# Questions on Outsourcing, Distribution Channels, and the Cost to Market

- Show: [Predictable Designs Podcast](https://hardwarepodcasts.com/podcast/predictable-designs-podcast)
- Published: 2020-04-27
- Length: 33m
- Episode: 16
- Page: https://hardwarepodcasts.com/podcast/predictable-designs-podcast/2020-04-27-questions-on-outsourcing-distribution-channels-and-the-cost-to-market

## Summary

Host John Teel answers three questions from his Hardware Academy members regarding outsourcing, pricing, and startup costs. He advises founders to maintain control over marketing and sales to stay close to customers, while explaining how to price products for different distribution channels using 'keystoning' to ensure consistent retail prices. Finally, he debunks the myth that $1 million is required to launch, sharing how he used manufacturer partnerships and favorable payment terms to bring his product to market with only $75,000 of his own capital.

## Chapters

- [0:15](https://hardwarepodcasts.com/podcast/predictable-designs-podcast/2020-04-27-questions-on-outsourcing-distribution-channels-and-the-cost-to-market#t=15) Introduction and Outsourcing Development vs. Marketing

## Topics

- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)
- [Marketing & brand](https://hardwarepodcasts.com/topic/marketing-and-brand)
- [Manufacturing partners & offshoring](https://hardwarepodcasts.com/topic/manufacturing-partners)
- [Sourcing & supply chain](https://hardwarepodcasts.com/topic/sourcing-and-supply-chain)

## Most relevant to

early-stage companies

## Mentioned

- Hardware Academy (other)
- Alibaba.com (other)
- Dragon Innovation (company)
- Blockbuster Video (company)

## Related episodes from other shows

- [Advice Line with Mark Ramadan of Sir Kensington's](https://hardwarepodcasts.com/podcast/how-i-built-this/2024-06-27-advice-line-with-mark-ramadan-of-sir-kensingtons) (How I Built This)
- [130: Embarrassment, Then Relief](https://hardwarepodcasts.com/podcast/thoroughly-considered/2026-01-09-130-embarrassment-then-relief) (Thoroughly Considered)
- [002: Prototyping, Manufacturing & Selling a Men's Shirt Accessory](https://hardwarepodcasts.com/podcast/product-startup/2016-03-09-002-prototyping-manufacturing-selling-a-mens-shirt-accessory) (Product Startup)
- [013: From Kitchen to Amazon, Launching All-Natural Cake Mix for Dogs with Kelly Costello of Puppy Cake](https://hardwarepodcasts.com/podcast/product-startup/2016-07-26-013-from-kitchen-to-amazon-launching-all-natural-cake-mix-for-dogs-with-kelly-co) (Product Startup)
- [044: Turning customizable jackets into a multi-million dollar business, Elyse Daniels of Exodus Wear](https://hardwarepodcasts.com/podcast/product-startup/2017-03-14-044-turning-customizable-jackets-into-a-multi-million-dollar-business-elyse-dani) (Product Startup)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/predictable-designs-podcast/2020-04-27-questions-on-outsourcing-distribution-channels-and-the-cost-to-market. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to Predictable Designs Podcast.