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.