There are many reasons to want to produce your own merchandise. It helps to build your brand name, it offers alternative revenue streams, higher margins are expected and it increases the distribution channels for your business. So, why is it so difficult to properly get merchandise made. In this article we will look at the children’s clothing and baby gift market to see what the hurdles are isnrgtbgtb3434.

First off, most people in the US would prefer the items be made in the USA if at all possible. The problem there is unless you have deep pockets the costs to have merchandise made here is typically twice that of overseas. Now the government makes it difficult to ship merchandise in from over seas, but we’ll address that later.
In the US there are more limited places to get things made. California as a state seems to have the most producers. However, you will often have to get the materials from one place, the dye at another and the sewing at yet another facility. If you have a nice streamlined system in place than many of these hurdles can be less problematic. In this instance, made in the USA is recommended.

Typically, money is an issue and the cost saving to produce goods overseas is the answer. In China you may have dozens of factories bidding on your projects and you will never have to deal with the different stages of creation as they are more self-contained. Your best bet is to have the item you want produced in finished form here and sent there to copy or only have minor adjustments.

The minimums in China are usually a few thousand per style. So while overseas production sounds like a good idea, here are the caveats you will need to think about. First of all, who is your supplier overseas and what trust do you have in them. We heard of a company called Chu Fottrell that was unable to source the good they claimed and kept the deposit. In addition to untrustworthy suppliers, the US charges taxes on imported goods in addition to rising freight costs overseas so while the merchandise may be made properly and shipped properly the cost of delivery may be enough in smaller quantities to offset the benefits of simply getting the product made here.

The best scenario for producing products overseas if you are looking for quantities in excess of 10,000 pieces, have a trusted supplier and already have the finished goods before sending them over for production. In these quantities the shipping costs get minimized and the benefits can be realized when you sell these good to the marketplace at a true wholesale cost. In addition, many previously wholesale companies in the US are offering direct to retail sales thus increasing their margins and making even more money per sale. Their current retailer will not like this approach as it severs their business, but it is an option many are taking to make more money.

Places like Alibaba and other online resources are a good start to get your feet wet producing your own sources goods. You can learn there and get a sense of the costs, but remember to ask for recommendations and take your time because there is a lot that goes into to from labels to compliance to fronting money and trusting the shipments will arrive on time.

For smaller quantities than 2000 it may just not make sense to go along this route. Unless you have an inelastic market and can heavily mark up the selling price of your goods you will probably be better off waiting until you can increase your assortment and either by color, size or style before entering this world. Many companies will claim to be able to produce smaller runs, but you will get poor service and price changes at the last minute leading to frustration with the entire process.

Whether you are in business for yourself or are part of a trade group getting products sourced in the US and overseas is no easy process. If you are sure it is for you than make sure your quantities are enough to offset the costs of shipping and import taxes and definitely keep an eye on quality control Get a finished sample when at all possible and good luck.

Author Bio: Founded in 2002, Gotobaby offers baby gifts for those looking for a little extra. From baby gifts to designer diaper bags like Petunia Pickle Bottom and gorgeous baby gift baskets our shoppers love the selection.

Category: Family Concerns
Keywords: new baby gifts, unique baby gifts, baby gift baskets