Since the last post a few weeks ago Ten&Lee has been advised by fashion experts (Fashion Angel) to add more supporting documents & to re-evaluate the costing sheet to produce the first production run. Ten&Lee's current manufacturer who produced the samples/prototypes & gradings have quoted a price per unit & now Ten&Lee is seeking another manufacturer to find a lower quote to reduce the production costs.
The mark up price in the fashion industry is 65% on top of the production cost, to cover fixed costs to make a profit from each sale. In order for Ten&Lee to keep the original selling price in place & not to increase the price based on the mark up cost, we will have to locate a cheaper manufacturer to produce a small production run.
Ten&Lee has located a few manufacturers using the lets make it here directory & has arranged an appointment to discuss costs and quality to make the swimwear pieces this week. If the appointment is a success & the new manufacturer can make the same quality swimwear as the samples/prototypes for less Ten&Lee can apply for a smaller loan.
To keep the costings down Ten&Lee has decided not to go ahead with purchasing tissue paper to wrap the costumes in, as they will be packaged in a ziplock bag.
The next post will cover the resubmittance of Ten&Lee's cash flow forecast; profit and loss forecast; & costing sheet for the loan application.
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