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The right choice of tool

The right choice of tool Grafik

What options a company has when choosing a tool

To manufacture products, producers always need the right tool for the product in question. Every product has different requirements and every company has different ideas.

When it comes to choosing the right tools for Chinese manufacturers, companies have three different options:

 

  1. Have your own tools manufactured, which are the property of the company
  2. Have your own tools manufactured that belong to the production company
  3. Use the manufacturer's existing tools

Many different factors play a role in choosing the right option - in addition to the requirements for the product, financial considerations also play a key role. This is because the three options have major financial differences.

Option 1: the company has its own tools manufactured that belong to the company itself

The most expensive variant is where a company has a special tool made for its product and this tool then belongs to the company itself. This means that this tool may only be used for products from this company and that this tool may not be reproduced for other companies. Even if this is more expensive than the other options, it still has some advantages. Probably the biggest advantage is the protection against counterfeit products. By owning the tool, the manufacturing company cannot produce exactly the same product, but only imitations made with a different tool. This allows companies to secure a unique selling point for their product and the imitations often do not have the same quality as the original product due to the different tool. This option is the best solution, especially for companies that have patented their product. The reason for this is that a patent is usually only valid in the country in which it was applied for and not worldwide. By protecting the tools, the product is also better protected against replicas abroad.

Option 2: the company has its own tools manufactured that belong to the producer

With this option, the manufacturer produces the tool specifically for the company according to its wishes, but the tool remains the property of the production company and does not go to the company. This means that individual wishes can be implemented, but the manufacturer can also use this tool for products from other companies or even manufacture its own products. Due to the multiple use of the tool on the part of the manufacturer, this variant is cheaper than the first. However, the product is not well protected against counterfeit products, which are often of the same quality. Companies must decide which option makes more sense for their particular product and how important the protection of this product is to them.

Option 3: the company already uses existing tool

Depending on which product a company wants to have manufactured, it may be possible to use existing tools. One of the biggest advantages of this option is that it is not only significantly cheaper than the other options, but also that production can be started more quickly. This is because the producer does not have to wait for the tool to be completed, but can start producing the goods straight away. However, this also means that the exact same product may already exist on the market or that other companies can easily replicate the product. For some product types, however, the unique selling proposition is not the only reason why customers buy something. There are some products that are available from many different suppliers and yet all companies are successful with them, such as batteries, cables, pens or even clothes.

The type of product therefore plays an important role in choosing the right option, as there are products that are so successful due to their unique selling point and for other products this does not play such a central role. If it is a new product that does not yet exist in this form, new tools will probably have to be produced. However, if it is a product type that already exists in a similar form, existing tools can also be used if desired. The company should always weigh up what is important for their product and what budget they have available for it.

Do you have any further questions about the right choice of tool? Then please contact us and our experts will find the right variant for your product.

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