Maklon Services are – Did you know that starting a business as a brand owner is currently quite easy and does not require large capital. This is because the existence of a tolling company can be an easy and trusted solution for novice business people.
There are various factors that sometimes prevent someone from starting a business, starting from being confused about the initial capital to build a factory or buying production equipment to paying wages for workers, even though you (maybe you) could be a shoe, bag, food, drink entrepreneur. and cosmetics that are currently popular in society.
However, you don’t need to worry and you don’t need to bother thinking about the things above. You can still start to realize your business smoothly. How to? Of course, by using the toll service.
Are you curious about tolling services? Come on, find out the explanation in this article!
Definition of Maklon Services
Have you ever heard of a company that offers tolling services, or do you not even know the meaning of tolling services?
The term maklon comes from the Dutch language, namely maakloon which means “production costs”. The word maakloon was then absorbed into Indonesian and changed to “maklon”. The term tolling is actually familiar in the business world, especially in the field of clothing and cosmetics. In other words, tolling is defined as product processing services carried out by other parties or tolling companies.
As an example, you use the services offered by a maklok company when you want to run a skincare business with your own brand or brand , but are constrained by capital. A tolling company does have a mission to produce products according to the ideas you want to make happen.
Legal Basis of Maklon Service Companies
Provisions related to tolling services include the Value Added Tax (VAT) Law (UU), Income Tax Law (PPh), Minister of Finance Regulation (PMK) Number 32/PMK.010/2019, and PMK Number 141/PMK. 03/2015.
Just like other service businesses, tolling is also subject to tax in its implementation, which means that the delivery is subject to VAT. In addition, the service provider for this product is also not exempt from the obligation to pay Income Tax Article 23.
1. Aspects of VAT
Referring to the new tax regulations, namely the Law on Harmonization of Tax Regulations, the applicable VAT rate is 11%. However, the government provides special treatment for tolling services whose products are used for export purposes.
The VAT facility provided by the government is 0%, provided that the service company must fulfill various conditions including:
- Details and raw or semi-finished materials are provided by the consignee or service user.
- Raw or semi-finished materials are processed to produce taxable goods (BKP).
- Ownership of BKP lies with the service user.
- Delivery of BKP produced by tolling service entrepreneurs is carried out outside the customs area (supervising agency).
- Specifically for recipients of export products or those subject to foreign tax.
2. Aspects of PPh
Payment for tolling services by the service user to the service provider will be deducted by PPh by 2% of the gross amount, excluding VAT. The gross amount referred to in this case is the total of all production goods with whatever name and form that are paid for, and provided for payment or when payment is due.
Furthermore, service provider companies also require contracts or agreements between service users and service company owners. With this paid contract, both parties will carry out their respective duties properly and optimally. Self-financing usually depends on the type of product to be produced, including taking into account the composition of the materials needed and the amount of product.
Important Terms Related to Maklon Factory
After knowing the basic definitions and concepts, the next thing you need to know about tolling is various important terms in the cooperation process.
1. Tolls vs. Contracts vs. Fully Fledged Manufacturing
When doing research and looking for the best tolling service providers, you might come across the terms toll manufacturing, contract manufacturing, and fully fledged manufacturing .
Toll manufacturing is a toll manufacturing company with product manufacturing facilities only, without providing product raw materials. When choosing this type of company, you must choose and provide the raw materials for the product, as well as determine the specifications and the number of products to be made later.
Furthermore, there is a manufacturing contract that provides a more complete service. Not only facilitating the production process, but also providing the necessary raw materials. That way, you don’t need to worry about the risk of quality and availability of raw materials at this company.
Finally, just as the name suggests, fully fledged manufacturing is a tolling service provider company with the most complete services, especially if you compare it to the two previous types. The services provided by this company include the provision of raw materials, the process of mass production of products, as well as responsibility for risks related to product legality and marketing. Fully fledged manufacturing is also very popular with the name one stop makloon.
2. Job (by) Maklon Order
The next important term related to tolling is makloon job order. The use of this term refers to the production work that the provider will carry out when he receives an order (order) from a service user.
3. CMT (Cut, Make, Trim)
This one term is closely related to the convection industry, which describes the activities of cutting (Cut), making (Make), and Trim. Because of this, you will be familiar with these three terms if you are going to toll clothes at garment companies.
4. Formulation and Sampling
If CMT is related to the convection industry, then you will easily find this next term in tolling companies in the food, medicine, and cosmetic industries.
Yep! Before actually mass-producing, generally the toll service providers will mix the product formula according to the agreement and wishes of the brand owner. After that, they created the sampling and discussed it directly with the brand owner.
If this sampling is in accordance with the wishes and expectations of the brand owner, they will immediately carry out the product manufacturing process.
5. ODM Vs. OEMs
Next, fill in the Original Design Manufacturer (ODM) and Original Equipment Manufacturer (OEM). These two terms appear very often and are widely mentioned in various promotional activities from tolling service providers.
ODM itself is a form of tolling process in which brand owners are free to determine the design and specifications of the products they sell. Including what materials will be used in the product, what are the benefits, what is the texture, color, and other specifications.
In contrast, OEM is a form of tolling process in which the brand owner cannot freely determine the product design and specifications. Here the tolling factory will produce finished products, but without a brand, so that the client can claim the product or register it officially at BPOM. This OEM system is also often equated with white label.
How the Maklon Factory Works
After understanding various important terms related to the tolling factory, the next thing you have to learn is the tolling system and how it works.
Although in practice each tolling company certainly has its own policies and SOPs. However, in general the way the tolling factory works is related to several things, namely the tolling company, the brand owner, and the products that are topped.
Maklon Factory Company/Provider
Is the party that provides product manufacturing, starting from the formulator team, design, legality administrators, material providers, to the mass production team.
However, not all companies have the same facilities or provide the same services. There are several tolling companies that only offer OEM or ODM systems only.
So, before choosing to work with these companies, it’s a good idea for you to find out how the services the company offers to their clients.
Is a party that will use the services of a tolling company, both individually and in certain corporate organizations (CV/PT). Generally, brand owners choose to use tolling services because they do not have sufficient resources to create their own products.
As you know, in the manufacture of cosmetic products, for example, there are many things that you must prepare and fulfill in the process. Such as selecting the right ingredients, having a reliable formulation team, legality, plus sophisticated factories and production machines.
This is difficult to fulfill when the brand owner is still a new entrepreneur. In addition, the costs that brand owners incur will be greater than producing their products through tolling services.
Well, the next aspect of the tolling factory system is related to products or results. Yep! this product will be adjusted by mutual agreement between the tolling factory provider and the brand owner. Both from dosage forms, product specifications, to the amount that the brand owner wants.
Each company certainly has its own procedures and policies, even between tolling companies with the same commodity. This is because each company certainly has a different and unique work culture.
However, the tolling process in general can be summarized into the following steps:
- Discussion between the brand owner and the tolling service provider to create a cooperation agreement. Includes the amount of costs that the brand owner will incur, product specifications, processing time, and many others.
- Making samples, after an agreement is formed, the service provider will make product samples and discuss them actively with the brand owner.
- Legality and certification management, after that if the product requires certain certification, the company can provide legality management or according to the client’s needs.
- Mass production, after all preparations have been successfully completed. Then the service provider will carry out the process of mass production of the product desired by the brand owner.
Basically the cost of tolling is very closely related to the type of product and specifications that the brand owner wants. In addition, each company also provides different costs and offers.
Therefore, in this section we will not discuss explicitly how much you have to pay for tolling costs. However, you can estimate by calculating the product unit price, for example starting from 30-50 thousand rupiah per product, then multiplying it by the number of products you want to make.
For those of you who are just getting into the cosmetics industry and are starting to become a brand owner, this number may be fairly large. Therefore, to outsmart the budget that you will spend later, you can choose a company with a small MOQ.
5 Types of Maklon Services You Need to Know
There are many types of tolling services offered in the business world. In general, tolling services are differentiated based on the goods or products to be produced.
According to various sources, there are 5 types of tolling services that have received more attention from business people. This is because these six products are in great demand by the market, are useful, and contribute well to the economy.
1. Cosmetic Maklon Services
You can use cosmetic tolling services when you want to create your own cosmetic brand but are confused about where to start. You only need to discuss the product specifications you want to produce, then the toll service provider will assemble the formula and carry out the mass production of the cosmetics you want.
Don’t worry, ownership of a cosmetic brand will still be yours. Because basically tolling service providers only help to realize a business that is hindered by you from creating for one reason or another.
2. Instant Food and Beverage Tolling Services
It cannot be denied that the food and beverage industry plays an important role for the national economy. Most of the much-loved foods and drinks are in instant form. Therefore, you can rely on instant food and beverage services to help produce the instant goods you want.
Not only that, this service provider can also be relied upon to take care of the packaging. You also need to pay attention to choosing instant food and beverage tolling services that already have a permit. So that you don’t have to bother taking care of permits to produce goods such as BPOM, product legality, or MUI halal certification.
3. Convection Tolling Services
Convection is a tolling service that produces products in the form of clothing. The production process usually uses the cut make trim (CMT) method. The process includes cutting or cutting raw materials according to the pattern of the clothes, making alias sewing process, and the last is trimming or the stage of tidying up the finished clothes.
In convection tolling services, clothing designs are usually made by the orderer, not the service provider. After the sample is approved, then the toll service owner executes it. Several companies or individuals who need convection services usually produce products such as garments, jackets, uniforms, and bed linen.
4. Herbal Maklon Services
Another product that is currently rampant in the market is made from herbs. More and more people are switching to using herbal products, so that more and more companies are providing this tolling service.
The flow that is passed is almost the same as cosmetic tolls or instant food and drinks. Namely doing product specifications first by the business owner, then continuing with the production process and finally you can market it privately.
Because this is an herbal product, of course these service providers are professionals who are experts in their respective fields. So, you don’t need to worry because the product that will be produced is definitely of quality in its class and affordable.
5. Shoe Tolling Services
This shoe topper is almost the same as convection, because both of them use the cut make trim (CMT) method. The shoe-making business is certainly not an easy thing that can be done by an individual. If you have this, then shoe tolling services are the solution.
Hand over the task of producing shoes to this tolling service. You also no longer need to bother thinking about the complexity of shoe production. But, you can still contribute by providing the design according to what you want. Apart from that, you can also get involved in choosing what kind of shoe material is suitable for your product.