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When to Choose a Custom Product vs. an Off-the-Shelf Solution: A Comprehensive Guide

Written on December 10th, 2024

When to Choose a Custom Product vs. an Off-the-Shelf Solution: A Comprehensive Guide

Choosing between custom and off-the-shelf (OTS) products can be a tough decision for businesses looking to solve a particular problem. Both options come with their own set of advantages and challenges and understanding when to opt for one over the other is key to making an informed choice. In this blog, we’ll explore the scenarios where each option shines, debunk some common fears around custom solutions, and help you decide the best approach for your needs.

 

When is it Better to Use a Custom Product?

  1. High EAU (Estimated Annual Usage) If your product is expected to have high usage numbers, a Marlin custom solution can be the right fit. When dealing with large quantities, tailoring the product to your specific needs means you only pay for the features that matter, without having to fund unnecessary functionality. A Marlin custom product allows you to fine-tune the design and capabilities to align perfectly with your operational requirements.

 

  1. Your Needs are Unique If your problem is highly specialized and no off-the-shelf solution exists that addresses it adequately, a custom product is likely the best route. Customization gives you the flexibility to craft a solution that fits your unique specifications rather than forcing you to compromise with a generic alternative.

 

  1. Integrating Multiple Off-the-Shelf Products Sometimes, you may need to combine various M-Flex OTS components into a cohesive system. While individual products may serve their purpose, a custom solution can provide the necessary integration to ensure they work seamlessly together. Rather than trying to fit a patchwork of off-the-shelf products into your system, a custom product can turn your collection of keypads, controllers, or CAN-bus into a unified, efficient machine.

 

  1. Control Over the Product A custom product gives you ownership and control. Unlike OTS solutions, which may be subject to vendor changes or discontinuation, a custom product remains yours. For example: the vendor can’t modify your controller without your input, giving you confidence that your solution won’t suddenly change or become obsolete.

When is it Better to Use an Off-the-Shelf Product?

  1. Low EAU If you have a low estimated annual usage (EAU), engineering a custom solution might not make financial sense. The upfront cost of custom design, development, and production can be hard to recoup, especially when the demand isn’t high enough to justify the investment.
  2. Commodity Needs If your problem is common and many other companies offer a solution for it, there’s no need to reinvent the wheel. Off-the-shelf M-Flex CAN-bus, keypads, and controllers are available for commodity needs, where you can simply buy what you need without incurring extra development costs.

Rapid Feasibility Even if you’re ultimately planning for a custom solution, starting with an off-the-shelf product can be beneficial for feasibility testing or creating a proof of concept. This approach allows you to get up and running quickly, validate your ideas, and adjust before investing in a more tailored solution.

 

Addressing the Fear of Custom Solutions

While Marlin custom products offer a wealth of benefits, many people hesitate to go down that route. Let’s explore some of the common concerns and why they might not be as big of a deal as they seem.

  1. Fear of Being Locked-In to a Vendor/Product

Many worry that using a custom solution will tie them to a single vendor, potentially limiting their options in the future. However, this concern applies to both custom and off-the-shelf products. For instance, if a control module used in an off-the-shelf product is discontinued or becomes unavailable, you could be in the same situation. When dealing with specialized applications, switching between hardware or software solutions can be challenging, regardless of whether the product is custom or off-the-shelf.

  1. Slow Development Time

It’s true that a custom product might take longer to develop than an off-the-shelf alternative, but that doesn’t mean it’s always the case. The reality is that 80% of the work in developing a product often comes in the first 20% of the time. Custom products offer the flexibility to refine and augment the remaining 20% of functionality, making them a better fit when an OTS product simply doesn’t meet your needs.

  1. Product Lead Time

Off-the-shelf products are readily available, and there’s no need for long lead times. Custom products, on the other hand, require more time to design, test, and manufacture. But when you’re looking for a long-term solution that is tailored to your needs, the wait can be worth it. Plus, having control over the design can make future tweaks and upgrades easier.

  1. Economies of Scale

Off-the-shelf products often benefit from economies of scale because of the high volume of production. This lowers costs for everyone involved. However, the real advantage of a custom product lies in its ability to be tailored precisely to your needs, so you pay only for the features you need and avoid unnecessary costs. Custom products can also allow businesses to stock components such as keypads, controllers, and CAN-buses for future projects, thus achieving efficiency gains.

The Case for a Perfect Fit

When validating a new product, one of the greatest advantages of custom solutions is the ability to make design adjustments on the fly. If an off-the-shelf solution meets all the spec sheets at the start but encounters an unexpected issue, you may find yourself stuck, unable to address the new challenge without starting from scratch. A custom product, on the other hand, offers more flexibility, allowing you to fine-tune the design and tackle any unforeseen hurdles more efficiently.

 

How Many EAUs Are Needed to Justify a Custom Solution?

This is a tricky question to answer, as the decision ultimately depends on the nature of the product and its intended use. If you’re dealing with a commodity product, where many solutions are already available on the market (such as a smartphone charger), a custom solution might never be worth it. However, if you need a solution that isn’t available off the shelf, the lower the volume, the less feasible a custom approach may be. In these cases, off-the-shelf products can often provide a cost-effective and timely solution, while custom solutions become more viable as EAU increases.

 

Conclusion

The decision between using a custom or off-the-shelf product hinges on several factors, including the uniqueness of your needs, the complexity of the solution, and your projected volume. While off-the-shelf products excel in low EAU scenarios and when rapid feasibility is necessary, custom products shine when your needs are specific and you require flexibility for long-term development. Understanding the benefits and challenges of each can help you make the right choice for your business. So, the next time you’re deciding between the two, think about your requirements, your timeline, and how you envision the solution evolving over time.