Do You Really Want to Get
Into The Hobby Business?

Becoming a Producer (Manufacturer)

by Rudy Scott Nelson



The ability to establish a manufacturing company requires good choices in several areas. Most gamers constantly leave shows with an idea that there need to more availability of certain ranges or product concepts. Selecting the correct product is vital. You must be able to sell what you make. Advertising and marketing the product is critical to develop a demand. I will not offer suggestions in this section. The selection and the production of products will depend on several factors including; the interest of the owner, market need for the product, the skill of the design and production personnel and luck. The purpose of this article is to look at the aspects needed to keep the company afloat.

Many of the basic considerations are the same as for other option types. Some have already been covered above and some issues are covered in depth in following sections. The marketing aspect of the manufacturing company has changed. Many companies deal straight with retail stores and with customers. This produces some bad feelings with some ‘brick and mortar’ stores but the advantages outweigh those feelings. The profit level from such direct sales is higher and the company is able to reach a much wider target base than could be reached from a few stores.

For a new company, it will be a difficult decision to decide whether to deal with distributors or not. Distributors offer an instant marketing tool as their sales people will talk about your product. The issue is whether the new company has the resources to offer both the discounts and the quantity orders. A new company must also be able to design and use a packaging method which is desirable and useable by the target group. Poor packaging can cost a manufacturer money in both improper (for example: item amounts in a box) and proor display ability thus poor sales.

Besides selecting the proper location (the same as stated in the Distributor section), a company must ensure that the raw material and production methods are both readily available. Many companies will start up without the proper equipment, available sources for raw material, proper packaging material or a back up plan in case of changes. For example your plastic box source decides to discontinue making the product.

Do You Really Want to Get Into The Hobby Business?


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