Intro to Manufacturing: Budget, Brand, and Quantity

Rad Sourcing Video 2: Manufacturing Budget, Brand, and Quantity.

Welcome back to Rad Videos!
This video is an introduction to manufacturing. We will discuss your manufacturing budget, brand, and initial quantities. This is a basic overview, and we will be sure to go into more depth in future videos. After you decide on your product, the first step is deciding on domestic and/or international manufacturing. The answer to this question depends on three items; budget, brand, and quantity. 


Manufacturing in the United States is typically three to five times more expensive than manufacturing internationally because of minimum order quantities and technology available. In certain industries such as consumer electronics, the cost to manufacture domestically can be ten to twenty times the cost of manufacturing overseas. 


You need to ask yourself if it is important for your brand to be made in the United States. How much of your marketing budget will focus on the statement, Made in America? If it is not a sizable amount, then we recommend overseas manufacturing because your margins will improve. As a result, you can put that money into marketing your products and your brand starting out.


Because there are certain minimum quantities you need to meet to manufacture internationally, the factory will order the materials. Expect minimum order quantities for the apparel industry to be 300 units per stock keeping unit. Stock keeping unit means style and color. If you had two men’s polos in two colors each that would mean you have 4 stock keeping units, and your minimum order quantity would be roughy 1,200 units. Many startups begin manufacturing domestically until they can meet the minimum order quantity to manufacture abroad. As a result, they significantly reduce their costs.

To go back to our first introductory video please follow this link:

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Thank you for joining us on this quick dive into Manufacturing Budget, Brand, and Quantity.