Learn to Make a Product

Expert Consulting for Product Entrepreneurs

How 3D Printing Can Benefit Your Business

This article originally appeared on our Forbes blog

3D printing, which started as a niche service, is now predicted to one day revolutionize the world of production. So it’s no surprise that one of the most common questions I get as a manufacturing consultant is: “Can I use 3D printing to make my product?” For many categories, from shoes to sweaters to eyewear, the answer is yes!

To understand how brands can incorporate this technology into their business models, I interviewed Christian Hartung and Hristiyana Vucheva, cofounders of the Berlin-based 3D printing house VOJD Studios. VOJD specializes in high-end jewelry, accessories, and hardware, with luxury label clients such as Prabal Gurung, Alexander McQueen, and Carolina Herrera.

According to Hartung and Vucheva, there are several clear benefits of choosing 3D printing over traditional manufacturing.

Save Time and Avoid Expensive StartUp Costs

The typical process of developing a custom product, such as a watch band or sole of a shoe, requires that molds be made in order to cast or shape the desired design. Molds often cost thousands of dollars (with most projects requiring multiple molds!), making it an expensive undertaking for any business. And, since they need to be created prior to any product or market testing, they are sunk costs. Even if the product turns out to be a dud, there’s no way to recoup what you’ve already spent.

3D printing eliminates this step, as materials are printed directly onto a surface to create a product. When VOJD teamed up with Alexander McQueen to make a limited-edition umbrella handle, what would have normally cost upwards of $10,000 in mold fees was reduced to several hundred dollars in setup fees.

Easily Customize Your Offerings

Another exciting aspect of 3D printing is that brands can more easily customize their offerings, as well as offer limited-edition collections. 3D is ideal for creating one-off pieces and small batch runs because of the reduced upfront costs and minimal reliance on physical labor, factors that drive up order volumes at a traditional factory.

Thanks to 3D printing, VOJD client AKRIS was able to produce a special collection of architectural rings (printed in silver and polyamide) for their runway shows. Another client, Ferrari Concept, 3D printed a short run of colorful eyewear for Paris Fashion Week last year. In a conventional setting, both of these projects would have required substantially longer development and production times!

Some companies are using 3D to opt for a “made to measure” approach, creating custom garments or products using a customer’s sizing information. As the technology behind this approach becomes more readily available for both brands and factories, it could dramatically change the way we shop. Instead of having to fit into pre-determined sizes that may or may not work for a particular body type, the buyer is able to dictate exactly how they want a garment to fit. The approach also benefits stores, who can reduce waste by carrying less inventory and more speedily eliminate styles that don’t sell.

Experiment With New Materials

Another benefit of 3D manufacturing is that the costs and potential for low order volumes make it ideal for testing new materials. When Spanish luxury brand Loewe wanted a unique bracelet for a menswear campaign, VOJD was able to experiment with a newly developed ceramic compound. The result was a bold yet lightweight interlocking chain, printed as a single piece which required no assembly.

Even if 3D printing is not the long-term strategy for a specific product or collection, it’s flexibility allows companies to test new concepts prior to investing in large production runs.

More freedom to experiment results in more innovation, less waste (as testing on a specific material can be done prior to mass production), and ultimately greater customer satisfaction. This makes 3D a win-win for both buyers and suppliers!

Paying An Overseas Supplier? Read This First

This article originally appeared on our Forbes blog

Paying an overseas supplier for the first time (or second, or third!) can be a nerve-wracking endeavor. Are they trustworthy? Will they deliver what they’ve promised? Are they even a real company?! Unfortunately – and I wish this weren’t true – some of the nervousness is warranted. After helping countless entrepreneurs untangle manufacturing problems with factories, I’ve seen my share of bad apples.

The good news however is that when things go wrong, it’s almost always the result of an easily avoidable mistake. A review of an overseas transactions that has gone awry usually uncovers one of the following errors.

Mistake #1: Not Requesting a Sample

Requiring that a supplier send you a sample of whatever you’re buying before paying them may seem like common sense, but it’s a step many people skip. They do so for one of two common reasons. The first is that suppliers may make a compelling argument for why samples are not needed. For example, “Don’t worry, we produce for many big companies!” or “Sending a sample will just be extra time and money. Our quality is great so there’s no need.” While this logic is flawed (big companies still require samples and the cost of securing them is nominal compared to risks of not doing so), new entrepreneurs who lack experience are more likely to be swayed.

The second reason is that people believe photos are a sufficient form of approval. A factory might email a picture of a material sample or finished product that looks great, but when the actual order arrives the specifications deviate in a way that was not apparent on a screen. Even worse is when the “sample” in the photo is completely different than the item ultimately shipped.

Mistake #2: Paying 100% upfront

It’s always best to structure supplier agreements using a deposit/balance schedule. As with many other industries, you pay a deposit to start a production order (typically between 30-60% of the total purchase order value) and then issue the balance payment prior to their release of the finished goods. There are a few instances where it is industry standard to require full payment up front, such as when a supplier is creating custom molds for a metal or plastic component of your product. While paying in advance for certain fees is unavoidable, deposits are the norm in most production scenarios.

When you pay a supplier in full at the start of a project, you lose your most compelling negotiating tool – a refusal to send more money until the company corrects unsatisfactory work. You also increase your financial exposure should they fail to deliver entirely. While it’s terrible to completely lose a 30% deposit payment if a supplier disappears, it’s even worse to lose it all!

Mistake #3: Sending Money to a Fake Account

While most supplier disputes are the result of a miscommunication or mismatched expectations, a small number are due to outright deceit. An increasingly common type of fraud occurs when rogue individuals imitate legitimate factories, convincing foreign buyers to send deposit payments for various goods and services that they have no intention of rendering.

To avoid this type of transaction, check that the ‘Pay To’ account information on the invoice is the same as the company name who you are supposedly doing business with. For example, if you are buying buttons from XYZ Button Co. but the payment instructions on the invoice ask you to send a wire transfer to QRZ Inc., consider it a red flag. The same is true if you are asked to pay large sums of money via paypal or issue a bank transfer to an individual’s personal account. In short, make sure the names on all invoices, bank accounts, and shipping documents match the name of the actual factory.

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Setting up trustworthy supplier partnerships involve more than just payment practices, but being aware of these classic mistakes is an important part of protecting your investment!

Three Ways To Lower Your Manufacturing Costs

This article originally appeared on our Forbes blog

When you factor in the cost of labor, raw materials, packaging, shipping and quality control, manufacturing a physical product is often more expensive than anticipated. Especially if you’re producing domestically or in small quantities, as many new makers do. While the quickest and easiest way to reduce per unit costs is usually to increase production volumes, not everyone has the budget to scale up. Here we discuss three ways to trim expenses without having to up your order quantities.

Tweak Your Design

It’s natural to get attached to your original product design (they’re called “idea babies” for a reason!), but the design decisions you make while initially developing your product are not necessarily the best in the long-term. For example, you may have chosen a material without fully understanding the cost implications, or opted for a customization during manufacturing that requires higher minimums than you can regularly afford to meet. By selecting different raw materials and components, changing the way your product is constructed, or even eliminating a few bells and whistles, you can reduce costs and increase profit margins.

The best sources of advice on making a product more cost-efficient are your supply partners. Reach out to your main assembly factory and ask them to explain the most labor-intensive aspects of your design. Find out if any of your material sources could be replaced by something less expensive without compromising the item’s integrity. Put their knowledge to use!

Take, for example, my client who has a line of pet clothing. After seeking advice from her factory, she reduced her costs by 5%. All she had to do was choose a less slippery fabric! It seemed her originally selected material was proving difficult to manage on the shop’s cutting machines, requiring more time and oversight, and a higher than average defect rate (meaning, perfectly good fabric was getting thrown away). Until she reached out to the factory, the designer was completely unaware of this issue. You may wonder why a factory partner wouldn’t offer up this useful information to begin with. Though some certainly will, others assume you’ve done your due diligence and research and want them to adhere to your exact specifications. In short, they won’t interfere with design instructions unless asked.

Remove Packaging

Are you mostly selling your products online? If so, removing excess packaging is a simple way to bring down overall costs. The purpose of packaging is to inform and motivate a sale, which, in an ecommerce setting, is accomplished by the marketing copy and great photography on your sales page. Anything the customer sees after receiving their order (such as packaging) is extra!

True, nice packaging adds to the overall perceived value of your brand; however, you can communicate value in other ways. For example, some makers remove all packaging on the product itself and focus on branding their exterior mailers and boxes with a catchy tagline and brand logo. This eliminates the labor cost of affixing packaging solutions to individual SKU’s (such as hang tags, cardboard sleeves etc); boxes and mailers have to be packed regardless, so adding a logo does not increase handling fees.

Remember, it’s okay to use different packaging for your ecommerce inventory versus items that will be physically displayed on store shelves. This may require a little extra logistical configuration, such as having your factory label separate boxes of inventory (one with retail packaging, one without), but in the long-run, it will reduce costs.

Negotiate with Suppliers

Asking your factory point blank to reduce their prices is usually effective only if you have information to back up the request. Before attempting any negotiation, make sure to secure a handful of reference quotes from similar suppliers. This will tell you where your current supplier falls within the overall ‘pricing landscape’ and what type of reduction (if any) it would be realistic to request.

For example, let’s say you’re an entrepreneur making painted wooden photo frames. You would price out your exact design (at the same order quantities you produce with your existing partner) with three other factories. If two of the quotes come back 10%- 15% lower than your existing factory’s pricing, you now have a specific range to shoot for with your current partner. It’s much more powerful to enter into negotiations with a realistic target, supported by competitive research, than it is to make a weak, open-ended request.

It’s okay to share the quote numbers you receive from other suppliers to strengthen your negotiation, but for privacy’s sake, don’t share vendor names and contact info.

Planning On Preselling Your Products? Read This First

This article originally appeared on our Forbes blog

Preselling is a great way to launch or grow a new business with physical products. Because customers pay for goods upfront, before a large batch of inventory has been made, entrepreneurs can escape the pressure of funding their own manufacturing expenses. Revenue generated by presales can be used to cover the cost of materials, production, and more.

Though the presale model may sound ideal, it does come with some risks. While seasoned brands have had time to test and refine their manufacturing process, new makers are still operating on a learning curve. Beginner’s mistakes can lead to production delays, defects and quality problems, and, in a worst-case scenario, a total loss loss of inventory. The latter can be disastrous, particularly if a brand lacks the resources to re-make the product or issue refunds.

Thankfully, there are a few things you can do to minimize the likelihood of problems when preselling.

1) Complete the Sampling Process With Your Manufacturer

In my work with clients, I’m surprised at how many people don’t get fully finished samples before starting to presell. This trend is due, in part, to the ease with which designs can be presented before they are actually made. The ability to retouch imperfect samples or create life-like digital renderings means that a concept can be partially flushed out or exist solely on paper, but still make for compelling website photography!

Going through a complete sampling process with your manufacturer of choice will ensure that your design doesn’t have weak spots and that your supplier can make the product at the level of quality you desire, in a reasonable amount of time. Getting semi-finished samples–or worse–waiting to sample until production starts (after you’ve sold inventory) leaves you vulnerable to unwanted surprises, such as poorly performing materials, assembly defects, and slower than anticipated turnarounds.

2) Perform Product Testing

Whether you are sending your finished product to a testing agency or performing your own set of tests, making sure your design functions as its supposed to is an integral part of the making process. Certified agencies are great for tests such as seam strength, material toxicity, choking hazards, and other metrics that require special equipment and precise measurements. Informal tests, such as simply using a product sample for an extended period of time, or repeatedly washing a garment according to the care instructions you’ve set, are great ways to understand if design changes are needed before you produce.

With either method of testing, it’s crucial that you’re 100% confident in the way your product will perform before sinking other people’s money into making it.

3) Build in a Buffer

The age-old advice to build a cushion into any budget or timeline is especially true when manufacturing a product. Add even more so if you are a beginner! Things often take longer and cost more than anticipated, which is fine (albeit frustrating) if you are answering only to yourself. But promising finished products to customers and then either running out of money to make them, or falling significantly behind schedule, will cause extreme stress and strain.

In order to preserve your sanity, reputation, and wallet, build at least a 20% buffer into any time and cost projections. This includes the total investment you anticipate will be required to manufacture your pre sale inventory, as well as the delivery date you set for buyers.

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