Manufacture Or Distribute? Which Is Best For You?

When it comes to building your first business, one of the first questions you may ask yourself is what you are going to do in terms of sourcing your product. Depending on the type of product you decide to sell, you can either manufacture the product yourself or look to source and distribute the product from someone else. To decide which one of these is right for you, we need to learn a little more about both processes.


Manufacturing involves bringing your product designs to a manufacturing company, or setting up a factory yourself and creating the product from parts. You can use a number of different methods in manufacturing and this will often include prototek manufacturing cnc prototyping, metal forming, and other electronic processes. If you have a large budget to start your business and a product idea which is unique to you, you will need to manufacture the product yourself. If you want to keep your product idea a complete secret until you launch it you will want to look into creating your own factory and buying the machines yourself for the process.

The benefits of manufacturing are that you will likely have a lower cost per unit due to the processes used to make it. You will have better control over the branding of your products, and the overall quality of your product. It ensures that your creative vision is truly seen and that you are able to create the best possible product for your audience.

There will always be risks associated with manufacturing because there is no guarantee that people will want to buy your product. This can mean a huge chunk of money wasted on creating a product which won’t sell.

Wholesale Distribution

If you want to start a business which is more closely related to a retailer, you are likely going to want to buy large bulk sums of product for your warehouse or store which you can then sell on at a higher price. This will be perfect for those who don’t have a unique vision or people who don’t have as much money to work with as they start a business. You can often buy a huge ton of product from a wholesaler or discount store for a low price and sell it on for much more. You will be able to look on sites like eBay, overstock, Costco and much more to stock up your store for your customers.

The benefits of distributing are that you can sell on already established items. It means that you don’t have the same risk involved with people liking your product or not trusting it. You will create that sense of trust with your customers because they are already familiar with your brands.

The main issue you will face here is having less control over your products. You can’t control the quality of the branding, you just have to trust the wholesaler.

Whatever method of product sourcing you choose for your company, make sure that it feels right for you and that you are happy with what you choose. It is one of the biggest decisions you can make for your company and should be one you take the time to make.

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Ive been blogging now for 5 years on various sites for the love of knowledge share. I decided to start my own blog a few years back to share everything from tech to business news. Follow me on twitter for more.