The benefits and costs of being a mass customizer

Disadvantages of Mass Customization:

• Higher production costs due to lack of automation and due to higher complexity (present in many startups though)
• Longer delivery times decrease the value for the customer
• Technology investment required for interaction/ configuration systems (thank you Internet, thank you social media)
• Seasonality effect if the product is popular as a gift
• Higher complexity for the customer (our customers tell us it’s fun though)

Advantages of Mass Customization:

• The product is better because it’s made according to individual specifications of each customer. More value is created.
• Less risk in product development due to co-creation and higher flexibility
• Less waste, which is better for the environment
• On-demand production leads to cashflow before product is even made
• Customer loyalty is higher
• Lower inventory cost (no post-production inventory)
• Data from consumer configurations
• As with every trend, this is the time to benefit from PR and the conversation that’s happening around Mass Customization and Co-Creation

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p.s. Huge thanks to Sandra Haberler, a student who wrote a paper on Mass Customization and was so kind to share it with me. Parts of what I write above builds on what she found out in focus groups and expert interviews.