Tuesday, 31 May 2016

How Did You Arrive at This Price?

I’ve been asked on countless occasions how we ‘arrive’ at a price (for our items). A lot of people seem to be under the impression that the figures they see (on price tags) were simply conjured up in our minds. So, I figured it’s high time I clarify this ‘myth’ by putting it down in writing. Like any business in the market, there are 4 key elements that we need to factor in before pricing our products:

1. Material

The prices of clothes, for example, can vary greatly depending on the quality of the materials used. This applies to our items as well. Depending on the type of materials used, our items range from hundreds to tens of thousands of ringgit (RM).

2. Workmanship

The price of a haircut can vary depending on who cuts your hair. An junior hairdresser for instance, may charge as little as Rm15, but a senior hairdresser may ask for at least Rm25. Similarly, in the world of art, a piece of painting produced by an apprentice will most likely cost significantly lesser when compared to one produced by a popular and experienced artist.

3. Packaging

As our collection is purely from China, it goes without saying that our items had to be properly packaged before they were transported back to Malaysia. In order to do that, we first had to have all our items measured. Proper boxes were then made to hold these items. Only then, were they transported back to Malaysia.

4. Transportation

While many of our small items were hand-carried back from China, the bigger items had to be transported back by sea. As such, this cost had to be factored into our final price.

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