amazon.

After 6 months, they gave up and pulled their listings down.

Manufacturing and sales/distribution are 2 very different skills.

I bet your manufacturer was from china!

 

[amp0193]

I bet your manufacturer was from china!

Lithuania actually

 

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