US Consumer Electronics Contract Manufacturing: How do I get started?
December 12, 2013 7:58 PM Subscribe
I am having issues with our overseas electronics contract manufacturer. I would like to collect proposals for domestic manufacturing, but I'm not sure where to start. At this stage, I am most concerned about assembled PCB costs. We have a critical semiconductor component that our overseas CM has sourced at well under 50% of what I can find that component at, and it's making other proposals difficult. This is for a product that will sell in the $25-$30 range, and we expect an initial order quantity of 20-50k units. I could just cold email manufacturers, but is there a better way?
Well, i once had a major successful product produced overseas for the cost of one component domestically. Actual numbers were that i made the item to sell at $35 with a 40% margin, and the micro i used cost $8. The Taiwanese supplier sold the whole assembly to us for $8. Same micro.
It is impossible to compete with this, and i am convinced the numbers quoted were not real, but they were willing to take 8 bux. Whatever. Gov subsidies, i guess.
I know a decent domestic CM in the southeast US that could do your work. (They bought the company i founded. ) Shoot me a memail and i'll connect you if you are east USA. If central or west, there are many out there that could help.
posted by FauxScot at 7:45 PM on December 13, 2013
It is impossible to compete with this, and i am convinced the numbers quoted were not real, but they were willing to take 8 bux. Whatever. Gov subsidies, i guess.
I know a decent domestic CM in the southeast US that could do your work. (They bought the company i founded. ) Shoot me a memail and i'll connect you if you are east USA. If central or west, there are many out there that could help.
posted by FauxScot at 7:45 PM on December 13, 2013
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If you know for sure your CM is doing you right - IME this is a matter of time and relationship - then working with them on your issues may pay greater dividends than spooling up a new CM.
posted by jet_silver at 8:49 PM on December 12, 2013