new product development

Re: [spiers] new product development


In a message dated 12/11/03 3:08:58 AM, johnkuo@hotmail.com writes:

<
I've found a few hand-made products in the US so I sent some samples

to my trading company in Hong Kong for price quotes.

***How come? Name the stores who told you they would buy this, let alone
said it was a good idea and does not exist... what value are you providing in
the marketplace? Let's get the premises solid...***


They replied by asking if I want to have the items hand-made to

produce *exact* replicas or with tooling for mass production. They

also asked what quantity and FOB HK target price I have in mind so

they can work with the factory on pricing.

***What does the NTDB tell you other importers pay for similar items?***

Let's say this hand-made

product in US retails for $30. What is a good *retail* price for it

with mass production (and maybe hand-made in China)?

***My products are always more expensive, so I would assume my price would be
higher... but again, my guess is you are assuming that there is money to be
made bringiing in cheaper something already being sold in USA. Maybe so, but
that business is strictly big business. We never have the economies of scale
to pull that off.***

Maybe we can work

backwards and figure out a reasonable FOB price?

***Well, see how confused this gets if the premises are off track? Normally
one works forward to make a price, not backwards.***

What should my profit

margin be?

***Normally whatever pays you about $250 per hour for your work, but check
with Robert Morse and Associates Guide to Key Business Ratios for the markups in
your industry. ***

What would the retail price be?

***that is your customers biz, you just give them your price.***

I think an equation would

look like this:


FOB = Retail - (Freight + Tax + my markup + retailer's markup)


Now I am completely lost because we have so much unknown. To get

started I would need to know the Retail first and work backwards.

Please help!>>

***My help would be this: forget about this, save yourself time and money.
And ask yourself, "If I could do any business I want, what would it be?" What
would you truly love to do? Then find a problem in that field, and work out a
solution.... you know..just what I lay out in the course.***

JOhn

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