Signature purse

Brands and companies often make products in multiple colors and fabrics to better address the different tastes of their clientele. However, this makes cost analysis take a lot longer as it must be done for each material. I recently did this for a “signature purse” I had to design for my ParsonsxTeenVogue class.

I, first, created a paper version of the bag out of poster board, which was necessary to see what it would look like in real life, determine how much fabric would be needed for it, and to have a pattern at the ready for the start of production.

Then, I found five fabrics that I liked, and determined how much it would cost to make the purse with each one. I ended up picking fabrics that were in a similar price range, so the differences between the costs weren’t that much, but they often can be. For example, Michael Kors makes the same style bag out of nylon that he does out of leather, which leads to dramatically different production costs between the two. As a result, the bags are sold for different prices.

Companies have a choice when these differences happen; they can do as Michael does and sell them at different prices or they can sell them at the same (higher) price. However, if the materials are so obviously of different qualities, the companies risk having less sales as customers may decide it’s not worth it to pay the higher price for the cheaper material.

I chose to keep my purses all at the same price because the differences in production costs were minimal. You can see their cost outlines below with the style number of each fabric used written above their respective charts.

Fabric 1302207:

.25 yards of fabric $3.25
.25 yards of pellon $0.75
Thread $2
(estimated) 1.5 hours @ $8.50/hr. $12.75
Total cost $18.75
20% profit $3.75
Total cost plus profit $22.50
Estimated retail price $47

Fabric 14241582:

.25 yards of fabric $3.25
.25 yards of pellon $0.75
Thread $2
(estimated) 1.5 hours @ $8.50/hr. $12.75
Total cost $18.75
20% profit $3.75
Total cost plus profit $22.50
Estimated retail price $47

Fabric 12950127:

.25 yards of fabric $1.28
.25 yards of pellon $0.75
Thread $2
(estimated) 1.5 hours @ $8.50/hr. $12.75
Total cost $16.78
20% profit $3.36
Total cost plus profit $20.14
Estimated retail price $47

Fabric 13853312:

.25 yards of fabric $2.50
.25 yards of pellon $0.75
Thread $2
(estimated) 1.5 hours @ $8.50/hr. $12.75
Total cost $18.00
20% profit $3.60
Total cost plus profit $21.60
Estimated retail price $47

Fabric 12515920:

.25 yards of fabric $3.75
.25 yards of pellon $0.75
Thread $2
(estimated) 1.5 hours @ $8.50/hr. $12.75
Total cost $19.25
20% profit $3.85
Total cost plus profit $23.10
Estimated retail price $47

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s