What options a company has when choosing a tool

For the production of products, producers always need the right tool for the specific product. Each product has different requirements and each company also has different ideas.

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

1. Have completely own tools manufactured, which are the property of the company.
2. Have own tools made that are owned by the production company
3. Use already existing tools of the producer

Tool_Kaiserberg

Many different aspects play a role in choosing the right option – in addition to the requirements of the product, the financial aspect also plays a key role. After all, the three options have major financial differences.

Option 1: the company has its own tool made that belongs to the company itself

The most expensive option is where a company has special tools 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 duplicated for other companies. Even though this is more expensive than the other options, it still has some advantages. Probably the biggest advantage is protection from counterfeit products. This is because by owning the tool, the manufacturing company cannot produce the exact same product, but only imitations made with different tools. 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 because of the different tool. Especially for companies that have patented their product, this variant is the best solution. 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 tool made that belongs to the producer

Kaiserberg_Worker

In this option, the producer makes the tool especially for the company according to its wishes, but the tool remains in the possession of the production company and does not go to the company. This means that individual wishes can be implemented, but the producer can also use this tool for products from other companies or even manufacture his own products. Due to the multiple use of the tool on the part of the producer, this variant is cheaper than the first one. However, the product is not well protected from counterfeit products, which often also have the same quality. Here, the companies must decide for their respective product which variant makes more sense and how important the protection of this product is to them.

Option 3: the company uses already existing tooling.

Depending on the product a company wants to have made, it is a good idea to use tools that are already available. One of the biggest advantages of this choice is that it is not only significantly cheaper than the other options, but also that production can be started faster. This is because the producer does not have to wait for the tool to be ready, but can start producing the goods directly. However, this also means that there may already be exactly the same product on the market or that other companies can very easily replicate the product. For some types of products, 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.

So when choosing the right option, the type of product plays an important role, because there are products that are so successful because of their unique selling proposition 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 made. However, if it is a product type that already exists in a similar way, existing tools can also be used if this is desired. The company should always consider what is important for their product and what budget they have for it.

Do you have any further questions about the right choice of tool? Then feel free to contact us and our experts will also find the right option for your product.