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What's a fair price for buyer AND seller?
210 sats \ 17 comments \ @Fabs 16 Dec AGORA
What would you be comfortable with paying for a Boxy Bag (storage bag) à 1L-, 1.44L-, 2L or 2.88L, with rough production costs of €20,00 - €25,00 per item - Only materials + prep for / and laser-cutting - ?
The fabric(s) and components used are Mil-Spec / Brand quality only, and are either manufactured in Germany (mostly), America, Finland or Sweden; There's no "Chinesium" knock-offs or "Made in China" to be found in my items, and all parts are laser-cut to precision by an extern company, for which surprisingly expensive templates have had to be set-up.
Design and assembly was / is all done by hand, including many prototypes and test-runs of different fabrics and components to get where I'm about to be. 🥲.
I don't have pics yet as I've just now placed orders to get my first batch through, but I'm very curious what people's ideas are on this. Therefore, please give me some written input as well!
€20.0016.7%
€25.000.0%
€29,9916.7%
€34,9933.3%
39,9916.7%
44,990.0%
49,9916.7%
Custom, type below.0.0%
6 votes \ poll ended
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11 sats \ 1 reply \ @random_ 16 Dec
2* (cost of materials) + $15 * hours of production
Guaranteed margin and you pay yourself for your time.
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0 sats \ 0 replies \ @Fabs OP 16 Dec
In example, thanks.
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158 sats \ 1 reply \ @anna 17 Dec
If you’ve already gone through the prototyping, etc., I recommend making a batch and honestly calculating the costs to make it. Pay yourself a reasonable wage and see what that comes to. Just speaking from my experience, I have a hard time keeping up with a craft if I don’t feel I am making what my time is worth. It’s more inviting to drop the price later rather than raise it.
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11 sats \ 0 replies \ @Fabs OP 17 Dec
Hm, true.
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0 sats \ 1 reply \ @nullcount 16 Dec
If you start with high price then lower as you achieve scale, its a commodity product.
Or...
If you price low and raise as you achieve scale, its a luxury product.
If you compete on price, you're always competing with someone who has much lower costs than you. As a small biz, you gotta compete on something other than price to remain sustainable (be unique, be quality, be luxury)
The best luxury products can consistently raise their prices above CPI. This artificial scarcity can actually grow demand as fiat-minded consumers believe your garbage is a good investment.
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0 sats \ 0 replies \ @Fabs OP 16 Dec
I don't want to be a "luxury" Brand, I simply want to make solid, practical items that are obtainable for the average Joe and which allow me to work on my own terms for a reasonable salary.
Moreover, I don't intend on making "garbage".
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0 sats \ 4 replies \ @grayruby 16 Dec
Have you considered ways to get your cost of production down? If your cost is 25 you should be selling it for 75 but that’s too pricey. If your cost was 15 you could sell for 45.
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40 sats \ 3 replies \ @Fabs OP 16 Dec
What do you think? I've managed to get a business account with a solid retailer, but even then it's €100 per fabric / component before the reduced price kicks in, for which I simply don't have the capital right now.
Therefore, I'll first need to price my items higher until I have accrued enough capital from sales such that I can reduce said prices based off the lower possible future material costs...
People should keep in mind that these items will probably outlive them, hence a premium isn't that much out of place anyways, but it has to be balanced.
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40 sats \ 0 replies \ @Fabs OP 16 Dec
Once things really kick off, I'd be able to buy roles of fabric right from certified Mills, but these go for > $800 - $1200 / 75 yard per colour, plus shipping, plus customs.
I can lower the production costs greatly with those amounts bulk orders, but one needs place and capital and interest to justify such investments up front.
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0 sats \ 1 reply \ @grayruby 16 Dec
I suggest pricing them a bit higher than you feel comfortable with. If you were thinking 35 then try 45. If you were thinking 45 then try 55. It will be easier to lower your price than to raise it. Ultimately you want to determine if there is a market for your bag and how much people think is a fair price for it. It's difficult to say without seeing the bag and just basing it off your cost of production. My suggestions are based on what you should be aiming for in terms of margin. You may not make any margin on the initial ones.
If you can sell some and prove market demand at the price point you are selling them at then you can borrow from a bank to buy a larger stock of materials to get a better price.
It's a grind but have fun with it.
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0 sats \ 0 replies \ @Fabs OP 16 Dec
Yeah, it's always a bit difficult simply going off text, but I'm confident they'll look fine.
I'll probably settle somewhere between €40,00 - €45,00 on current costs, but that's only a rough estimate as well as I don't have final pricing on what a batch of those will cost in terms of laser-cutting.
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0 sats \ 5 replies \ @AG 16 Dec
I guess you would not sell for 20-25, as it barely will cover the production cost. Your design and the fact that is a hand-made product drastically increase its value.
A good market research maybe help define your product price. Etsy offers various... Did you find any Boxy Bag alternatives in the EU market? What price they sell? What about in the US?
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0 sats \ 4 replies \ @Fabs OP 16 Dec
I've talked with tailors who make and sell their own items, and they all charge 30$ upwards per hour on top of production costs, which I'll most likely do as well, maybe little less steep.
People wildly underestimate how much work goes into making these, and how expensive it is. Maybe here's Temu et cetera to blame, as these make it look like it costs next-to-nothing, which isn't true.
I've also looked at Etsy as well as other "small" companies like Matbock and Otte gear, and they're all in the same price-bracket, typically higher in the case of Matbock.
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0 sats \ 3 replies \ @AG 16 Dec
Matbock's products also sell as handmade and for 60-80$. You could stay in the same price range.
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0 sats \ 2 replies \ @Fabs OP 16 Dec
Imported their admin pouches sell for >€200,00, which is wildly out of place in my opinion.
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0 sats \ 1 reply \ @AG 16 Dec
Hand-made value! A confirmation for you that people is willing to pay for handcraft items. The brand has good reputation within the nice it operates, maybe just a detail...
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0 sats \ 0 replies \ @Fabs OP 16 Dec
Yeah, I'm eyeing €40,00 - €45,00 / Boxy Bag with current production costs.
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