Answer to Question #302762 in Marketing for Mohd Danish

Question

Product Development:luggage and travel equipment

Where will you develop the product (country, facility, etc.), and what costs will you be looking at during this stage?

Answer 1

I would develop the product in China preferably because of easy access to factors of production cheaply that will necessitate cheaper costs and thus making it for fair in pricing purposes. I would prefer it because of the art, design, or fashion schools where employees are sufficiently trained in these techniques. Administrators from Chinese companies or programs can usually grant you access to their internal job board, where you can create a request for prototyping help.

Costing is a business analysis process where you take all information gathered thus far and add up what your cost of goods sold (COGS) will be so you can determine a retail price and gross margin. I would include all of your raw materials, factory setup costs, manufacturing costs, and shipping costs. It is important to factor in shipping, import fees, and any duties you will need to pay in order to get your final product into the customer’s hands.