Quirky Manufacturing Decisions
by nikkiWhen we started quirky we thought it would be fantastic if we were able to produce all of our products locally. But just like any startup business, plans change due to circumstances.
When the split-stick hit threshold a few weeks back, we immediately knew sourcing a memory-based product in the US would be a tough task. That, above & beyond meeting our promise to deliver the a quality product to customers within 8 weeks. Oy.
Luckily, we were able to find a manufacturer in china who was able to meet our demands on quality and timeframe, and began working with them immediately.
Our desire to transition manufacturing back to the US is a very strong one. It requires an incredible amount of speed and quality on behalf of the manufacturer, something we are willing to pay a reasonable premium for.
If you are a manufacturer anywhere in the world and love what we’re doing and think you can keep up… let us know.
Keith (our lead engineer) and I are boarding a plane to Hong Kong in a few hours and will provide a few video updates for you along the way. Splitstick has just finished tooling and is going into production/assembly this week (which we will be there to oversee) and Digidude has a production ready prototype which I will share with you later in the week.
Things are really coming along. We’d appreciate hearing your thoughts on our decision – Ben
11 Comments
By Joao
China is well known for its combat production prices and exportation rates success. Well…an average salary in a random manufacturer there is around 250$. Can you beat that?
Quality is an issue but with the proper research there are good manufacturing places.
If you think that you have a company there that assembles these qualities…then stick to it (got it? stick…)
The main thing at the end is to know if the taxes that you pay in importation + freight + the product itself, will be less that a “home” made product. Just my 2 cents.
Have a good trip!
By I M Disappointed
Ben Ben, Ben,
If you “immediately knew sourcing a memory-based product in the US would be a tough task,” then why choose one to develop?
This from just five months ago: “Quirky manufactures the product in the United States (There’s lots of idle capacity, Kaufman notes.)” — BusinessWeek.com, April 10, 2009
Well, guess what? There’s even MORE idle capacity today. And as long as those with products to produce think only of their bottom line and continue to send the work to China, our country’s manufacturing sector will never recover.
I understand that you want to make a big profit, but there are more important things in life than money. I have a good friend who has been unemployed for over a year, and whose manufacturing-related job is now being done overseas by some worker earning $7,000 per year. If I ever found myself in the unlikely position of needing or wanting a Split Stick or DigiDude, I would gladly pay twice what you’re charging if that meant a single manufacturing plant in the U.S. could reopen and give him and others a job.
I’m sure there are others like me who are tired of seeing their hard-earned money filling the coffers of some socialist dictatorship. Or filling the pockets of some young entrepreneur who has yet to pay off the debts incurred by one of his earlier brainchildren.
Based on what I read on BusinessWeek.com, I thought what you were doing with Quirky was going to be revolutionary, not just with your business model, but also with keeping the production of your gadgets in the U.S. Can you understand why I might feel a bit disillusioned?
By Ethan
Quirky,
First, I love the transparency so far. Keeping your community informed is a valuable thing – and is good business. Big up yourself!
Second, the tough decisions have to be made. At this point for quirky, I think the most essential thing is to get tangible products into the hands of consumers. As this process gets finetuned and streamlined, and pending the terms of domestic manufacturers, it would be great to bring the operations to the USA. Until then – you have to do what makes the most sense (while keeping your promise of speedy delivery and price).
Third, to I.M.Disappointed. I can understand your frustration – but I think you went a bit below the belt there. Poor form, mate. Had the prices been much higher to account for US manufacturing costs, it is highly unlikely that any of them would have made it out of the presale phase. I think the Quirky will get there, but I am sure you understand that these things take time.
By ben kaufman
Schrober (i.e. I’m disappointed),
Appreciate your feedback. As I mentioned US manufacturing remains a priority for us, and we are in the same boat as you.
We can assure you our profit on the split stick is non-existent.. but it is, as ethan suggests our first product getting into the hands of consumers which will bring quirky full circle.
Ben
By damon129
Bravo going to China for this product. That’s not sarcasm, either. There is a lot more to consider when “keeping American jobs here”, for example, good luck finding a memory stick manufacturer in the USA.
The whole world thinks having products made in China is all about price. It’s not. It’s about where can you get your products manufactured. There isn’t capacity in the USA for memory stick manufacturing. You can’t even get to the price conversation if the factory with the capacity doesn’t exist.
The point of the argument is being missed: a highly technical product was picked for the project. It can’t be made in the USA. Next time, pick something that can be easily made here.
By glide air
Besides, China, You could also take a look at Taiwan, which will offer better quality than China.
By Stacy
Since I’m not a nationalist, I don’t really care what country produces a product. What I do care about are issues like living wages, employee health, and environmental stewardship (in manufacture, transport, and disposal). I believe Quirky cares about these things, too, and it is my hope that (unlike some other CEOs of companies that shall remain nameless, cough, Whole Foods) Ben will eventually use Quirky’s bully pulpit to get more (not less) socially responsible as Quirky gains market influence. (Get it? Influence!) I hope, when that great day comes, Ben will also be a leader in “true” pricing, wherein all inherent costs are reflected in the purchase price, and not externalized to workers, municipalities, or later generations.
By r
@damon123 – You nailed it. If you’re telling people that you’re going to manufacture your products in the U.S.A., then you should pick products to develop that CAN be manufactured in the U.S.A.However, the decision to manufacture the DigiDude and PowerCurl overseas must be based on profit margin since neither of these products are “memory-based.” There are plenty of local plastics manufacturers. In fact, the few items that you can still find at Wal-Mart that are stamped “made in the U.S.A.” are plastic.Like Stacy, I’m no nationalist but I don’t believe that we should be enjoying the bounty of Quirky’s innovation at the expense of the welfare of others, both at home and abroad.
By ben kaufman
Thank you all for your thoughts.
I’m boarding my flight to Hong Kong now, and I can assure you that a large reason for Keith & I making this trip is to make sure that the conditions at the factory we chose were as described and second to none.
Keep this discussion going.
By stephen bozzone
Ben,
I just e-mailed the guys @ http://1prototype.com/
I worked with them for 13 years and they do great work. They are located in Ft. Lauderdale FL.
-SB
By stephen wuesthoff
hope your trip went well ben and keith. long flight. done it a few times. agree with damon 129 above as well. many industrial design students at university of cincinnati are opting for “constructed items” (meaning sewn, or glued or somehow constructed with purchased items) in their projects, knowing that this may give them the leg up to DIY (do it yourself). Certainly a pattern that Quirky could emulate. Say “Cordies” for instance….many of the sketched ideas are of sewn construction. I certainly understand the road that faces you now is the one to go down now. Human nature….watch for the moo shoo around the ol’ garbage cans while you’re there. cheers