Oct 11, 2016
High volume low end VS. Low volume High end
When it comes to manufacturing and selling production there
are many variables that need to be taken into concieration before
beginning.
1- do you have an outlet that can move your product lines on a
consistant basis and if so is it YOU or a DISTRIBUTOR?
2- how many items and variations of these itmes do you want to
create?
3-Can you keep up with the volume?
3-How diverse are you in regards to these lines and the
creation of the styles?
THERE ARE TWO WAYS TO LOOK AT PRODUCTION..HIGH VOLUME LOW-END
VS. LOW VOLUME HIGH-END
LETS STARTS WITH THE IDEA OF
CREATING A PRODUCTION LINE AND THEN WE WILL MOVE INTO THE
DIFEERENCES OF THE TWO AREAS OF CONSIDERATION.
pro·duc·tion
prəˈdəkSH(ə)n/
noun
-
1.the action of making or manufacturing from components or raw materials.
synonyms: manufacture, making, construction, building, fabrication, assembly, creation
This manufacturing process can be a
fun and challenging as consistancy is the key to any succesful
production line. In past episodes I've discussed the process
of finding the base line calculations for your items.(*see figure
below) This is key to running a successful business as a
production artist. Without a strong, calcuated foundation you'll
end up chasing your tail as supplies dry up or run short while
making a larger order. The worse case scenrio would be if you were
half way or 3/4 of the way through the completion of an order and
you suddenly realzie you don't have enough material to get the
order fininshed by the deadine you set. So make sure you
break down and calculate this out before starting. This will
also give you a good idea on the estimated time of completion and I
say estimated because 95% of the time something will come up that
will delay your order. In this situation just make sure you leave
an open line of communication with your rep or retailer so you both
are on the same page.
As the glass industry grows so does innovation and the variety of
items that can be made an sold no matter what niche' you reside in.
Whether its manufacturing beads, pendants, ornaments, pipes, etc
you'll need to create a line that is both diverse and unified with
a theme or concept. This will help keep your brain focused on the
specifics and not constantly seeking other ways of being creative
throughout the manufacturing process. If you can set a schedule for
yourself to where either on certain days or a certain times of the
day you allow for a bit of free time to play with a new idea which
will help you stay fresh with ideas while maintaining a
good production schedule keeping you on track.
Before you begin puttng your line together youll need to sit
down and do some serious soul searching as these decisions will
determine how successful you will be in the
end.
This simple exercise can be used for anything you are going to
create, especially in the area of
production.
download pdf
How many
different style of what ever niche your in can you make in a timely
fashion?(write them down on the downloadable pdf
attached)
-
- for example
- 3"spoon
- shirlock
- hammer bubbler
- carb cap
- etc
Of items
written down which ones are repeatable in a
clean, consistent production
line? (note:think of yourself
as a catalog. Your items need to consistently match the
items in your catalog)
- for example
- 3"spoon yes
- shirlock yes
- hammer bubbler yes
- carb cap yes
- etc
Of said items how many different patterns can you use to diversify the line?- for example
- 3"spoon- wrap and rake, wig-wag, dots, stripes, color changer, inside-out
- shirlock- wrap and rake, wig-wag, dots, stripes, color changer, inside-out
- hammer bubbler- wrap and rake, wig-wag, dots, stripes, color changer, inside-out
- carb cap-wrap and rake, wig-wag, dots, stripes, color changer, inside-out
- etc
- MOST IMPORTANT- If a distributor ordered 100 of just a single item can your soul handle the monotony?(this needs to be asked for each item that you have listed)
Once you get all these areas established then
its time to fine tune your line and begin production. Befre you
begin the actual production you need to produce a sample of each
itme that you will be adding to your catalog and keep as a
reference. Once you have your references in hand then its time for
a test run. This means you'll need to create a minimum of 3-per
item in a row without stopping to better gauge the
estimated time of manufacturing. This will not only help keep you
on task but will also make it easier to price your work based on
the time and material associated with said piece. (the
downloadable pdf includes a chart to input your info) for example
say you want to make a simple 3" wrap and rake spoon Refering
back to your sample youll now what material is needed. heres
a breakdown of the process:
- prep tubing(pull points or attach blowpipes) this item requires 2" extra hvy 25.4 simax, 2" color and 9" 6mm clear(this is the formula for this item. repeat for each item)
- with points prepped its time to begin. (The prep has to be calculalted into the time of manufacturing. use a stop watch app on your phone and wrtie the times down in the pdf attached) estimated prep time 5-minutes
- now make the three spoons in a row without stopping. 25-min(plus 5-min for prep) 30-minutes total to make 3-3" wrap and rake spoons or 10-minutes each
In my opinion if you want to be
a successful artist then you will need to have a few lines of
mass produced items that will be your bread and butter while also
maintaining a line of lesser produced higher end items giving you a
diverse line for everyone to afford.
Now depending on how you sell your work will determine what you
actually make in regards to the items and price points. If you sell
drectly to retailers then your price point will be higher then if
you sold to a distributor and this will also determine the amount
of volume you will need to create. Most distributors have a large
customer base that they wll need to keep fullfilled with items they
are carrying including yours.This means you will need to create few
models but higher volume of them. If you sell directly to the
retailers then you wont need to create a high volume of a few
items. Instead you'll need to create a diverse line of work
giving the retailers a nice variety of styles and price points to
choose from. This concept in manufacturing also
goes for those who attend and sell at trade
shows.
As your own
distributor you are representing yourself as an artist which means
that it is crucial for you to find your voice through a diverse
product line that says "This is (artist name) glass" and
have it viewed as such in a good light. Just because
something is mass produced in high volume doesn't mean it needs to
be lesser quality. Even low end items should still be manufactured
to a high level of quality. A 3" wrap and rake spoon should
be given the same detail that a $1000.00 rig is given. The
difference between the two is the lower end item is made faster and
with less material where the higher end item might take 2-days to
create and $150.00 worth of material. This is where the concept of
low end vs high end comes in.
Locally made glass whether low end or high end
should live up to the standards that higher end glass is held to.
If you are a novice or hobbyist that is trying to create higher end
work while your lower end work still looks like garbage then you
need to take a step back and fine tune your skills before stepping
up and attempting to create something you
would consider a higher end line. Having a foundation of
fine tuned skills will help you move forward towards creating the
higher end lines more naturally and not feel so forced. There's a
ton of garbage in the glass art world that is being passed as high
quality work and only puts a light on the crap instead of shining
on the highly refined developed artists. So if your skills arent up
to par just yet stay with in your realm of skills while still
moving forward to the ultimate destination of being a well rounded,
fundamentally sound glass artist.
By starting off as a low
end production artist you'll give yourself opportune time to fine
tune your skills, create a diverse line of work all the while
supporting yourself as you continue to grow as an artist. If you're
at the point in your career where your skills are diverse then you
can create an larger diverse line of work ranging in many styles
and price points giving yourself a voice through your work. I
truly hope this helps you to understand and differentiate the
different sides of production. This is all bare bones info as Ill
be delving into the higher end lines of work in a future episode.
*Below is a basic calculation you can use when figuring
out cost of manufacturing your items.
How to calculate cost of
production
In this example I'm using reference from internet which
has material price based on length .....
This is a generic
example
example 3"-wrap and rake hand pipe
Material breakdown
:
2" section of simax 25.4 hvy wall
($8.00/60")
$0.13per inch or
$0.26(2"section)
1/2" section of color cobalt firsts
($5.25/18")
$0.15
9" section 4mm clear for raking
($0.52/60")
$0.09
Estimated total for cost
of Goods
3"wrap and take spoon
($0.26+$0.15+$0.09)=$0.50
Propane/oxygen/power is pennies on the dollar if you're
able to get liquid oxygen. If you are renting space you still need
to calculate your estimated per hour rate. If you pay
$1500.00/mo(power,rent,gas) break it down to per
day then estimate how many hours you work in a day and use that
number as a base calculation.
$1500.00/month (30-day
month) is approx $50.00/day (per
hour in a 10-hr day)
$5.00/hr
(gases,power,rent)
If you can make 10-$5.00 3" wrap
spoons per hour your estimated cost per hour is $10.00/hr
(power,rent,gas) $5.00+(material x's
10-hr) $5.00= $10.00/hr. to
manufacture 10-$5.00 spoons
GROSS-$50.00(10-$5.00 3" w/r)-$10.00(cost
to manufacture)=
NET- approx $40.00/hr.
In a 8 hr day do the
math
You can see just by getting a good base line down
for estimating your cost to manufacture
you have the ability to make anywhere
from
$30-60.00/hr gross profit
Gross= income
Net =income-cost to manufacture
=profit
Now take 15% of your gross and put that aside for TAXES
!!!!
If anyone has questions feel free to contact me
info@wyzguyradio.com
CALCULATING YOUR BASE LINE
If you pay $____A_____/mo=
(RENT+POWER+GASES) break it down per day, then
estimate how many hours you work in a day and use that number as a
base calculation.
$_____A______ /(30-day
month) is approx $___B____/day
(per hour in a 10-hr
day)= $____C_____/hr
(RENT+POWER+GASES)
If you can make 10-$5.00 wrap spoons per
hour,
your estimated cost per hour is
$_______/hr
$____________+(material x's 10 PER
hr.)= $_______/hr to
manufacturer 10-$5.00
spoons
Net-$50.00(10-$5.00 spoons manufactured)-$_______(cost to
manufacture)=
gross approx $43.00/hr.
Gross= income
Net =income-cost to manufacturer =profit
by establishing this base line costs
to manufacture you can then fine tune your lines, materials used as
well as what sells best and if need you can always adjust rices if
something is priced to high or to low.... you should be able
to profit a minimum of $20.00 per hour.