Business'

Jellybean1108

Hi!
Am new to MSE so sorry if this is in the wrong place!

Just wondering what kinda business' people do, and how they save money whilst doing it (and hopefully passing it to their customers!)
We'd love to be more thrifty in business but it's so hard.
The only thing we have at the mo is recycled packaging, which of course we pass the cost on.

We create handmade personalised gifts so hard to scrimp on materials as we want quality!

Just looking for opinions really xxx

quinechinoise

I'm not sure how helpful this will be but...

I run a knitting and crochet blog. Whatever I craft for the blog, ends up being gifted to someone (after being photographed) to save on buying so many presents. lol

I also do webdev/web design - which is all on computer and online.

I don't have packaging costs - everything is emailed. Like I said: probably not terribly helpful! Sorry!! I basically do as much online as possible and everything else gets reused or recycled.

Mistral001

When you mean recycled, do you mean old boxes and wrapping that has been previously used for packaging something else and would otherwise be thrown out, or wrapping and boxes made from rcycled material?

paddyrg

If you're already scrimped to the bone, then how about looking at ways to drive either a higher price, fatter margin or more business?

Is the price what the market will bear? Would a 10% uplift on price make you uncompetitive? Have you tried?

If each product is unique and custom (known in manufacturing circles as 'jobbing'), not many economies of scale there. However, if making 2 of the same item at the same time takes not much longer, how about offering the customer the opportunity for a backup/second one for x% discount?

Could you make small batch where only the personalised element is custom, the main body is standard stock? Without any hint of what it is you make I'm guessing a lot here, but if say knitted bears then they can be over stitched with personalisation, or maybe ceramics printed and fired from a stock of ready-turned bodies.

Or draw in more business with promotions - contract previous customers with a 3 for 2 offer based on the original design or 10% discount on new designs if they order now/for Christmas? Are you putting a sales incentive into each delivery?

Without knowing your business there's not much more to suggest, but I hope some of that was relevant at least!

Jellybean1108

I create personalised handmade wooden items
The packaging is stuff my other half has gotten from work that would be otherwise thrown away and packaging i've recieved items in (clean obviously!)
We do use "new" tissue paper made from recycled items.
I see your points though

paddyrg

Without knowing what the items are (names burnt onto wooden spoons vs wooden trains with wooden letters glued on, etc.), I can't offer a lot more manufacturing tips for economising!

But in general, look at what parts of the process you can batch up, or reworking your lines/designs so they can be batched and customised. Doing the same process a dozen times in a row is generally more efficient than stopping and starting - all the tools are out and set up, you're on a roll, and you can do it in between the fancy/creative bits.

Let's take custom Welsh lovespoons for instance, ones with names with an attractive extra design burnt into the handle in top of the latticework/knotwork. You can cut the blanks, carve the bowls, shape the tops, do the bulk of the knotwork, leave a panel in the middle for burning, do the sanding, do the staining even, then add the scrollwork and names to order. If you have a dozen blanks standing by at any time, you can deliver orders faster and it takes less overall work giving you higher margins - whilst still giving a high quality yet very individual result.

Mistral001

Jellybean1108 wrote: »

I create personalised handmade wooden items
The packaging is stuff my other half has gotten from work that would be otherwise thrown away and packaging i've recieved items in (clean obviously!)
We do use "new" tissue paper made from recycled items.
I see your points though

Customers will not thank you for saving them a few pence in if the item they have bought from you arrives in a packaging that has obviously been used for something else. Many customers will feel as if you are not treating them as valued customers. All customers want to feel as if they are special to you.

Also, you are a business and in business time costs money. Finding old packaging and preparing it to take the items will take time. A lot more time I would suggest than using new packaging. Are you in fact saving any money if that time is costed?

Why not use new crisp packaging that has been made from recycled materal. That will save you time and will not give any of your customers any reason to feel less special.

Percy1983

I will say in my case its video productions.

Buying equipment used has saved a lot, my main cameras cost 1/3 of the full prices.

I have to buy a lot of DVD cases and blank DVDs to which I have found buying in bulk can really cut costs down (as long as you have the money to invest and can turn the stock around within a reasonable time), its tough finding places to hide 1000 dvd cases at a time.

The third point isn't so much money saving, but I have found lower prices lead to more units shifted which overall leads to higher profits.