After the presentation in Week 8, we were told that it would be better for our concept if we changed from doing an app to creating a website as it would be considerably cheaper. We were also told to create a more fun informal presentation style.
Because of this change, we needed to adjust the cost of the website and of how much things will cost overall
We needed to figure out the cost of creating a website, we realized we would need specialized javascript. From looking at several quotes on the internet we figured it would cost between $4000- $10,000 we budgeted it at $4000.
We also adjusted the budgeting for the marketing. Figuring that $10,000 would give us $20 a day for 2 sites. we will use both Facebook and Instagram and at 250 per day will give us 250 days of advertising, that $5000 dedicated to each site. With the way that these ads can target customers specifically this level of marketing should be enough.
We wanted to estimate a flat rate for shipping, so we looked at what the price is for shipping a standard size 1 box. The size one box is 16.5cm x 23.5cm x 7cm, just the box costs $4, tracked with postage its $6. We decided to add .99c per package so we still make money on these transactions.
we also decided to add free shipping for first time users, to encourage them to try it. if we have $6000 for shipping that means we can pay for 1000 people, hopefully, all those people sign up and we can use some of the revenue from premium payments and shipping cents to cover the cost of free shipping. We hope to discontinue the free shipping in future or to structure the profit margins of the brand in such a way that it is more affordable if we have a sustained growth at 20% we can hope to make a return on investment in 2.5 years. depending on the viability of the free shipping.
Fashion Forwardly 