Received Thu, 12 Mar 2009 07:56:16 PHT
Custom made can be cheaper in home business than factory made! Accept the challenge and try to produce custom made, made to order at home to meet customer's individual needs
Why can custom made be cheaper than factory made mass production?
An essential part of the end price charged to customer is the overhead of an industry. Overhead expense refers above others to:
- Rent of facilities
- Management
- Marketing
- Energy, utility bills, insurances, taxes and duties
- Administration and NON-productive staff expenses
- Transportation cost
- Storage cost
- market research
As a home business or family business you have non of all above expenses! Why?
You work from home, hence you have no additional facilities to rent! At home you always find space in your apartment of smallest house to store production material for a perfect size home business. At home you have no need for additional energy. You work amidst your family and have neither extra rooms to heat or additional light nor additional maintenance of your home space.
In an ideal size of business you personally know your customers, you know by heart his preferences, his life, his entire family, you love your customers before they have become "customers". You turn your best friends and family members, relatives, colleagues, neighbors into customers. Since you love them all, you need neither marketing nor advertisements.
Since you produce to order, you have no need to store production until sold. Your loss of unused material is minimal because your creative mind makes it possible to turn every piece of material into part of a useful product. Thus reducing substantially waste and financial cost for waste that needs to be integrated into selling price of a product.
A perfect business size always is a family business, you need neither a corporate jet nor car with driver or security guards for your management. You are your own boss and live from the quality and customer satisfaction you create. Since your direct environment turns into your customers, you have no transportation nor expensive marketing campaigns nor million dollar sponsorships of celebrities to market your products. As a loving person you cater to the direct and true needs of your best friends and thus you always sell what you produce. Custom made has a zero risk - all is sold in advance. Hence no safety margin to be included in your pricing for unsold or returned products!
In your home or family business everybody benefitting from your work - all family members - somehow contribute by worth of mouth, by using your own products as "live models" or as idea contributing or work sharing members of your home business. Hence to make it all very short: In a home business you can work with exactly 100% efficiency. You can create a working / producing environment with zero loss and zero overhead expense. At home every piece of inventory of your household also may serve your work. Hence many tools and items may serve multiple purpose. For example your home PC or laptop also will serve as business computer for possible need, such as tax forms and tax related accounting, correspondence, eMail or family web site. Whatever serves the family also server the family business and your entire home business serves your family. Hence there never ever can be a conflict of interest. The private wellbeing of your family, friends, neighbors and thus customers always is your highest priority.
Thus even if you purchase your raw material in smaller quantities and may have to pay 10 or 20 % more for those smaller quantities. That extra cost still is easily absorbed and more than compensated by the 100% efficiency factor of your home business!
Being your own boss you can make your pricing with different limits in mind. You have no share holders to pay, no non-productive management with oversized wages to satisfy. You only have your own living to finance! Already the saving of additional commercial production and storage space with insurance cost, etc make you easily competitive with any large size industrial production.
In addition, since you need no employees, you can select a healthy natural living environment to live and to work. Hence your rent of your family home is cheaper than when forced to stay near employers and industrial jobs. You can live in a natural rural area and thus also have garden, garage and other small outdoor areas needed for possible short time storage, parking of customers, etc.
What is the downside of home business?
Your reason or greed! If you want to strike it rich in shortest period of time, then you want to have high salary of 30, 40 or more dollar per hour. Thus your products become too expensive for "normal" potential customers. Hence you have to fight for a few richest ones as customers.
If however you are reasonable with your lifestyle, happy with a happy family and natural lifestyle amidst loving friends and happy neighborhood more than from excessive luxurious life, then you can afford to charge the very same dollar amount per hour than your average customer earns and thus you become affordable to all. Hence the only "competition" or "enemy" of your successful home business is your own ego. Nothing else.
In a true family business amidst friends, serving loved ones, you also become member of a much larger family - God's family - and thus you may start to benefit from increased blessing and inspiration from God in all your "business" decisions.
Love and bliss
hans






