Product Line Strategy: Expand Your Offerings

 

Product Line Strategy: Expand Your Offerings

 

Lesson Info

Consider Production Coasts: Student Example

And because I like to do math and I like to make you guys you mass we're going to run a hot seat on this so who have a fairly flush that idea that wants to run some numbers? Tiffany, I wanna pick on you because I know that your cut you in any way so let's talk about your production costs so do you have an idea of a specific piece that you kind of think might be one of the ones that you're designing that we can kind of ballparks and numbers on? Sure okay let's do a necklace a perfect you know about it and describe it for us a little bit we have a visual on him so I'm going to d'oh it's so we'll just do like something similar this it's like a big prongs that stuff bottom um and then change going up possibly a little design element and where perfect so and you know what kind of your nose physically kind of stones you're thinking about having forced prices yet on those I have some suppliers that go through, I am sort of looking at more of some raw rare gemstone okay, so they're on the pric...

e here side I would go twenty two the one fifty rain is very so it kind of depends definitely decide in that last exercise to maybe start going with stone seasonally so long, chan collection and, like, maybe choosing four stones that really record represent this season. So which makes sense if you're playing your launches around this whole system, all that anyway very seasonal with your stones, so we're looking at depending on the stone. Twenty two one, fifty, yeah, what about your gold costs? So I would say twenty eight inches of gold chain solid gold chains probably going to run in the eighty five dollars range. Um, so now eighteen hundred dollars an ounce right there you're doing two inches for design element and sixteen gauge, so, like, like, fifty other component, right? Does that cow? And then the factor in your pong settings to you've got that one into s and then the prongs setting as well. So some we're right now working to fifty and three fifty cost for materials on then you're probably going to add another twenty five, because I'm gonna use this slightly later gauge of coal, so I would say we're somewhere justin material costs here, which we know because they're making high yeah, you're somewhere I would say between, like, two, seventy five and three, seventy five for the material cost of this necklace that sound right, yeah, and then what's your labor on that you know, I charge seventy five dollars an hour really burn that factors in sort of my studio costs and, you know, yeah, yes, I rent a studio and yeah, material things back isn't your over hundred? Thanks. So how long do you think it'll take you to make a necklace like that? You know, that could easily be done in an hour. Okay, so we're looking at somewhere I throw dice activity. So were in, like the three twenty five for hundred cost range just between materials. And we were kind of over harry number, right? Wait someone god, tio minimum, profitable price because they're you know you're gonna wholesale, right? We're marking up. We're now in the door for wholesale. You know, I should probably find a way. So here's and here's, where I get a little nervous designing this collection solid gold really does give me a nice price margin, and you can charge a higher price for it with less work. And so I like the concept of a solid gold collection, but this could also be done in gold, phil. And so maybe you know what I mean, right? And it just kind of depends on where you want to go with it because now we're getting into, like, a twelve hundred dollars to fifteen hundred dollars necklace and that's going to be a way different markets going to be a way different market, which is why I actually think you have to price it for wholesale because I think that's a price point that's going to be easier for you to pitch toe wholesale than it is to bring along your current audience and, you know, I could see like, the museum of crafted design carrying something like that's more along those lines is that, you know, our geological kind of pieces, so I think I already have some hotel accounts that probably right have a market for it, but it's that's a scary number that's way different than yes, where I'm at right? And I would say that so with that number so we're talking about kind of being like twelve to thirteen hundred dollars retail range is there going to be? Are they going to pieces in the collection that fall less than that or more than that? What's the kind of what you see is like the final retail range of that collection he was actually trying to keep it somewhere in the three hundred days under the weight of the water so I'm trying to think, how did I get that back down to that safe? So I think I don't necessarily think that I mean, I think you should have some pieces in there, but I think again, you don't want to have you don't need to have all of the pieces in there. Uh, I agree that that's what we set your longer a launch date, that this is probably not a collection that's going to sell to your existing customer, but part of I believe launching this collection for you is to sort of get you off the hands, stir well, I think yes, you could do it. I'm excited at its height in the army, so yes, you could do it in gold filled, but I don't think that that's going to get you where you want to go to another collection that kind of sits where you already see sitting, right? I think doing it in in gold, and then the other thing to keep in mind is that your retailers are probably going to want to two point five, not triple key if they hadn't, right? So really, I mean, and I think at like, a twelve hundred our price point that's about it. Kind of triple key from the cost that we just talked about that makes sense for those of you guys, you know, no triple key means three times wholesale standard retail market this to my retailers are using or between two point two and two point five, but when usually into more fine jewelry they tend to if they can but they night not all right, I think they like to have that option to be more of the two point five, two triple key area, so that really does put you in the twelve to thirteen hunt, you know, kind of twelve hundred dollars retail, yeah, range for that. And, you know, I feel I do feel sort of comfortable selling that out of my studio. Yes, because I'm in a gallery, we're looking at five thousand paintings now they're coming down, you know, jewelry isn't as scary, right? And he's one of a kind pieces with these one of a kind stones that are sort of rare stones, and I have to find that market that really is like, into that stone where it's, a nice people aren't as into it as I am, right? I really only have, like, the one retailer that I see that, and now all my other retailers are not really going to hotel this collection, so I'm gonna have to sort out whole new retailers, but it is absolutely easier to find new wholesale clients for that price point than to buy new retail clients for that price point, because you really want to make sure that you are profitable, a wholesale that retail is that, yes, the whole ceiling is an option for you in this collection, and I think you can, in your own studio employees like a two point five mark up so that maybe your retailers might market up triples that gets you twelve hundred, but you might be able to sell it for a thousand yeah, so you know, the wholesale price might be five hundred, which based on your cost sort saying for our costs for two, five hundred makes sense for the the whole surprise that pays for your labor, and then if you're selling it yourself, you're thousands gives you that much bigger profit margin and it's still it's your retailers two and a half or triple key if they need to cap that's really where we want to be I e todo reason that that price point can't work and we're actually that's going to be our next south of that. We're going to talk about finding market cops for that, yeah, so now we know what your minimal property prices go ahead nto

Class Description

"...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..."
-I Must Draw (CreativeLive Student)

You need a healthy range of product offerings to sustain a handmade business, but developing a coherent and profitable product line strategy isn’t always easy. Learn the smart way to grow your business in Product Line Strategy: Expand Your Offerings with Megan Auman.

The right blend of products will stabilize your revenue and excite your customers. In this class, you’ll learn how to:

  • Come up with new product ideas that sell 
  • Fit new products into your existing brand 
  • Narrow your focus and plot a course for success
  • Strategically launch your new products into the market
  • Megan will teach you a simple system for expanding and evolving your product line. She’ll help you evaluate the viability of new product ideas and she’ll show you how to develop processes for launching new products and designs.

Product Line Strategy: Expand Your Offerings with Megan Auman will help you develop the right mix of products so your customers are satisfied and your venue is stable.