Sunday, January 3, 2010

The China Replicator Machine

If you are a fan of the Star Trek universe you’ve undoubtedly seen episodes where a replicator was used. It made the Captains favorite tea, meals for the crew or other needed items. The theory was a replicator works by rearranging subatomic particles, which are abundant everywhere in the universe, to form molecules and arrange those molecules to form the desired object.

What if I told you we have the same technology available right now? Well, almost...

Take any object you want more of. A cell phone, a plastic container, electronic parts or a pair of designer jeans -- then send that object to the right manufacturing plant in China. And presto! They’ve created as many as you want, faster and less expensive than anywhere on the planet.

What types of products are made in China? Agriculture, apparel, crafts, auto parts & accessories, bags, cases & boxes, chemicals, consumer electronics, furniture, medicine, industrial equipment, lighting, office supplies, sporting goods, tools & hardware and toys. And these are just some of the categories.

Is this a good thing or bad thing? I'd guess it all depends on your perspective of course. If you are a manufacturing plant in the U.S.? This is quite likely your worst nightmare. If you are a consumer and your household budget is tight, this may be a dream come true.

Regardless of what you feel about it, Chinese manufacturing is not going to go away. Instead of fighting against it, use this resource to increase your bottom line. If you are a manufacturer needing parts or components to make your own unique product, get those parts from a source in China.

So what's the bad part of the cost savings, and thus more profits? You typically need to buy at least half of a shipping container of what you need for the manufacturer to consider your order. Normally 40% is required up front and the balance on delivery. The good news? My last client saved $3.00 per unit on 70,000 pieces ordered, saving $210,000. That's money they get to keep.

Then there is the finding the right contacts, import regulations and the many other pieces to the puzzle. But once you'll got it figured out you will be able to sell the same product at the same price, but at a lower cost.

So get going and start saving big money on a years worth of paper towels, toilet paper, electronic components, disposable gloves or what ever you need to save and make more money.


Unknown said...

That is a great analogy and I especially like the Star Trek connection. ; )

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