This is a fundamental question we encounter when discussing OEM partnerships. The pricing structure differs significantly between these two scenarios, and understanding this is crucial for strategic planning.

When you, as our client, provide all the necessary raw materials, our OEM pricing primarily reflects the cost of labor, specialized machinery operation, quality control processes, and our technical expertise in assembly and manufacturing. This model often results in a lower per-unit service fee because it removes the financial burden and logistical responsibility of material procurement, inventory holding, and initial quality vetting from our scope. You assume the risks and rewards associated with material cost fluctuations and availability.

Conversely, when we source all raw materials, our quoted price is comprehensive. It includes the total cost of materials (with our negotiated supplier rates), the aforementioned manufacturing services, and the added value of our supply chain management, quality assurance at the source, and guaranteed material continuity. This integrated approach typically carries a higher per-unit price but offers you predictability, convenience, and often leverages our bulk purchasing power.

The more cost-effective path depends on your specific capabilities. If you have a stable, cost-efficient supply chain for core materials, providing them can reduce overall expense. However, if material sourcing is complex or outside your expertise, our turnkey solution—though higher in direct price—may provide better long-term value through reliability, consistent quality, and saved internal resources. A transparent discussion about volumes, material specifications, and project timelines is the best way to determine the optimal financial and operational model for our partnership.