Giberson’s Glass Studio
Giberson is running out of savings and needs to find a way to make his glass studio profitable. The main problem that he is facing is a lack of knowledge of how to price his products due to some uncertainty about their costs. If he could figure out how to make his products more cost-efficient and allocate his time more wisely, he could keep his business from going into bankruptcy. I think that Giberson could start out by cutting out operating costs such as the contributions, dues, and subscriptions. These monthly costs may be needed but are not essential to the business and only have to be suspended until the business stabilizes. He could use this money to advertise and promote his products in order to increase demand since his $20 budget is a little bit low. Giberson could also use the unused glass, also known as “dirty scrap” to make a type of glass that sells for a cheaper price. There are people out there who specifically like recycled things. He could even offer it for custom-orders at a lower price than the original glass. Additionally, now that the costs have been broken down from Giberson, he must decide for a specific mark-up percent that he would like to apply to his products for pricing. It creates consistency between the different items and it also enables him to make custom orders. Gibson should also be more organized with the time he spends talking to visitors and friends. Talking to them is important, because they might buy from him in the future but he should consider assigning a specific time when his studio will be opened for these activities so that work is not left incomplete or processes have to be restarted. I think these few steps will help Gibson successfully improve his business.
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