Some of our customers start with us supplying one component for a prototype or a mature product. As they grow they may prefer to focus on a particular part of their business, such as electronics or just sales, and they then approach us manufacture under longer term contracts. And from there these contracts will often expand to include other components or whole sub-assemblies.
Under such arrangements we can continue to support our customers not only with our technical expertise but also via various business models. This models can vary almost as much as the products themselves, so we are open to many approaches as well as new ones. Some customers prefer a large range of control and will supply materials, tooling, packaging and logistics. Other customers prefer to have us build tooling that remains as their capital but remains stored at our location for the duration of the contract. Many customers wish to minimize their risk and investment by having us invest in and own tooling while building it into a subsequence piece-cost going forward. It is our flexibility in this arena that keeps good customers returning to us for multiple contracts and often retaining our services for literally decades.