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Tuesday, December 30, 2014

Product Manufacturing/Distribution (updated)

        Attention was focused on bringing the manufacturing aspects of "Gnomes in a Gnutshell" into alignment with the practical realities of assembly, production and inventory. This involved production line methodology, which for the most part has been refined down to the point where assembly procedures have proven to be workable and efficient enough that the product can fall within the anticipated price schedule and still allow for a reasonable margin with some latitude. 

       This assumes the price point is at the maximum* amount the market will allow for a product of this nature and not discounted for the sake of expediency, or some presumed competitive pricing sought by wholesalers who strive to turn more quantity at lower cost.

*Note to suppliers: this maximum pricing cannot be the basis for manufacturing and supply costs because the window for this pricing structure is too small for a sustained position. This introductory price structure provides a surge of influx to open the markets and accommodate for tooling production.  The price structure will inevitably settle down to a lower margin as production/distribution increases and demands for discount markets come into play. Further discussion on this subject will take place.


   Clearly more quantity will aid in gaining a stronger presence in the marketplace, by the visual impact and presentation of the product, but devaluing the product will not serve the greater need to recoup the very large investment in the core product or generate the capital required for implementation in the costly production arenas of the theatre and cinema. So discounting the product will be avoided as long as possible.

       Discussions of Film & Theatre Production Management will continue take place on the IMS Virtual Studio rather than here.


Details of Production Line Logistics

       These thoughts (when written) referred to e-Storybook, but may also be applied to the hard copy book as well.  Releasing the product, involves meeting the inventory needs of both raw materials and finished product - before promoting the ability delivery the product to meet demand.  I am seeking a minimum of 1k units in stock (ready to deliver) with a production line growing toward the capability of producing 5k units per month.  Greater quantities may require subcontracting, but thus far I seek to keep assembly, inspection and packaging in-house, unless another advantageous arrangement can be made. These are issues under consideration.

       So "in a Gnutshell" the actual release of the product and promotion of such, is still under the restrictions of financing, the development of suppliers, production line logistics and inventory requirements.  Facilities are becoming an issue as well, as the dynamics of the studio space are changing, in large part due to cash flow and the large expenditure require for development of this product. I discuss this subject on the IMS Virtual Studio blog.

      Other factors effecting the release of the product are; the simultaneous implementation of the hard copy volumes, assorted registrations with professional organizations, and more importantly - improvement and supplementation of the artwork for Volume Three.

    In addition to Volume Three, there have been appendixes added which refer to The Gnomic Tales, which would be most advantageous to illustrate, but at this point the time and cost of implementing those illustrations are both prohibiting factors.

       It would be safe to say that available resources as well as other logistics are slowing the forward momentum of this project.  So one solution to this; is to accept pending orders, which helps to identify the outlets which seek to distribute this product, as well as the quantities which might be expected for production. I have outlined certain parameters in that regard below and am continuing to develop the components required, not only for our production line, but for the distributors specifications and I am striving to strike a balance in that regard.

       If you are a partner in this project; I recommend backing up any e-mail communications with a hard copy sent to Image of the Mind Studios, 1325 Industrial Boulevard, Southampton, Pennsylvania 18966. I say this because of changing circumstances and possible relocation of the studio.  I do not expect this occur with immediacy, but options in this regard are under serious consideration and may have a bearing on production activities. This is relative to the facilities conversations mentioned above.