Production Costs

In a previous assignment for Teen Vogue I was required to create a fashion accessory out of items that were easily accessible from home and therefore not the usual medium for such designs. As you can see I went for a statement necklace which was made from magazine pages. Today I am having a closer look at the production costs for this item and estimating an appropriate retail and wholesale price.

Please note that I do live in Australia, hence why my hourly rate is so much higher than other students. $17.29 is actually the minimum wage here. This really drags up my total production cost but keep in mind that $30.00 for a necklace is a price that would not shock Australians as our cost of living is much higher than other countries. 

My next production costs grid is more detailed as it shows pricing if I was to produce a large quantity of my statement necklace and sell it at a wholesale price. Obviously if I am producing more than one item I am not going to use a whole magazine and an entire ball of string for each necklace. Therefore I have divided up the costs. For example I have sourced old magazines from the thrift store to use, these cost me $1 each. However I will only use 5 pages of this magazine per necklace. If there is 105 sheets that means I can produce a total of 21 necklaces from that singular magazine. Which allows me to divide the magazine price of $1.00 by 21.

After examining the true production costs on a deeper level it would be smart to reevaluate the estimated retail price to give the necklace a more competitive price on the market and in turn hopefully be more successful.