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Math for Visual Arts:
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Cost Centers
Odyssea Jewelry is a label under the Danani brand, because of this, and because the studio workspace is shared, the initial costs of the business are primarily related to overhead and maintenance. Website: - Shopify Pricing - Setup and Open Your Online Store Today – Free Trial. (n.d.). Retrieved July 09, 2017, from https://www.shopify.com/pricing Auxiliary Web Apps: - Adobe Creative Cloud Photography. (n.d.). Retrieved July 09, 2017, from http://www.adobe.com/creativecloud/photography.html?promoid=695P7SJ9&mv=other#buy-options - Ship Station Ecommerce Shipping Rates | Plans & Pricing | . (n.d.). Retrieved July 09, 2017, from http://www.shipstation.com/pricing/ - Stitch Labs Inventory Management - Grandfathered into a plan - Online Bookkeeping | Accounting Software Made Easy. (n.d.). Retrieved July 09, 2017, from https://www.godaddy.com/email/online-bookkeeping Rent: Shared with Danani Utilities: Shared with Danani Marketing: - Social media apps are shared with Danani - Shipping costs for shipping products to photographers in trade for photos. This is for 2-3 photoshoots per month. |
Reflection
The process of going through a BHR in this format has given me time to think about how even small charges can add up. It's interesting to think about how these are costs that need to be accounted for even if they don't seem to have a place. This puts the break even point into perspective as well as how these numbers won't necessarily change with scale but profits sharply increase if production goes up.
For this project I ended up excluding costs and hourly wages dependent on orders and associated with production because they vary too much and are accounted for in the price of the product. Previously I had worked the numbers out for overhead but I didn't really know how to account for them outside of calculating production and material costs into a product. Based off just the examples you gave it was a little difficult to see where making product fit in so I would love to learn more about how orders and product variables factor into costs.
I think my BHR might be high, so I’ll need to compare it with other costs to make sure this new label will be worth launching. At a later point I would like to create a BHR for my other business as well as a BHR for costs that would be shared between the two brands. I'd also like to think further into the costs of doing business, like the cost of fixing mistakes, goodwill costs toward clients, etc. I'm excited to apply these concepts to this new jewelry label as well as my existing business.
For this project I ended up excluding costs and hourly wages dependent on orders and associated with production because they vary too much and are accounted for in the price of the product. Previously I had worked the numbers out for overhead but I didn't really know how to account for them outside of calculating production and material costs into a product. Based off just the examples you gave it was a little difficult to see where making product fit in so I would love to learn more about how orders and product variables factor into costs.
I think my BHR might be high, so I’ll need to compare it with other costs to make sure this new label will be worth launching. At a later point I would like to create a BHR for my other business as well as a BHR for costs that would be shared between the two brands. I'd also like to think further into the costs of doing business, like the cost of fixing mistakes, goodwill costs toward clients, etc. I'm excited to apply these concepts to this new jewelry label as well as my existing business.
| BHR Reflection |