Production Costs
As part of an online fashion course run by Parsons and Teen Vogue (Fashion Industry Essentials) I had to make a piece of unconventional jewellery and calculate the production costs.
Part 1
Measuring Tape Choker | |
Green ribbon | €1.50 |
Measuring tape | €3.99 |
.5 hours @ € 9.25 per hour (minimum wage in Ireland) | €4.625 |
Total production cost
€1.50 + €3.99 + 4.625 = 10.115 |
€10.115 |
20% profit
10.115 /100 x 20 = 2.023 |
€2.023 |
Total cost + profit
2.023+ 10.115 = 12.138 |
€12.138
|
Estimated retail price | €15 |
Part 2
This table demonstrates the cost of production if the materials were bought in bulk. I sourced the materials online and calculated how much it would cost to make one using bulk materials.
Measuring Tape Choker | |
Green ribbon | €0.86 |
Measuring tape | €0.48 |
.5 hours @ € 9.25 per hour (minimum wage in Ireland) | €4.625 |
Total production cost
.86 + .48 + 4.625 = €5.965 |
€5.965 |
20% profit
€5.965/100 x 20 = €1.193 |
€1.193 |
Total cost + profit
€5.965 + €1.193 = €7.158 |
€7.16 |
Estimated retail price | €15 |
As seen above it is much cheaper to produce the Measuring Tape choker when materials are bought in bulk. This lowers the total production cost and increases overall profit.