News

Do You REALLY know your costs?

January 3, 2019

We are hearing from people that are trying to enter a market with a new product or would like to outsource the production to a current WPMA member.  The preconceived idea is that this is what I can pay for the item based on what they think they can sell it for. Unfortunately these same people have mp  concept of what something costs.  Many times they are trying to get the item produced for less than the cost of the lumber utilized in the product.

As companies are forced to run as lean as possible, it is often difficult to spend a lot of time with someone that does not understand costs.  This is a two edged sword for manufacturers as many times it is difficult to train and maintain a person that understands your costs and is able to offer a price on an item to help your firm remain profitable.

The old saying "just because you are busy does not mean you are making any money."  It seems we are hearing from more and more small start up firms that have great idea, but no real idea of what they are looking for.  The key for successful businesses is to be able to focus their efforts on the companies that do understand that there is a difference between purchasing 50 pieces of an item vs. 50,000 from Asia and want the price to be 20% less. 

By truly knowing your costs, your company will be a survivor and not one that is auctioned off for 10 cents on a dollar.

Since 1929 the WPMA has been focused on helping our members prosper in a global economy.  We act as a clearinghouse to provide accurate and timely information to assist your members.

For more information contact Philip Bibeau, Executive Director at 978/874-5445.