Grimhildes Closet

Gibson Girl Necklace: cost to manufacture

Jacquard ribbon: $0.22

+

Cameo: $0.66

+

Closers: $0.05

+

Time x $9hr (15 min): $2.25

=

Total manufacturing costs: $3.18

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Total manufacturing costs: $3.18

+

20% profit: $0.64

=

Total cost plus profit = $3.82

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Or

Total manufacturing costs: $3.18

+

40% profit: $1.28

=

Total cost plus profit $4.46

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I have been working on the Parsons Industry Essentials program and for one of the assignments I got to create this necklace. For this assignment I get to price out production costs 😊

As you can see above the total manufacturing costs are $2.25. If I want to make a 20% profit that would raise the price to $3.82. I personally feel that a profit margin of $0.64 is a bit slim and would like to raise it to $1.50 maybe higher. Depending on if I was planning to sell this whole sale or not would also make a difference in the price I set.

After talking to some friends and family members they expressed that they would be willing to pay between $5 and $10 for the necklace which I found encouraging as my costs were below that.

I thought this was a great exercise to get an idea about production. I got to price out supplies from different sources and consider price vs quality of these supplies. I also learned that my math skills are rusty lol. Even in the creative fields you need mat. Your math teacher was right! You do use it every day.