# S3 E8: Navigating and Managing Contract Manufacturers with Peter Russo

- Show: [The Builder Circle](https://hardwarepodcasts.com/podcast/the-builder-circle)
- Published: 2026-01-27
- Length: 1h 14m
- Page: https://hardwarepodcasts.com/podcast/the-builder-circle/2026-01-27-s3-e8-navigating-and-managing-contract-manufacturers-with-peter-russo
- Listen: https://rss.com/podcasts/thebuildercircle/2493947

## Summary

Peter Russo, a hardware mentor and entrepreneur with 15 licensed brands and $250M in retail sales, shares strategies for managing contract manufacturers (CMs). He emphasizes treating CMs as internal departments, securing IP and tooling ownership in contracts, and avoiding single-source dependencies. Russo also discusses cultural fit, exclusivity negotiations, and how startups can overcome being perceived as 'crappy customers' through storytelling and respect for the supplier's time.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/the-builder-circle/2026-01-27-s3-e8-navigating-and-managing-contract-manufacturers-with-peter-russo#t=0) Introduction and Guest Background
- [4:47](https://hardwarepodcasts.com/podcast/the-builder-circle/2026-01-27-s3-e8-navigating-and-managing-contract-manufacturers-with-peter-russo#t=287) Selecting Contract Manufacturers and Cultural Fit
- [11:46](https://hardwarepodcasts.com/podcast/the-builder-circle/2026-01-27-s3-e8-navigating-and-managing-contract-manufacturers-with-peter-russo#t=706) Protecting IP and Managing Tooling Ownership
- [20:19](https://hardwarepodcasts.com/podcast/the-builder-circle/2026-01-27-s3-e8-navigating-and-managing-contract-manufacturers-with-peter-russo#t=1219) Navigating Co-development and Exclusivity
- [32:31](https://hardwarepodcasts.com/podcast/the-builder-circle/2026-01-27-s3-e8-navigating-and-managing-contract-manufacturers-with-peter-russo#t=1951) Critical Contract Clauses and Exit Strategies
- [43:43](https://hardwarepodcasts.com/podcast/the-builder-circle/2026-01-27-s3-e8-navigating-and-managing-contract-manufacturers-with-peter-russo#t=2623) Hardware Horror Stories and Risk Management
- [51:25](https://hardwarepodcasts.com/podcast/the-builder-circle/2026-01-27-s3-e8-navigating-and-managing-contract-manufacturers-with-peter-russo#t=3085) Right-Sizing CMs and Early Engagement
- [1:06:00](https://hardwarepodcasts.com/podcast/the-builder-circle/2026-01-27-s3-e8-navigating-and-managing-contract-manufacturers-with-peter-russo#t=3960) Incentivizing Suppliers and Global Sourcing

## Topics

- [Manufacturing partners & offshoring](https://hardwarepodcasts.com/topic/manufacturing-partners)
- [Intellectual property](https://hardwarepodcasts.com/topic/intellectual-property)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Scaling production](https://hardwarepodcasts.com/topic/scaling-production)

## Most relevant to

early-stage companies

## Mentioned

- Scale for Climate Tech (company)
- KiCad (tool)

## Related episodes from other shows

- [#257 Co-Man Due Diligence 101 with Riot Energy and Kelley Drye & Warren LLP](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2026-07-14-257-co-man-due-diligence-101-with-riot-energy-and-kelley-drye-warren-llp) (The Startup CPG Podcast)
- [#134 How to Make and Scale Your Product with Jamie Valenti-Jordan, Catapult Commercialization Services Part 2](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2024-03-21-134-how-to-make-and-scale-your-product-with-jamie-valenti-jordan-catapult-commer) (The Startup CPG Podcast)
- [How to Select a Contract Manufacturer](https://hardwarepodcasts.com/podcast/global-medical-device-podcast/2022-02-02-how-to-select-a-contract-manufacturer) (Global Medical Device Podcast)
- [#023 - Developing consumer products with an all-in-one manufacturer in China that is just different, with Jacob Rothman of Platform88, China](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-04-26-023-developing-consumer-products-with-an-all-in-one-manufacturer-in-china-that-i) (The Hardware Entrepreneur)
- [Introducing: It's only a Prototype Podcast](https://hardwarepodcasts.com/podcast/its-only-a-prototype/2025-04-09-introducing-its-only-a-prototype-podcast) (It's Only a Prototype)

## Citing this page

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