Tuesday, 12 April 2016

Parsons Teen Vogue: Production Costs

Hey There! I have been doing a non credit certified online course on Fashion Industry Essentials at The New School Parsons which teemed up with the Teen Vogue. Whats exciting about this course is the challenges that are faced through the assignment section of each of the 5 exciting fashion courses. Today there is a new and interesting assignment that I have to complete where I was given the task of writing a blog about what I have learned in the Production Costs Section of "Understanding Fashion Production" course. I was given a task in the Your Idea segment of the course called "Thinking Like a Designer" to use our idea and make a unique accessory. Therefore the course challenged us to be creative and at the same time helped us to come up with unique accessory that we never thought would be possible. Now in the production costs section it teaches us about the main element of any business: The production Costs. The production cost is important to know about the cost and profit of any business.

So for the previous assignment I made an Edgy Necklace made of 4 different Charm Bracelets. I used the ribbon to attach each of the charm bracelets and paper clips to hold the charm bracelets in place.

For this assignment I am given the task to calculate my total production cost and profit and also to find out the estimated retail price, which can be done by asking a friend to tell me what would they pay for the item that I have made and therefore he or she should come up with estimated retail price.
So, here is the table to describe whats been used for my edgy necklace made of charm bracelets.
Necklace Made Of Charm Bracelets
Ribbon (1/2 metre)
1.5
Charm Bracelet #1
1.7
Charm Bracelet #2
1.57
Charm Bracelet #3
1.5
Charm Bracelet #4
1.99
Paper Clips
0.55
0.30 hours @ 14
4.2
Total Production Cost
13.01
20% profit
2.602
Total Cost Plus Profit
15.612
Estimated Retail Price
22

Above table shows the list of prices for the items that I used for making the necklace. I multiplied the amount of time it took me to finish making the necklace (3 hours) by the amount I expect to be paid per hour if I worked for retail store, which is my total wage expected.Therefore the total cost is all the materials cost plus the wage, $13.01.  I also assumed that I would be making 20% profit by selling the necklace. Therefore I multiplied the total production cost by 20% to find out my total profit, $2.602. My total cost plus profit is higher than my expected wage of $14. However the estimated retail price which I have found by asking a fashion forward friend is much higher, $22. Therefore my friend thinks this item can be sold at a much higher price of $22. Therefore every time I sell each of this necklace would give me a profit of $6.388!
Here is the picture of my edgy necklace made of charm bracelets! I would also love to know your estimated retail price, therefore the amount you would like to pay for this necklace.

What I learned from the Production Costs section of "Understanding Fashion Production" is most crucial part of any business whether it is small or a big one. Without learning about fashion business production it would not be easier to get knowledge of retail sector of fashion industry. Therefore this course is the basic lesson for understanding how fashion production process works.

If you guys are just as interested in fashion, fashion business and  production process of fashion just like me then go to Parsons Teen Vogue website and enroll now!

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