When you begin building relationships with distributors it is
important to know that you will need to mail off FREE samples
giving them a physical sample of your work. This allows them to
settle on pricing and then if they accept the item they have it for
photographing it for their catalog.
If you decide to go this route there are a few details to take
1. distribution companies tend to buy in bulk which means you
will need to be able to keep up with orders if your lines sell
2. purchase materials in bulk which will save you a ton in
overhead. if you order 6 or more cases then frieght will be an
option to ship saving you tons of cash in the long run. Wait
till companies like mountain glass have a monthly sale on
clear or a color company.
whether you buy your material in bulk or single cases always
estimate your cost to manufacture based on regular pricing, not the
sale price as well as always include shipping in the cost of the
case. if you buy a case of 1" hvy wall and it costs 130.00 before
shipping then the actual cost will be around 165.00- then
devide that cost by the number of tubes in the case.
Below is a basic calculation you can use when figuring out
cost of manufacturing your items.
How to calculate cost of
In this example I'm using reference from internet which has
material price based on length .....
This is a generic example
example 3"-wrap and rake hand pipe
Material breakdown :
2" section of simax 25.4 hvy wall
$0.13per inch or $0.26(2"section)
1/2" section of color cobalt firsts
9" section 4mm clear for raking
Estimated total for cost
3"wrap and take spoon
Propane/oxygen/power is pennies on the dollar if you're able
to get liquid oxygen. If you are renting space you still need to
calculate your estimated per hour rate. If you pay
$1500.00/mo(power,rent,gas) break it down to per
day then estimate how many hours you work in a day and use that
number as a base calculation.
approx $50.00/day (per hour in a
If you can make 10-$5.00 3" wrap
spoons per hour your estimated cost per hour
(power,rent,gas) $5.00+(material x's
10-hr) $5.00= $10.00/hr. to
manufacture 10-$5.00 spoons
Net-$50.00(10-$5.00 3" w/r)-$10.00(cost to
Gross approx $40.00/hr.
In a 8 hr day do the math
You can see just by getting a good base line down for
estimating your cost to manufacture
you have the ability to make anywhere
$30-60.00/hr gross profit
Net =income-cost to manufacture
Now take 15% of your gross and put that aside for TAXES
GO TO WWW.WYZGUYMEDIA/RESOURCES FOR
A DOWNLOADABLE FILE TO FIND OUT WHAT YOUR BASELINE COST TO
MANUFACTURE YOUR PRODUCTS ACTUALLY IS.