Importing products, relabeling them with your own brand, and selling them for a very large turnover can be a tempting prospect when you're first starting a business.
This will always cost far less than going through the process of research and development for your own product, and will give you the chance to get your goods to market far faster. Of course, though, a lot of companies still work extremely hard to bring their own goods into the real world, and this means that this approach has to have some degree of value. But how exactly does this work?
While some of the products you can import from China and other countries will be great quality, the best options for those looking to make a profit will usually be the value offerings. This is different when you’re making products for yourself, and you will have the chance to truly dictate the value of the items you make this way. Of course, though, you will need to make sure that they can stand up to the price point you’re giving them.
Most consumers are aware of the tricks used by companies to make their products cheaper, and many will quickly notice when they see the same product with two different logos on it. Making a product for yourselves can make you stand out from the crowd, giving you the chance to make a sleeker design, improve the features of the item, and even change the form factor entirely. Standing out can often be the secret to success for a product, even if it costs more or offers the user less.
Going through the process of designing, testing, and making a product will take a lot of investment. Much of this is going to be spent on things which your business will be able to keep forever, though. Machinery, expert talent, and even the things you learn from a process like this will help you to build a business which is not only successful, but will also be more sustainable than a business which is based on importing other goods.
While it doesn’t apply to every country out there, many governments reward businesses for working hard to bring new products and advancements to the market. R&D Tax Credits in the UK are a great example of this, giving you the chance to save money on your taxes as the result of your research. This can shave some of the money you have to spend, giving you more in profit and ensuring that you’re always at the front of the line for other government support which might be offered to help with this.
Selling products can be a tricky game to get into for businesses of all sizes. You will have a lot of choices to make, and one of the biggest will always be deciding where you get your items from. Making them yourself can be a great way to do business, though you’re the only one who can decide which route you’re going to take.