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Post by patrickschwaner on Mar 20, 2014 14:23:40 GMT -6
There's nothing worse than dudes in hipster glasses selling hipster glasses to other hipsters.
But these guys do raise some valid points. People tend to overlook the little things while planning, only to have a rude awakening when those little things add up. All overhead and costs must be accounted for when making a financial plan.
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Post by jsherman on Mar 25, 2014 14:43:34 GMT -6
I totally agree with they're concepts. I am president over two organizations and can relate to underestimating the cost of goods when it comes to how much do we want to charge our members that will allow us to buy nice shirts, but also still be a reasonable price for college students.
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Post by arenee1370 on Mar 31, 2014 8:16:29 GMT -6
The title of the video speaks for itself. Just because you want to have a product that is inexpensive doesn't mean the cost of it will be as low as you want or think it will be. After figuring out the total cost of everything they realized in order to sell a quality product they needed to up their selling price due to the cost of goods.
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Post by darnette on Mar 31, 2014 21:58:02 GMT -6
The cost of goods are always much higher than projected. The costs of creating your perfect product should not be higher than the selling price. Every company wants to be the lowest cost leader but they must ensure that the profits are big enough to keep the company afloat.
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Post by godwesso on Apr 1, 2014 2:22:15 GMT -6
Understanding all costs in a business is very important, considering the origin of the costs is a very important step of understanding costs. When I run my business am always trying to cut costs at all levels so as to prepare myself for the unseen dangers of doing business. The video also hints at why cost of goods affects the longevity of a business, if costs keep getting higher then the business will not be able to sustain itself because the costs will eat at the profits/income made.
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Post by stephaniesmith on Apr 2, 2014 13:21:09 GMT -6
That was incredible insight about the cost of goods and their journey from what they thought they should charge to what the goods were worth. There are always so many costs that we as business owners don't think about on the front end. Then when the going gets deep, costs creep up to bite us on the backside. It is better to prepare for what could happen and price your product to follow suit with the journey ahead.
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Post by gkboone on Apr 3, 2014 9:32:59 GMT -6
In order for any business to succeed, they must offer a product of great quality at a fair price. Every consumer is willing to spend different amounts depending on the level of quality delivered. Personally, I would rather pay a little bit more if I am given higher quality in return. Pricing too low and delivering poor quality based on costs of manufacturing goods are both issues many businesses must address.
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Post by kati3 on Apr 4, 2014 12:51:34 GMT -6
I like that they wanted to make their product as affordable as possible. It shows their genuine concern for their customers and their want to give them great quality at a great price. Though they didnt achive the lowest cost but they still produced a great product at a reasonable price.
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Post by susiekaz on Apr 5, 2014 17:56:14 GMT -6
I thought this was a very informative video. I am sure there are a lot of start-ups who underestimate their cost of goods. It is important to correctly budget for your business because all departments are important. You don't want your marketing budget to suffer because another budget was underfunded.
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Post by jjohnson on Apr 9, 2014 7:39:56 GMT -6
Great point; any business should make sure that they are priced correctly. You never want to go up on your prices, but coming down is always nice to consumers. Going up makes it seem like you priced lower only to get the customers hooked. Once they demand your product enough and are hooked on it, you going up on the price seems somewhat dishonest. Always have your numbers checked by someone who has the experience and the knowledge that you are just beginning to receive.
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Post by asanchez on Apr 14, 2014 11:57:38 GMT -6
I think he is very right about underestimating the price of your goods. In every business it is important to budget more than you expect to cost because there are always unexpected costs that you don't realize are there until you get started. Besides that, you need money for the marketing of the product in order to keep it viable.
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Post by brittanycompton on Apr 14, 2014 19:13:36 GMT -6
I think a lot of first time business owners and entrepreneurs do not think of all the extra little things that are the cost of your goods. When I am at work there are a lot of supplies that I have to buy. Every time I go to the supply house i always underestimate the cost of what everything will come to. And it never fails it always about $50 more then what it i thought. Prices of my supplies have gone up which has made me go up a little bit on my prices. Being in school and learning about the start up costs in things have really put the respective of costs into reality. My mom is a business owner and every time there are things that unexpectedly happen and you have to fork out money. I do agree that spending a little bit more money on your goods gives you better quality at the end which will make the customer more happy and will be a returning customer.
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Post by jessweaver on Apr 15, 2014 15:19:30 GMT -6
I actually really enjoyed this video. Many people think that they can start a company and make their products cheaper than their competitors. The reality of it is that it is more important to have quality than quantity. You do not want your company to make cheap products that are going to constantly break or need to be replaced. Companies have to think about the cost of their products in a sense that they do want to make a profit, but you also cannot charge an outrageous amount because then you are going to lose your customers to your competitors.
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Post by Rosie on Apr 15, 2014 15:24:17 GMT -6
Financial expectations are never exactly right when businesses are beginning. I can see why even if entrepreneurs do all their research, and set "realistic" expectations, their numbers still come up short. Some aspects of the cost of goods can easily be forgotten, this is why it is very important to allow your business to project a higher cost of goods then you would originally set. If you can successful run the business within the amount given, it is likely that there will be money left over which can benefit other operations.
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Post by dnewson on Apr 20, 2014 12:37:28 GMT -6
This video would be very beneficial to someone who is starting a new business. Very good point made regarding not underestimating your cost of goods. You definitely must be prepared in case your actual cost becomes more than what you had projected your cost would be in your business planning.
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