While I was getting swept up in the excitement of my LLC approval, and having a successful focus group, I forgot about the lingering manufacturing costs.
My current design for the BeddyBye has a plastic infrastructure, a urethane foam covering, as well as a custom fitted sheet. The plastic and foam both need to be made with a mold. Molds are great if you have tens of thousands of dollars lying around and you know that you’ll be selling huge quantities, but the upfront costs make it almost prohibitive for anyone who’s starting out.
So far the cheapest quote for making the mold for the plastic component (JUST the mold – not even the finished product) was around $8,000. Yesterday I got the upsetting news that the molds for the foam (who knew foam needed a mold?) would be $3,000. The kicker is that on top of the mold cost, the cost per unit (if I’m ordering 100 at a time) is $45 each! And that’s just for the foam. There’s no telling how much the plastic units and the fitted sheets will cost. The upfront manufacturing costs will most likely be around $14,000. Even if I forget about the upfront costs, it will cost about $120 for each baby bed to be made once I have the molds. A hefty number especially when market research indicates that I need to keep the price under $100. With these numbers it’s impossible to ever turn a profit.
So far I’ve invested $3,500 in this project. That’s nothing compared to my emotional and time investment. At this point I fear “escalation of commitment to a failing course of action.” In other words, am I holding on to an impossible dream just because I made an initial investment? Should I get out before I risk even more?
NOOOOO! That’s the whole point of this blog. I wanted to make the struggle public to hold myself accountable. Otherwise, I would have given up the second I first thought of BeddyBye. When I started the HeSo project I knew it wouldn’t be easy. I was leaving a secure, easy job for the
horrifying thrill of following my intuition, believing in myself, and taking risks. Just as a difficult workout makes the heart grow stronger, I believe making difficult decisions will make my HeSo stronger!
Stay tuned for some of the solutions I have brewing!
Success is almost totally dependent upon drive and persistence. The extra energy required to make another effort or try another approach is the secret of winning.