Product Manufacturing 101

Posted on 15 June 2007 by SonHouse

One of the key things I’ve learned in online marketing of any sort, is to spread your income over a wide range of areas so that you are never too dependent on any one source of income.  I’ve been focusing on my affiliate marketing revenue streams of late but I’ve also been working, for years, on yet another source of income that has proven to be a steady earner. 

The product, I wrote a post about it last year, is designed for kids and I sell it direct mainly but may take on some wholesale and retail accounts down the road.  I have been making the product by hand for the last 2 years and I recently invested in a machine that will help me scale production 20 fold.  I have been researching these machines for years and felt they were still a little too expensive for what I was doing.  I finally found someone selling one, online, and we made a deal that I couldn’t turn down.  So I drove to meet this guy half way between Austin and Dallas, in Waco, to complete the transaction in a McDonald’s parking lot.  So I’ve got this machine in the back of my truck, and I have no idea really how it works.  The guy who sold it to me didn’t know much about it either, he just imports them from China and sells them on the side.

I get this thing home and I’m excited to get it working.  I put together everything I need to start manufacturing the product, and turn the machine on and right away, there is a problem.  The thing jams and completely shuts down.  So,  I read through the manual the guy gave me, which amounts to about a 20 page printed word document that some guy from China translated to english, not much help at all, in fact it makes no sense whatsoever.  Anyway, I can’t get the thing working and after about 3 days of messing around with it, I decide to take it apart to figure out how it works.   Well, after a few hours, I finally start to make sense of how the machine works and figure out what the problem is.  After fixing it and putting the whole thing back together, I’m now ready to start cranking out the product. 

There is a process to manufacturing these products that has taken some time to figure out but I’m getting very close, in fact, I’m pretty much there.  I will start full scale manufacturing this week and begin to sell the new product within the next month or so.  Next thing I need to do is order new containers and finish the label design for the new look and feel of the product.  The reason I decided to manufacture this product instead of buying wholesale from someone is that I learned a long time ago to make really good money on what you sell you need to be able to mark up your product quite a bit.  That can be hard to do when you are paying a wholesaler and they are taking their cut.  By manufacturing the product myself, I cut the middle man out and I’m able to keep costs down and make as much as I can on the other end.  Also, by selling direct, I maximize my profits.

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