Sourcing Your Products to Private Label Manufacturing - Understanding Manufacturing Costs: Navigating the Standard

Sourcing Your Products to Private Label Manufacturing - Understanding Manufacturing Costs: Navigating the Standard

Many individuals embarking on product manufacturing ventures are often curious about the expenses they may incur during the process. Stories of exorbitant costs abound, leading many to wonder what the industry norms are in terms of manufacturing expenses. In this article, we will delve into the typical costs associated with manufacturing various products, shedding light on the standard practices in the industry.

Molds and Prototypes

The initial step in product manufacturing often involves the creation of molds and prototypes. The cost of molds can vary significantly based on factors such as material type, complexity, and desired features. Many factories include the mold cost in their pricing while charging separately for employee wages and the delivery of a prototype to you. Additionally, you might need to hire a product designer to create mock-ups and provide design direction.

At our service, we offer a streamlined solution by imposing a flat fee for the mold design process, including mock-ups. An example of a substantial mold cost is $2500, which can occur when producing metal products without seams and falling below the Minimum Order Quantity (MOQ) threshold.


Once the mold and prototype are ready, you can move on to sampling. Factories usually charge for employee wages and sample delivery, while you remain responsible for compensating your product designer for mock-up creation and guidance.

After receiving the sample and ensuring it meets your expectations, you're poised to place an order, marking an exciting juncture in the manufacturing process.


Starting mass production necessitates a standard deposit, typically set at 30% of the total order value. This deposit serves as confirmation of your commitment to the project and enables the factory to purchase the necessary materials for production. Your order enters a queue to commence production, with production scheduling contingent on the deposit's receipt.

During this phase, you'll also need to cover your product facilitator fees, in addition to the 30% production fee. This initial payment is pivotal in getting your manufacturing process underway.

Final Payment and Quality Control

As production progresses, the factory provides an estimated completion date. At this juncture, the final payment, amounting to the remaining 70% of the total order value, becomes due. The factory will only release your order once this payment is received, marking a critical step in the manufacturing journey.

Upon release, your order undergoes rigorous Quality Control Inspection and professional packaging through our company's dedicated processes. This meticulous attention to detail ensures the highest quality standards are met.

Shipping and Delivery

Once your production successfully clears Quality Control Inspection and receives professional packaging, it's prepared for shipment. Typically, we arrange delivery to our trusted freight forwarder on Fridays or Saturdays, with ocean shipping scheduled for the following Wednesday. Barring any changes in delivery address, there should be no unexpected additional charges.

In previous articles, we've covered shipping and delivery timelines, offering valuable insights into ensuring a smooth and cost-effective logistical process. Understanding these standard manufacturing costs and processes will empower you as you navigate the exciting journey of bringing your product to life.

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