Miss Grace Marketing 101
Marketing communicates value. The four P’s of marketing are price, place, product, and promotion. We have learned that our product is not priced well enough to include postage and distribution. The website we developed required us to input proper distribution and tax information we neglected to enter properly. Consequently, our Christmas Sales did not make a profit. In fact, we lost money. Adjustments have been made to include postage with our orders.
Packaging was also a problem. Soap can be a delicate product and too much tension from packaging can squish it and not enough packaging will allow too much rattling around and damage the product that way. We came up with a solution to give us the right amount of coverage in packaging that doesn’t cause extra postage costs. It also arrives in a pretty tissue paper wrap to communicate luxury and refinement values of homemade soap.
We struggle with pricing products to reflect the true cost of direct materials, containers, labeling, direct labor, and process expenses. We have learned that we cannot compete with Walmart but our prices easily compete with Walgreens bath products. Fragrance is the largest cost of direct materials in our products and we are researching how to develop our own and keep quality high. We are also examining the idea of promotional pricing that will allow for less expensive mailing and postage costs. All Property, Plant and Equipment costs are a loss this year as Miss Grace is putting all profits to her Junior High Washington D.C. field trip this Spring. She will eventually have to pay off her equipment loans, but not yet.
Product development is ongoing and we have expanded our operation to include a Research and Development Department. Thank you for your patronage and support.