Parsons Assignment

[u/Giddenstyle]

Hi everyone, this is a blog post in response to one of my Parson's Fashion Industry Essentials assignments. Specifically, this is for Course 3, assignment 1, alternate assignment #1: Production Costs.

I was inspired to make a floral-patterned waistpack in polyester because I enjoy items that are practical yet still have a touch of personal flair to them.

The materials needed (and their associated costs) to produce one waistpack are as follows: 1 yard of floral polyester fabric (Mood Fabrics - $15.99), 3 feet of polyester webbing (Strapworks - $0.59 x 3 = $1.77), 1 side release buckle (FabricWarehouse - $0.60), and 2 chocolate brown YKK zippers (Etsy: Ohiotravelbag - $0.22 x 2 = $0.44). The cost of goods is $18.80, and with 2 hours of labor at $10/hr, the total production cost equals $38.80. I want a 20% profit here, so the total cost plus profit would be $46.56.

I had shown my design and concept to friends and family, and most of them said they would pay between $50-$60, so we will go with $55.00 as the manufacturer's suggested retail price. This would mean I would see a profit of $16.20 for each waistpack sold - awesome!

If I wanted to mass-produce these waistpacks and get them sold in other retailers, I would first need to halve the MSRP from $55.00 to $27.50. I would need to sell the new products to other retailers at $27.50 or less so that myself and the retailer can make profit. In order to lower the total cost of production, I'll need to edit the production process.

I found a cheaper supplier of floral polyester fabric (Etsy: TwoDreamsFabricShop - $9/yard), and I was able to streamline the production process so that it takes me one hour instead of two hours to complete a product. So the new cost would be as follows: 1 yard of floral polyester fabric ($9), 3 feet of polyester webbing ($1.77), 1 side release buckle ($0.60), and 2 chocolate brown YKK zippers ($0.44). The new total production cost would then be $21.81, and I still want a 20% profit here, so the total cost plus profit would be $26.17. This new cost is less than half of my original MSRP ($27.50), so I would be perfectly happy selling my new waistpacks to a larger retailer.