The latest coursework I have had to complete is calculating the production cost for some earrings that I had to design using a previous inspiration explosion (I'd never heard of this before). Basically this is where you literally run around your house and pick up any item that you like the look of, being totally random, and then laying it all out in a pretty pile. Yesss, now I have an excuse for running round the house haha!!!!. Therefore I thought I would share with you what I have learnt.
In order to work out the production cost I had to define how much the materials I used cost. To create the earrings I used silver, metal wire that was easy to mould into shape, I also used earring hooks so you are able to wear them comfortably. I then had to work out the cost per hour of wages I would need to distribute to the staff. Obviously I had to then add all my costs up, so I was able to process the 20% profit I wanted to make. I then worked this out by completing some multiplications (ooohh does that word remind me of mental maths test urrghh). I then had to complete the same process but basing it on "manufacturer's suggested retail price" therefore this mean't I had to try and lower the cost of materials by finding the cheapest online. Therefore in order to do this I bought the earring hooks in bulk as this mean't the price was lower, and for the wire I searched for the cheapest one I could find online, still making sure it was of good quality. This was because I needed to reduce my costs to half price or less. This mean't I was still able to make profit.
The aspects that I learn't from this task, is what a "manufacturers suggested retail price" actually is and how you have to alter your costs to make sure you still make profit from selling your product. I also learn't how to research different ways of reducing the cost, whether that is buying in bulk or just opting for the cheapest one online.I have to say I am really enjoying this course and will definitely let you guys know how it's going at different stages.
Here are my earrings that I designed and created, but please bear in mind these are only a rough copy and a sort of mock up hehe! The design consists of a large circle that contains a square and within this is an eye, these are all made of wire. Are any of you guys participating in this programme?