Exercise: Consider Production Costs
Lesson 19 from: Product Line Strategy: Expand Your OfferingsMegan Auman
Exercise: Consider Production Costs
Lesson 19 from: Product Line Strategy: Expand Your OfferingsMegan Auman
Lesson Info
19. Exercise: Consider Production Costs
Lessons
Why You Need to Create New Products on a Regular Basis
08:26 2What Holds You Back from Creating New Products?
09:38 3The 4 Step Product Expansion System
05:30 4Step 1: Find Your Next Direction
01:39 5Exercise: What's Working with Your Offerings
03:13 6What’s Working: Student Example
05:59 7Exercise: Identify the Gaps in Your Product Offering
09:02 8Identify the Gaps: Student Example
15:09Exercise: Look to Your Passions to Inspire Your New Product Offering
05:07 10Step 2: Declare Your Intention for Your New Product Line
07:04 11Declare Your Intention: Student Example
10:44 12Step 3: Develop Distinctive Design Ideas
01:35 13Exercise: Gather Outside Inspiration
07:54 14Exercise: Carry Over the Common Threads from Previous Designs
09:10 15Carry Over the Common Threads: Student Example
08:05 16Exercise: Design Your New Product Ideas Without Judgement
05:01 17Step 4: Evaluate Your Ideas for Market Success
02:25 18Exercise: Identify the Unknowns in Creating New Products
04:50 19Exercise: Consider Production Costs
03:00 20Consider Production Coasts: Student Example
07:40 21Exercise: Look for Market Support
05:05 22Moving Forward with Your New Product Line
07:49Lesson Info
Exercise: Consider Production Costs
Exercise is to consider production costs, so in order to have a successful product, you need to be able to produce it for less than someone is willing to pay for it. That's basic profitability math one o one so your production cost is really your material materials, plus your labor and either overhead into production cost and here's why? Because you're not making your product outside in the woods for free, you have a roof, you have electricity, you have tools, you have all of these things in your overhead and you need them to produce your product. So I like to think about that in our production costs, even if it's just in a ballpark way and then remember any time you're pricing, this is my pricing my starting point pricing formula of choice materials plus labor plus overhead plus profit is your wholesale price on our wholesale price times at least two is our retail price. We don't time new underpricing here. I've talked about it in a lot of other classes on guy have plenty of resources...
on designing an fda dot com about pricing as well, but it sort of reminds you guys about this as we do our evaluation, one of the other things you want to think about is what is the cost to produce a prototype versus the cost to put an idea into production so there are certain types of products that are just cheaper to make the more you do it as a reason that vote sarah's in that boat stationary anything that you're getting made a prototype is always going to cost you more so we want to make sure we're running our cost that you're looking at what the production cost is because that's going to set your final price and then just the costs go down the more that you produce so there are other things to you know if you buy more gold the cost goes down thinking about those kinds of things as well so I want you guys to identify your mpp your minimal minimum a profitable price that's a mouthful mpp is easier your minimum profitable price for your new product and so then the other things that you kind of want to think about is you're evaluating here is how much upfront cost is involved so some things require a lot of upfront costs sometimes you can mitigate that so with sarah we talked about you can she test out her photographs about getting any product produced this kind of minimal minimum viable product that you can take to market can you take preorders and then something is just know that there is going to be more of a material costs tiffany is just going to bite the bullet and pay for materials now the nice thing about at least the gold is that it's, always scrapple and re sellable. So it's. Very possible that if the collection sits, you recoup some of your cost. I don't think that's going to happen for you. But that is important to kind of keep in mind.
Class Materials
Bonus Materials with Purchase
Ratings and Reviews
I Must Draw
Megan is a brilliant instructor and each of her classes is packed with information to take your business forward. This class has practical steps to help you identify gaps in your product line. Through her own experience of developing product lines she helps you to understand how to stay consistent and cohesive. This is a great class, highly recommend.
Francesca Balagtas
This class was absolutely fantastic. Even though I've had my etsy shop for a while, it has always been something on the side for me while I was attending school full-time. Now that I have the time to really focus and commit to my business I can finally take the steps I need to build up my business and make some real revenue. Because of this class I now know those exact steps to push my shop with full speed ahead. Megan is fully engaging as well, which made the class easy and fun to follow along. Great class, Megan!
Danielle Celeste
Megan Auman is such an amazing artist, craftsman, strategist, and communicator. Everyone trying to make a living selling what they make needs to see this. I think this was my favorite class in the series. Getting such incredibly thoughtful, thought-provoking and concise information from an academically-trained fine artist and teacher was UH-MAZE MAZE!