Costs for Creatives: get the cost of your product, easy and fast. | Cristina Dominguez | Skillshare

Costs for Creatives: get the cost of your product, easy and fast.

Cristina Dominguez, Designer, Entrepreneur. Always learning

Play Speed
  • 0.5x
  • 1x (Normal)
  • 1.25x
  • 1.5x
  • 2x
5 Lessons (12m)
    • 1. Video 1 Intro VCU

      1:24
    • 2. Video 2 - Costs Overview

      4:21
    • 3. Video 3 - Variable Cost Worksheet

      4:32
    • 4. Video 4 - Wrap up

      0:53
    • 5. Bonus track

      1:07

About This Class

Do you think numbers are  a hard topic for Creatives?

I bet after seeing this class you won't believe how easy they can really be.

I used to be afraid of finances and all related with numbers, but now is one of my favourite things to do in my business!

I am going to share with you an easy way to get your first costs done, and you will find out how to do it fast and without any struggle.

I will explain it very simple and graphic way so it will be fun to do!

At the end of this class you will learn how to establish the cost of your product in a fast and fun way.

For this class I want to focus on creative businesses or entrepreneurs that wish to sell a handmade product and need to get the costs of that product done. You don't need to have prior knowledge.

Even if you have already made some costs for your business, you will find this useful as well, you are welcome to download the templates of workingsheets.

Anyone can join, WELCOME and let's get started!

Transcripts

1. Video 1 Intro VCU: Hi, guys. My name is Cristina and I am an independent designer entrepreneur. For the last eight years, I've been working on my own business, create in shoes and handbags. Also for some years I thought businessman class for the Sinus. During that experience, I found myself creating new NBC rates to explain number to the students. Sometimes for creative minds. It is hard to go to the management aspect off business such a finances, administration organization caused. But we also know how important it is to know the basics, right. We're going to break down the numbers into different classes in this class. I want to share a way that I find very easy to go to the basic cost. So if you are an entrepreneur or you make homemade goods and you want to establish the coast of your business, this glasses for you, I will share something. Plates off work. It's so the only thing you have to do is adjust them for your own business. Okay, so if you're ready, let's get started 2. Video 2 - Costs Overview: Hi, guys. This is a ghost overview. I made this infographic so you can have the full outlook off cost and see the starting point. So let's start with the variable cost, which is divided into three sections. The first section are the raw materials that you need to make your product. For instance, the works and threat for a candle. The fabric Seper on Bhutto's for a pair of thrusters, clay on ink for poetry, leather on the Boco for a built, it said through the next variable cost is a direct label. This is any work don't directly related to the product, for instance, so in a two shirt coring would for a table pouring works for the candle and so on. That brings us to packaging. This one is used to protect the product. It can be either a back or a books. Many times, packaging is also used for presentation or advertising. The problem is describe in a beautiful manner on the ingredients are listed, For example, just think about all the products in the supermarket like a box of cereal. Ah, face moisturizer. A. So another good example can be the packaging off a mobile phone. These three are the main variable cost, but there is also another one that can fit this category. There is the frayed cost or the shipping ghost. This can be added to each product, especially when making a direct sell online. But in case the company ALS a delivery truck, the transport cost will be considered part of fixed cost. Okay, now we go to the overhead. Cost this at the indirect or fixed cost off the business. They are in direct because they are not directly related to the manufacturing on their fixed because they are static in nature. This is the case off the rent, the other destructive salaries, the advertising on the insurance cost to name a few break even. This is the point where all of your costs are covered by yourselves. This means you're not get making any profits, but not losing money, either. Safe schools are the same as you want to achieve in a certain amount of time. The goals are always necessary to know where you are headed. I'm getting on track. They should be achievable. This means realistic on they should be quantified wholesale price. After you have got your total cost well established, it is time to set the wholesale price. This is the price that you get to a big client. For instance, a big lion can be a star. The retail price. He's the one that the stores get to their customers, which is to say, is the amount that the final customer pays for your product? And, of course, when you have direct customers, you can also sell your products for the same return price. Okay, so this is Stand off the overview. Let's go into the next lesson, which is the variable cost exercise on your class project. 3. Video 3 - Variable Cost Worksheet: Hi, guys. So we have a right to the core off this lesson. This is the worksheet where you're going to get the viol cost off. Your product in this exercise will pretend we were making a T shirt. Please note. But these are not real prices. It is just on example. As you can see, it's divided into two sections. The 1st 1 here on top is the direct material cost. We start by writing down all the raw materials on supplies that I needed to make the product. For instance, if I break the threat, the packaging, etcetera, In the second column you write down the stander measures or commercial presentation off the raw materials. The Third column You fill it out with wholesale prices off the materials you get from your suppliers and in the fourth column, right down for how many finished brothers the remote off raw material purchased deals. All the color cells like this green here on the yellow, wants contained formulas. So you shouldn't write down anything in those right here. The total amount off the coast off the materials will appear. Once you're finished with the chart of materials, you're halfway there No, we get to the other section the direct labour cost. Here you have to write down the price off every activity or process, and then you're done here. The total cost off the direct labour activity will appear on down here. The total amount off the variable cost per unit, which is the some off the total material cost on the total labor cost. In case you don't know the labor cost, how much it's pay for each process or you are going to hire employees. I have another chart for you, so let's check it out. The first chart is pretty much the same. I only have separated the materials in gates. You buy a product that is already made or is halfway finished. But as you can see, it's pretty much the same. Now look at the other example off the chart off Labour Coast. This is the case when you don't really know how much is paid for the processes. This is an option that I find quite useful. I hope you do, too. Here you put how much space for our to the person that dreams or gods the fabric and how many pieces per hour. This person is able to make do the same for the other processes in the formula. You can see that the wage cost per hour is divided by the pieces made per hour. And that's it. Now you have the variable cost per unit off your product. Okay, you guys. So this is going to be your class project. Go ahead on down on the templates unit and fill them with your own business in for engage. You don't have the rial infra jet. You can make some up until you get the accurate one. Hey, I remembered to change the title and put the name off your own product. It will also be very nice to see a picture or a drawing off it. Okay, you guys. So that's it. I'm really looking forward to see your class products. 4. Video 4 - Wrap up : Hey, you guys. So that's it. I really hope you enjoyed my class. So now is your turn. Go ahead, download templates and start playing with your numbers in the next classes. I want to show you how to complete the cost off your product with the overhead cost, how to establish the price of your product and also how to protect your sale. Schools remember to click follow so you will be the first to know where the next lessons are available. If you have any questions or comments, I will be trail to hear from you. I'm looking forward to seeing your amazing class products. Hope to see you soon, Tao. 5. Bonus track: okay. You just need to fill the gaps in the literal. Also, if you have any questions, please contact me. I will. I will be trailed to hear from you. I will be trailed to hear from you. I will be thrilled to hear from you since just play with it. Thank you. Okay.