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?
posted by trevyn to Technology (2 answers total)
You have to know your overseas CM very well, because the idea you can get the critical semiconductor component for half off through them sounds a little suspicious on the face of it. Is the item quoted the real article or a "similar" "100% compatible" one?

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

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

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