Shall I invest on molds cost?
My client wants to place me the orders of some scale shipping containers, I agree to pay molds myself to produce the products for them. It is the type of popular products have demand in the market.Now I have two choices:
1. I use the profit to invest the molds myself and ask the OEM molding tool factory to develop molds and do product OEM production for me. This factory only do molds and OEM production, they do not sell any products, so I do not need to worry that they copy my products. So I can dominate the market with this type of shipping container model with door open. So far, there is not many competitor has this type of model with door open. If I do that my US$10000 profit will all go into molds investment, molds cost around 11428USD.
2. My competitor(who is also my supplier, they also sell similar products to mine) willing to invest molds to produce the products for me, but they will produce shipping container model with door can not be open.
If I give this project to them, I will no need to invest on molds myself and I can get to keep the profit(about US$10000).
What would you suggest?