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Business "Stuff". Product-Related

Bringing a product to market requires far more than fulfilling dreams, creating something special or uinque; designed to create wonderful "beauty". The directors of

brand manufacturers report to a board of directors. PROFIT and SUCCESSFUL ROI

(Return on Investment) are foremost in their thinking. Period. People seldom risk their jobs in order to chase a dream.


Generally speaking, raw material costs takes up a low percentage of investment: Only about 8 - 10 cents per every dollar of the final sales price. Wages... take up about 10 percent of the

final product sale price. Packaging, along with raw materials.. about 30%. Out of the remaining 60%, -- promotion, and advertising comprise most of the remaining budget.


Gross profit from between 12 - 20 percent is usually expected when a manufacturer deems

a product as being a success! Of course, quality, wonderful results -- all this matters.. but this is

NOT FOREMOST in the minds of brand directors and investors whose job it is to create successful sales volume and to make PROFIT for the company. Companies are responsible

to shareholders and require that a product to come to life, launch, and to create PROFIT.

And, because "time is money" a schedule is attached to the length of time a product will require in order to be deemed a success. All this is tough, and not for the faint of heart! B



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