Can you find a factory that will make small quantities?
I have been prompted by a recent article and a client enquiry to write this blog. The article was featured in this week’s BRW special on China. It’s about an Australian shoe designer who found a factory that agreed to make very small quantities of shoes for them, one at a time to be precise – a rare situation indeed.
This prompted a customer to call me and suggest that given this shoe designer’s success; surely he too could find such a factory to make small quantities for him.
My answer – well no, this is not going to be the case, unless that factory stands to make a significant profit by producing only ‘one’ product…
Think about it like this, factory A makes one pair of shoes and a $100AUD profit margin, compared to factory B who makes one shoe box, with a 0.05 cent profit margin. Factory B has to make 2,000 pieces of the same product before its margin is same. Do you think Factory B will agree to make 1 piece for a customer?
Import feasibility is not just whether ‘you’ can afford it, but whether your ‘factory’ can afford it too?