The first step of costing my product was determining the cost of the materials I used. The orange, beaded ribbon I bought was $1/yard, and I used 14 inches of it. That served as the base of the choker. I created the beaded fringe using thread and 180 glass micro beads, which came out to $5.40. The clasp and jump rings (which are sewn on and used to attach the necklace) are $0.26 total. Because I was just starting out, the entire process took about an hour, which is $10 worth of labor (at $10 per hour). The total production cost came out to $17.04, which is $20.45 assuming a 20% profit. Because I wanted to make a $4 off of each, I raised the estimated retail price to $24.50.
I discussed this price with my peers, who are my 'target customers,' so to speak. $24.50 per choker can seem pricey to a teenager who can easily access a simper version for $5 at Forever 21, but the unique beaded fringe and hand-made care held weight with my 'consumers,' who agreed that the price was probably reasonable. However, I think that younger customers would appreciate lower costs if possible.
The course discussed some of the ways that a production cost could be lowered in order to sell mass amounts of a product and appeal to my audience. For example, I could definitely benefit from finding a quicker way to hand-sew the beaded fringe that would make the process more efficient and lower the production cost. I also learned that I could use cheaper yet similar materials to do the same thing.
This project encouraged me to think in terms of business, which is always helpful when you're planning on making a living off of your creative passion.
Hope you found this interesting, more Parsons x Teen Vogue material to come soon!