New Trade inquiries again this week.
The product certainly looks well and is attracting interest, however, the trade price v's RRP remains the problem. No matter how I look at the manufacturing and purchasing costs I can see little in the way of options to reduce its costs without the huge volumes required for automated production, or a lower cost TEG module.
The current work level involved in each every fan made warrant 30 minutes minimum build time, larger production batches help to an extent but we are talking a couple of minutes saved rather than 10 or 15 minutes saved. This will only come with a redesign of he main fan element to remove its assembly and replace with a pre-built component to fit.
Having converted the new batch of coolers into fans - it was frustrating to find one unit was 'faulty' out of the box - 'botched' soldering -unfortunately I had dismantled the product before I realized rendering a return to supply pretty unlikely - a call for Monday I feel. That aside, the operation was trouble free and all new batches came together well. Average build time was 28 minutes for both fan sizes.
A larger batch of components have been ordered and the production of these is scheduled for next week supply the following week. Stocks should cover the next two weeks based on previous average week order levels.
This leaves the only real option of improving Trade margins down to increased RRP - the results of which remain to be seen. Online prices direct through www.stovetopfan.co.uk provide a very healthy return enhanced through the fact that not only to I retain the Trade discount but also being non VAT registered this 20% from the RRP. I am now considering the development of Trade Branded lines. Which I will only supply to Trade and ensure they remain unique to each market and as such let the Trade develop their own retail price - this requires a little more thought on unique features / branding without increasing my production costs - as that would rather defeat the point.
As I type the UK population and several million TV viewers are building (according to media) into a frenzy of anticipation for the 2012 Olympic Games Opening Ceremony. I am unable to muster much more than feeble waft of a Union Jack flag. Switched off by the Giant Corporate Power / Brands and a true loss of the real sense of wonder at athletes of the world.
9.00pm and the ceremony starts - best go watch just in case its a good show :-)