Should I Make My Own Skincare Product Or Get It Readymade To Start A Business

Monday, 18 December 2017

Here's an interesting calculation when you want to start your own brand skincare.
Since so many of you want it readymade; let me calculate for you.

If you take from OEM

MOQ (Min Order Quantity) for good price: 10'000
Price Per Pcs: RM 20
Total: RM 200'000

If you make your self:

MOQ for good Price: 50pcs
Price Per Pcs: RM 13.25
Total: RM 662.50

Difference if you made yourself:

RM 200'000-RM 662.50
=RM 199'337.50

Now what can you do with this extra money??

  1. Hire staff (1-3 production staff to help you make)= 3xRM 1500= RM 4500
  2. Facebook Marketing Ads (RM 1000-1500): can reach 109'000 potential Malaysian women
  3. Can do Google Ads (RM 1500)
  4. Can do bunting and Banners (RM 30/pcs x 50 = RM 1500)
  5. Can give better commision to your sales agents.

Total Things that can make you money (all the above) = RM9000

Balance you have (Readymade vs Handmade)

RM 199'337.50 - RM 9000 = RM 190'337.50
Assuming you did all the above marketing and hiring
you can get sales of 10% of targeted customer above (FB ads):
=109000 x (10/100)=10900 people purchased from you.
Your selling price of product (RM 13.25 x 4 =RM 53)

Amount You get the first month:

RM 53 x 10900
=RM 577'700

and with this money you hire more staff (and not bring it back for own use!) and double up your marketing to get more sales:

Second month = RM 577'700 x 2 =RM 1'155'400

Thats your first MILLION!

So tell me.. Do you prefer 
Ready Made or Handmade
?

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