Page 90 - MICROHUB Handbook - ENGLISH
P. 90
Think about the potential costs associated with different eventualities. If
sales of your product exceed your expectations, you will need money to
buy or make more. If a new service is well received, more employees
and resources may be needed. You must budget for the expenses of
remanufacturing or vendor returns if you suffer a high rate of returns
on new products. You might need to deliver the service again at no extra
cost to the consumer if it is substandard. Make a contingency budget
that will carry you through the process of adjustment as you figure out
how to provide your new goods or service and get past barriers in the
market.
Your overall budget for a new good or service covers all expenses, from
creation through distribution. This sum will be far more than the direct
expenses related to producing or acquiring the product, as well as the
price of rendering a new service. In fact, you could discover that you
need to boost your profit margins to pay for concerns with customer
service, marketing, and product development. Your entire budget will
help you determine how much you need to charge in order to cover
costs and make a profit.
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