Labor How long will it take to make? Since Grovemade works in small batch manufacturing, we often launch products after only making a few dozen. This doesn’t give us enough concrete data to know how long it will take to make hundreds or thousands. We have to use a combination of estimation and our gut.
Material How much do the raw materials cost? Because the natural materials we work with are inherently variable, there’s quite a bit of guesswork in predicting waste, a big factor in the overall cost of the product.
Brand How does it fit in the market? Design, functionality, aesthetic, and quality of materials all need to be taken into consideration before settling in on a price. Where best do we balance value for our customers and making sure we have enough margin to sustain a financially healthy business?
For example, we’re about to raise the prices on our catch-all and wall hooks. After making over a hundred of each, we’ve realized the cost of labor to craft these meticulous designs is too much for the prices we charge. Having exhausted our efforts to make them more efficiently, we have to choose between discontinuing them or raising the price to make them financially viable. We choose keeping them!