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So, you’ve taken the bold step to become a registered manufacturer—kudos to you. The world is now your oyster as you are no longer limited to the standard, cost-driven raw materials available locally but instead can expand your repertoire to include low cost, high-quality inputs sourced on the international market.
Not only will this move translate to a multitude of cost saving opportunities and hence positively impact your bottom line, but exemption from the payment of import duty on equipment and materials used in your manufacturing processes will also give your end products a competitive advantage.
Dear we say, you are well on your way to dominating your market space. Below are three tips to get you going.
1. Register your certificate with local duty free suppliers
Ensure that you register your manufacturing status with all of the local suppliers that offer the option of purchasing your equipment, raw materials and packaging duty free. By so doing, in instances where you only require small quantities of specific inputs and importing such small quantities is not economically feasible, you would be able to purchase these items from local suppliers free of duty. Furthermore, in expeditious cases where time is against you and you do not have the lead time to get your raw materials from suppliers abroad, you can source the items locally while at the same time manage your costs.
In instances where you only require small quantities of specific inputs and importing such small quantities is not economically feasible, you would be able to purchase these products from local suppliers free of duty.
2. Research international suppliers of your raw materials
Carry out an extensive online search for international suppliers that offer unique, high quality and cost-effective raw materials and packaging. This will expose you to a greater diversity of inputs that will allow you to establish a higher quality and more unique finished product. The result is that you will be set apart from your competitors, who may be either limited to the inputs available on the local market or forced to place a higher price point on their end products as their inputs are impacted by duty.
Consider starting your search for suppliers in the Miami area since the supply chains from Miami to the Caribbean are shorter and more cost effective when compared to other regions—there is a 6-day ocean transit time from Miami to Barbados and air freight carriers offer a next day service. This means that your lead time will be shorter, and you can better manage your inventory of raw materials.
Consider starting your search for suppliers located in the Miami area since the supply chains from Miami to the Caribbean are shorter and more cost effective.
Additionally, due to its relative geographic proximity, the amount you pay to have your goods shipped from Miami would more than likely be less compared to freight costs from other regions farther away from the Caribbean.
Attending industry-specific trade shows can also give you access to a wide range of products and suppliers that you may not ordinarily have been exposed to in a small island market. Attending trade shows in Miami will also increase your likelihood of connecting with suppliers based there.
3. Market! Market! Market!
Your manufacturing status offers a multitude of benefits for your clients, so make sure that they know this by including it in your marketing initiatives. For instance, let your current and potential clients know that you stand head and shoulders above your competition because you are now in a better position to offer a greater diversity of unique, higher quality products at a cost-effective price. Furthermore, access to a vast array of low cost, high quality raw materials on the international market, means that you can specially tailor your products to meet the needs of your discerning clients. Added to that, you are also better equipped to maintain adequate inventory levels, which translates to a faster turnaround time for your projects.
Your manufacturing status offers a multitude of benefits for your clients so make sure that they know this by including it in your marketing initiatives.
Don’t be afraid to blow your own horn. Market! Market! Market! And don’t limit your marketing efforts to your home country. Focus on the entire CARICOM region because as a registered manufacturer your finished products are allowed into every CARICOM territory free of duty.
You took the step to become a registered manufacturer—that’s a win in our books. Now go forth, dominate and get more wins because, “Winning changes everything!”
Written by Dr. Nakita Haynes
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How to register as a manufacturer
Get in on the benefits—you may be more of a manufacturer than you think. View our step-by-step guide on how to register as a manufacturer in Barbados.