Interested in what people with more experience than I have to say on this. A quick backstory, with theoretical numbers for making it easy:
I designed a couple products and have sent them out to quote. This is my first dive in to outsourcing products in my attempt to grow my business, however I am familiar with the process as I'm an engineer that sends things out for quote all the time for my day job. Shop #1 is not local to me, while shop #2 is. I prefer to stay local if possible so I can meet people in person, and work through the prototyping phase together to cut down iterations which in turn keeps costs down.
For item #1:
I designed a couple products and have sent them out to quote. This is my first dive in to outsourcing products in my attempt to grow my business, however I am familiar with the process as I'm an engineer that sends things out for quote all the time for my day job. Shop #1 is not local to me, while shop #2 is. I prefer to stay local if possible so I can meet people in person, and work through the prototyping phase together to cut down iterations which in turn keeps costs down.
For item #1:
- Shop #1 quoted $40/ea to my door - price includes one time programming cost and tooling fee, so price will go down after initial order (not by much).
- Shop #2 quoted 50% higher, at $60/ea. Price does not include programming cost and tooling fee, so price will stay the same subsequent orders.
- Shop #1 does not have capabilities to manufacture.
- Shop #2 does have capabilities, and is working on quoting the project.