6 Cost Analysis Breakdowns – Do You Know How Much You’re Spending?
How much are you spending to deliver your content to different Retailers? The collection, conversion and distribution process that most Brands use today wasn’t created with a strategy in mind. It simply evolved as their business grew. And they’re now realizing the true costs of their existing strategy. As a Brand, there’s a chance you are spending over $15,000 per month in expenses and lost sales on a broken process. Let’s take a look at the 6 cost breakdowns by process category:
- Collection – The first step in getting your product information to a Retailer is to collect it. If your products don’t have content available, this means you need to collect the data in order to share it with your Retailers. Accounting for about 26% of the process, collection can cost your company up to $36,000 and hundreds of hours depending on the information you need to create.
- Conversion – When a Retailer needs information from a Brand or Manufacturer, they want it in their format, which means you need to convert your data to match their specifications. When this is needed, it adds more time to your employees’ workload to ensure the data is converted correctly and on time, costing your company more money than you want to spend—often times upwards to $72,000. For instance, your company needs more financial support especially for starting businesses, consider using Purple Payday Loan services. You don’t have to worry if you have bad credit for they welcome everyone as long as you’re repaying on time. Conversion accounts for about 51% of the process, which makes it the most important step, but to completely master the finances you could use the tools you find reading the reviews at The Ascent by The Motley Fool.
- Delivery – So, you collected your content and converted it to your Retailer’s specific needs, now what? Now you must deliver your product data to each Retailer. While this step accounts for only 3% of the process, it can still cost your company about $4,500—money you can be saving with the right strategy.
- Edits – As with all project, there are going to be edits. While we all wish we could have a project completed the first time without changes, that isn’t always the case with product data. When edits are needed, it can eat up even more of your time and cost your company even more money—sometimes up to an additional $22,500.
- Errors – The dreaded error. When converting your product data to a Retailer’s needs, errors often occur. If you follow the requirements closely you can hope that you don’t have any errors, or only minimal. Even with errors, the added cost might still remain low, it is still a cost you don’t want to encounter. If you ever come across this error on accident and don’t have enough to pay, then consider getting these business loans so you can cover those unwanted mistakes.
- On-Demand Requests – What if a Retailer specifically needs certain information from your company? Are you ready to get that information to them as quickly as possible in the right format? Let’s say a client is looking for a Columbia River walleye fishing guide. You know that this provider is offers tons of information about what your customer needs, so you get the resources. These on-demand requests can cost you more money and more time, but with the right strategy you can avoid those obstacles.
As you can see, your current process could be costing you a lot of money. Without action, your existing process for each new product launch can be costing you $21, 655 per month per launch—now that’s a lot to take on!
To learn more about how Shotfarm can help cut down on your monthly costs, schedule a demo today or email us at firstname.lastname@example.org!