Hey y'all! I began this product development journey 10 years ago, designing and manufacturing bedding for dorm rooms, and now here we are! Helping clients produce everything from soft accessories, textiles, and beauty to home goods and tableware -- all custom branded and/or private label. Although each product is different, the design and manufacturing processes have so many shared attributes.


Why private label? We want to help you build your brand, not someone else's. By bypassing purchasing product at wholesale, you allow yourself room to sell at both wholesale and direct to the consumer. Increased flexibility and dramatically improved margins. Yeah, buddy!

Let's dig into today's topic: Custom Tableware Collection Costs & Minimums


Topics Reviewed:

  1. Custom Tableware

  2. Everyday China

  3. Fine Bone China / Porcelain China

  4. Cost to produce and MOQ for custom Everyday China

  5. Cost to produce and MOQ for custom Bone China / Porcelain China


Porcelain & Ceramic Tableware


A few key questions that will help guide you in determining what, how, and where to manufacture:

  1. What is most important to you: Cost or quality?

  2. What is your target Retail Price Point?

If Cost, for a traditional everyday style dinner plate (like HERE) with a target retail price of ~$54 you can expect pricing to be in the range of $8 - $12, MOQs (minimum order quantities) to be in the range of 500+ per design (many times you can negotiate multiple designs), and production to take place in very large scale mass-production venues.


If Quality, for Formal Porcelain China / Bone China style dinner plate (like HERE) with a target retail price of ~$115 you can expect pricing to be in the range of $22 - $28, MOQs (minimum order quantities) to be in the range of 200 per design, and production to take place in very intimate environments with a small team of artisans applying art by hand, or hand-painting each piece.


I always love to conclude with a little business case, because at the end of the day, as a business owner the bottom line is your backbone for buy-in, credibility and longevity. With a business case, we are quickly answering the question, "does this program make sense?"


If your top priority is cost, here is your formula:



(MSRP * MOQ) - [(Production Cost * MOQ) + Shipping + Art/Design] = Gross Margin


($54 * 500) - [($12 * 500) + $1000 + $750] = $19,250


Production Cost: $12/pc

MOQ: 500/design (typically you can negotiate 2+ designs)

MSRP: $54/pc


Miscellaneous other costs

Shipping: I recommend budgeting ~$1000

Art/Design: I recommend budgeting ~$750 per design

Sampling: More often than not, you can negotiate to have your sample cost credited to your final invoice as long as you go to production, so I'm leaving this out of the equation. Feel free to ping me if you want to discuss further!



So, you turned a $7,750 investment, into $27,000 with just one order! With the exception of a few promotional expenses you'll probably have, that's $27,000 in revenue and $19,250 to your bottom line! This is ~$71% margin. Not bad!



If your top priority is quality, here is your formula:



(MSRP * MOQ) - [(Production Cost * MOQ) + Shipping + Art/Design] = Gross Margin


($115 * 200) - [($28 * 200) + $650 + $750] = $16,000


Production Cost: $28/pc

MOQ: 200/design

MSRP: $115/pc


Miscellaneous other costs

Shipping: I recommend budgeting ~$650

Art/Design: I recommend budgeting ~$750 per design

Sampling: More often than not, you can negotiate to have your sample cost credited to your final invoice as long as you go to production, so I'm leaving this out of the equation. Feel free to ping me if you want to discuss further!



So, you turned a $7,000 investment, into $23,000 with just one design! With the exception of a few promotional expenses you'll probably have, that's $23,000 in revenue and $16,000 to your bottom line! This is ~$70% margin. Not bad!



*Please note, these production costs are on the high side to allow for very conservative projections. Once you get into the process, I think you'll be pleasantly surprised by lower production costs.



What did you love? What did I miss? Hit me up with questions, this lights my fire!!!


Mallory

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Did you know Private Label product has surged since 2015? In fact, according to a recent Gartner review industry Behemoth Amazon has made a huge bet... "To meet growing demand, Amazon has aggressively expanded its private label assortment across major categories, posing a threat to legacy brands and retailers as the e-commerce giant attempts to capture a greater share of consumer spending."


14% of total accessories unit sales are Private Label.


#PrivateLabel #ProductDevelopment #PrivateLabelProductDevelopment #Merchandising #RetailStrategy #MerchandisingStrategy #PrivateLabelManufacturer #PrivateLabelManufacturers #PrivateLabelManufacturing #ProductDevelopmentConsultant

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In my day-to-day I am constantly finding little golden nuggets of wisdom! Whether designing a website, scarf, or working on clearing products from customs... I feel a sense of duty in sharing the resources I discover. Slowly but surely I'm going to start blogging again.


I discovered www.LindsayHumes.com while creating a Rinnovo Studio Capabilities Piece to be used as a pitch deck for prospective clients. Lindsay designs websites for Bloggers, but she has an incredible blog of resources on her own site.


Check out her blog as a resource for branding, but specifically for branding elements such as font and colors.


Enjoy!

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