How Brando Wears set up the pricing strategy?
Brando wears checks on the market value of the material required to make the product. And then forecast the pricing strategy of the brand. While some costs are fixed.
For example, if we are manufacturing a pant. We will check how much leather is required, how much other fabric/Cloth is required, and how much yards are required to make a pant. We will also calculate per unit cost according to that.
Similarly, ZIP, Thread, Solution costs, Electricity, and Overhead costs, Freight charges, and packaging cost. And then we set out the profit.
Products: Fashion Wears/ Motorbike wears/Bavarian/ Hunting and Camouflage.
What are the daily routines and challenges in Brando wears?
The manager said we make sure our workers come on time not like someone is coming at 8 or the other is coming at 9. We provide them proper schedule. Secondly, the material required is in stock or not because if due to any reason we are out of stock.
This may lead to a delay in the whole shipment and we can lose our client due to that. Sometimes we know that there can be a shortage of specific items in the future, so we stock those materials according to our needs.
Workers are given targets that they must complete the order in the given time frame. In case of power failure, we have the backup. Production managers, Chain managers, and supervisors are given the specifications (Measurements, Dye, Thread, etc. of product.
They also check reports on different stages for check and balance of the quality. So that at the end when the product is ready the inspector does not reject the whole shipment based on technical problems.
Which currency you are dealing in and how you respond to currency fluctuation?
He said, we are dealing in Dollar and not in any other currency. While calculating the amount we consider some flexibility or leverage so that if dollar price increases it does not affect our profit that much.
What if the competitor decreases the price?
When a competitor decreases price, we do not decrease our price. We change our product’s specifications. Like we switch to material which is less costly yet attractive which adds value to our product.
We increase the quantity of production so per unit cost decreases and we end up with some profit margin.