Hi everyone! I’m sharing with you my new Parsons x Teen Vogue assignment called “Production Costs” part of the third course of “Fashion Production.”
First chart: I calculated my total production cost, the total cost including profit and estimated the retail price of my handcrafted Boho bracelet.
The second chart: shows if I wanted to sell a mass quantity of these bracelets. I would sell them at a wholesale price, which is half of our manufacturers suggested retail price, allowing for their profit and possible markdowns.
The total cost has decreased significantly earning me a greater profit by lowering my cost of materials and time.
Retail price: $10.00
Wholesale price: $3.30
This earns me at least $6.00 in comparison to my original calculations which earned me only $1.60.
What I learned from this assignment is that in order to make a decent profit, I need to buy my materials at a wholesale cost and produce more of my product in half the time. I asked my friends opinions and they absolutely agree they’d pay $10 for my bracelet. Overall, this was a insightful learning experience.