Page 44 - MICROHUB Handbook - ENGLISH

Therefore, as a craft business owner you would need to be aware of the

costs of acquiring key resources in various ways, which of your key

activities and key resources hold the largest share of the total costs, and

at what capacity do you use your key assets and staff.

Based on such information, you should then undertake and

compare costs at various production levels
and resource acquisition modes (buy, share),

so as to try to minimise the overall costs. Any

efforts to minimise costs should however also
consider their impact on the quality of the manufactured

product, its promotion, sale and

delivery activities, and if this can hamper the potential to attract
and retain customers.

On the other hand, once you’ve established your offering

(product/services range), the different target customer segments and

main sales channels, you can then structure your revenue streams.

These can be best structured along the different types of products

and/or services that you offer and your sales channels (your workshop,

artisan fairs, eCommerce platforms). Should you have different prices

for different customer segments, possibly linked to their purchasing
power or location, then you could also have different revenue streams

from different types of customers.

The main drivers of revenues along such structures will be the sales

volume and the pricing of your various offerings. Whilst you have less

control over the sales volume per se, although this is also dependent on

the quality of your product, promotion, evaluation and sale activities,

you have total control on the pricing of your products, which in turn

further impacts the sales volume.
.

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