How Contract Manufacturers Can Thrive

Manufacturers typically fall into three categories: those with proprietary products sold under their brand names, those who contract manufacture for others, and those who do both. Those who do both often provide private labeling for customers of products very similar to their current proprietary offerings.

If you only offer what you’ve always sold to the same people you’ve always offered it to, you’ve got a short, narrow runway. Sadly, current conditions provide a perfect example of why considering your business the same as your product or current production / market mix is dangerous.

The first rule is do NOT think of your business as what you currently do and for whom you currently do it. If you only advertise selling to the construction market and I’m not in it, I will never consider you a potential source for anything I need.

Determine what value you provide that your current market treasures, and then which other markets equally treasure that value.

Your challenge is to think much more broadly than the parts you currently sell. Think about the value you provide, to your customers, your suppliers, your employees, your investors and to your community. They all want you to succeed.

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