The Hidden Costs of Offshore Production: Unveiling the True Expenses
Are you thinking about offshore production for your business? While it may seem like an attractive option due to its affordability and cost efficiency, it’s important to be aware of the hidden costs that come with outsourcing production overseas. In this blog post, we will dive into the deep end and uncover these hidden costs, starting with the initial steps of tech packs and sample costs. We will also explore the frustrations and challenges that arise during the fitting and adjustments process. Additionally, we will discuss why some businesses opt for local production instead and highlight the significant cost difference. But that’s not all – there are even more hidden costs in offshore production that we will unveil. To gain a comprehensive understanding and make informed decisions, consider joining the upcoming masterclass on offshore versus onshore production costs. Ultimately, our goal is to provide you with a transparent view of the true costs involved in both modes of manufacturing so that you can choose the best option for your business.
Are you considering offshore production for your business? Yes, offshore manufacturing comes with certain perks like affordable labor and cost efficiency. However, are you aware of the numerous hidden costs bundled with outsourcing production overseas? Let’s break it down and dive into the deep end!
Most people think it starts with a tech pack. What’s a tech pack? Simply put, it’s a roadmap for your manufacturer, laying out all the necessary details to turn your idea into a real product. The problem is that you are dependent on the quality of the tech pack and the quality of the pattern maker at the other end who is interpreting the information.
Then comes the sampling process. Most factories now charge for creating samples, and unless you’re making thousands of pieces, getting that sample isn’t cheap. The sample has to be shipped, incurring further charges.
Once you receive the sample, you’re likely to need to do a fitting, possibly with a pattern maker or someone who can communicate the required changes back to the factory. If adjustments are needed, you will have to send the garment back to the factory, again at a significant shipping cost. Then, another sample must be made, incurring additional costs.
From our experience, this process can go on for multiple cycles, leading to a surprisingly high total cost.This drawn-out process isn’t just a burden on your wallet, it’s also incredibly frustrating. If you’re not an industry expert, the complexity and delays in making corrections can become exceedingly overwhelming.
Often, businesses who have experienced this cycle several times and are unhappy with the outcomes, turn to local manufacturers. In fact, some of our clients have shared stories of spending over $40,000 on offshore process development without even starting production.
Conversely, they find the cost of local production comparable when all is said and done, particularly when considering the overall process, from tech pack creation to receiving the finished product.
Are there more hidden costs in offshore production? Absolutely! In fact, there are at least four more hurdles to consider.
To gain a comprehensive understanding and make informed decisions, consider joining upcoming masterclasses and seminars on offshore versus onshore production costs. These sessions provide detailed comparisons, helping you see the true costs involved in both modes of manufacturing.
In summary, there are many considerations and costs that are often overlooked. Always aim for transparency, knowing what the process entails and what costs can be expected. Whether you choose local or offshore production – make sure it suits your business best.
True Cost of Offshore v Onshore Masterclass
Have you ever wondered what if it actually is cheaper to manufacture overseas, or are you better off with local production?
If you want to know the Facts about what it ACTUALLY costs to make your product then…..
you NEED to attend this Masterclass
- Are you unsure what to do first and how to decide on where to manufacture.
- Have you tried overseas manufacturers but the samples you got back are not right and you are wondering if you should persist.
- Have you spoken to a local manufacturer, but you feel it is too hard and you could not work out the overall cost.
- You have a business and have been producing offshore, but the costs are so unpredictable.
- Are you aware of the local desire for locally made products, but you are not sure where to start or if it is actually financially worth it.
- Are you interested in simply understanding if the rumours on costs and blowouts from offshore manufacturers are actually true.
I want you to know you have found the right place.
Over the last 30 years I have worked in the industry, I have experience in both local and offshore manufacturing and I want to show you the facts.
Sample Room has a dedicated team who understand where you are at and how to help you understand what is involved in creating products and launching your label.
Join the waitlist for the ‘True Cost of Offshore V Onshore Masterclass’ which is valued at $300, today!