Teaming with Contract Manufacturers
Contract Manufacturing is a highly competitive industry. Business is scarce and profit margins
can be razor thin!
To survive, you need to set yourself apart from the competition; you need to provide services
well beyond what other Contract Manufacturers (CMs) offer. A typical CM might advertise "design
services" but that typically consists of no more than schematic capture and PCB layout CAD services
Team with HED and offer TRUE DESIGN SERVICES. Design, as in hardware design at the chip level,
embedded firmware, and enclosures and cabling for a complete system solution.
But let's face it, as a Contract Manufacturer you might not get many requests for hardware and
software design, but by teaming with HED you'll be able to offer those services and win more
customers. It's only logical to think that if your company does the design that you will also
get the prototype and production contracts.
Here is how our teaming arrangements work...
- If you refer a design job that HED accepts, HED will pay you 5% of the design contract value. Not bad for just making a phone call or two.
- As the prototype is designed HED will give your company the PCB fabrication and assembly business, or whatever portion of the manufacturing that fits your company's capabilities.
- As the design moves into production your company will be offered the production contract.
At HED we realize that offering TRUE DESIGN SERVICES might not be something your company
normally does. It's a different way of thinking...and HED can help you in this area;
- An HED representative can be available for on-site consultation with you and your customers who potentially require our design services
- HED will provide you with brochures listing the design services we offer. During discussions with your customers where HED is not present you can mention that you now offer these services, and can provide a brochure.
- HED will list your company on our Affiliates web page, with a link to your web site if appropriate. This will increase your market exposure and hopefully your business.
Don't worry about the fact that HED may have already teamed with a CM near you or with
one that offers similar services. Each referral and teaming arrangement is treated
separately from the others. HED gives no preference to one company over another in
terms of reverse referrals or other business opportunities.
To discuss options and get started, please contact us.
