When you want to run a business, you can either manufacture your own products or purchase products to sell. I have tried both of these methods but later I stopped manufacturing products and focused on outsourcing products to sell. Based on my own experience, when you outsource products, you will have better profit margins compared to manufacturing your own products.
Manufacturing Products Vs. Sourcing Products
- Thread starter nomad
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I just think it depends on whether you are manufacturing on a small scale or a large scale, by this , it is clear you manufactured on a small scale and that won't yield much profits because of its demands and also buying machines and other equipments too especially when just starting ..
When it comes to doing things, I am generally insecure when it comes from other people and I am not in control of it. If it is possible, I prefer to produce my products myself so I know that I have done due diligence in the production process.
Setting up a production facility to manufacture products require a considerable amount of money. Outsourcing products requires less investment and is more flexible. If I have enough capital, I would like to manufacture my own products because I want control on the design and quality of my products.
I believe that manufacturing products is always going to give you a better opportunity to make more profits from the products that you're making.
Sometimes, manufacturing products is even more expensive than buying it. It might only be profitable if you can really mass produce the products in a large scale.
Indeed, there are many people who usually produce their own homemade items and they sell those items at great rate. You must need to consider the cost of production before you could start selling.
The only way manufacturing products is going to be more expensive is when you don't to know how to get the raw materials direct from the source where it is going to be cheaper for you to have low cost of production when you are done producing the items.
I used to buy inputs for my poultry farm but as I got deeper in the business and knowledge of the business, I started producing medication and vaccines for my birds. I found out it is more cost effective if you produce your inputs by yourself.
One just have to find out what works and how profitable what works for him is, if after making thorough research and observations and you find out that either of the options sit well with you, then you're free to opt in for whichever one that suits you.
