1. Economies of Scale
Contract manufacturers may be willing to offer lower prices if you commit to larger orders, as they can reduce their costs and increase their profits, while also providing you with a better price. This can be beneficial to both parties, allowing you to reduce costs while also helping the manufacturer increase profits.
For a company with multiple business units, if the same part is used across several products, these can be combined into one larger order.
2. Bid Between Multiple Contract Manufacturers
You can find lower pricing for the same part by bidding between multiple contract manufacturers. By sending out a request for quote (RFQ) to multiple contract manufacturers, you can compare their prices and choose the best deal. This process can be time consuming, but it is often worth the effort as you can save money by selecting the lowest cost option.