XiP

Liquid Sound Technologies - From Offshoring to Desktop Manufacturing

For many small businesses, ramping up production comes with some major challenges. Small batch orders carry a high per-part price tag. LST’s Droplet Sound System has historically been manufactured in brass. In order to track down competitive pricing, Vladimir Gutsman, Founder of LST, has tried several service providers – his most recent option was based in Taiwan. To achieve pricing that made sense for his business model he had to order in quantities of 10,000 pieces – a bulk order of machined brass parts that costs roughly $350,000. “A small run for R&D verification we could get in 4 to 8 weeks, but for full production the minimum is 6 months even stateside, and overseas with sea freight shipping, that’s 9 months to a year.” If LST modifies a design or launches an updated product, they must place the order early, while attempting to sell through the remaining inventory before the next shipment arrives nine months later. “It’s a huge pill to swallow for a startup.”

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