Lesson 6 – The New Product Template

The following is the transcript:

00:00:00:00 – 00:00:27:19
Unknown
Welcome back to module three. Lesson six the new product template. In this lesson we’re going to learn how to use the new product template to calculate the true cost of our product. We’ll start by copying and renaming the template to keep our original clean. And then we’ll put together our product recipe by pulling that data from our material list.

00:00:27:21 – 00:01:03:03
Unknown
We’ll also go over the mechanics of entering time, packaging and shipping costs. And finally, we’ll wrap up with an overview of how the data that we’re entering is directly impacted by Etsy’s fees. Hello and welcome back. When last I left you, we were in our Master Materials list. And here are all of the materials that we entered. And now let’s take a look at how easy it’s going to be to use this information.

00:01:03:06 – 00:01:33:17
Unknown
First we need to make a copy of our new product template so that we always have this nice clean template available. We’re going to choose right click on the title of the tab New Product template and choose Move or Copy. Then Create Copy. And I’m just going to select Move to End. And that’ll put the new copy at the end of the tabs.

00:01:33:19 – 00:02:02:11
Unknown
And there’s my new tab. And if you recall that first lesson when we went over the Excel basics, we it’s very easy to rename it before we do anything else let’s rename this. I’m going to right click on that tab again and choose rename. I’m going to rename this Daisy. Welcome.

00:02:02:13 – 00:02:42:14
Unknown
And then choose enter. So now I have my new product template. Still nice and clean. Nothing there. And my Daisy welcome tab in column A cell a two. Retype your tab name I’m going to type Daisy underscore. Welcome in cell A two. This is needed for the workbook to work properly and pull everything. And then I’m just going to tab into material ID.

00:02:42:17 – 00:03:12:24
Unknown
Or I can click into material ID and then select from this list. Now this list is linked to our master list. So if you don’t see something that you need to build this Daisy welcome sign, then we just need to pop back into the master list and add it. There. But I think we have everything because I’m pretty sure we were very careful to include everything.

00:03:12:27 – 00:03:43:10
Unknown
So first I’m going to charge, start with the round word. And when I select the round wood it fills out the information that it has. I’m also going to give you a little quick tip on something. If you can’t see all of a row or column, you just simply double click and it will expand the row so that it is, large enough to show you everything that’s there.

00:03:43:13 – 00:04:34:19
Unknown
Now, I only need one of these round 12 by 12, so I’m going to choose one. And you can see it extends the total price. Great. Now let’s add the rest of the materials to the recipe. Remember I always want to start with the name that’s on the tab.

00:04:34:22 – 00:04:58:22
Unknown
Okay, let’s go over what I have here. First of all, I’m just going to resize this okay. So first of all, I didn’t put quantity one for everything. I happen to know that these base sheets, I need at least one and a half in order to make the cuts that I need because of the shape and because of the size.

00:04:58:29 – 00:05:38:25
Unknown
So I put two. The glue is the glue is what the glue is. It’s hard to quantify glue. So I feel like just putting any quantity there $0.25 is accurate, unless I know that it is very glue intensive. And then I’ll add more for the spray paint. There are four colors needed. Each spray paint can cost about $7, and one of the colors is pretty extensive as it’s going to color the entire both sides of the flat round.

00:05:38:28 – 00:06:10:26
Unknown
So I think that, quantity of aid at $0.25 each is, fair. And then the picture hangers, we spent a lot of time on the picture hangers. And we know that if I’m going to have a hanger, I’m going to need two screws. So I put a quantity of three. So my total material costs are extended based on the cost that we put on our material list and the quantity that I’m using for this particular item.

00:06:10:28 – 00:06:41:23
Unknown
If this were me creating this page, I would also probably put a picture of the actual project because this is essentially a catalog for you. This is a catalog for you. This is a catalog that shows you what the project is and all of the things that you need in order to make the project. So you don’t have to create a lot of inventory just to sell something on Etsy.

00:06:41:23 – 00:07:02:13
Unknown
You only need to create one thing and take pictures of it. And then if somebody orders it, then you can make more, right? So having a catalog that shows you how much it’s going to cost you to make, or if one of your friends wants you to make it for them, you know what it’s going to cost. All right.

00:07:02:14 – 00:07:35:09
Unknown
We’re not done yet with this tab. Let’s take a look at this area here. Now, cutting time, is because, it says cutting time. It’s really labor. It’s the time that’s spent and cutting the materials, whether you’re cutting it on a cricket, whether you’re using scissors, it’s the time spent assembling. It’s the time spent, wrapping, gluing, painting all of those things.

00:07:35:12 – 00:08:01:10
Unknown
And I’m going to be honest with you right now, I don’t know how anybody that sells crocheted projects on Etsy makes any money. They are so time consuming. If you are going to get paid for your time, you need to track your time. So I happen to know that the Daisy welcome sign takes about 30 minutes to cut, but I’m not cutting it.

00:08:01:13 – 00:08:31:28
Unknown
A machine is takes me about five minutes to get the machine set up. About five minutes for me to send the command to the machine, and then another five minutes for me to switch out the different materials to do the different cuts. So that’s 15 minutes, but I’m not tracking the time it takes for me is sitting here waiting for the machine to get done right, because that’s another half hour and I can’t leave this particular kind of machine alone.

00:08:32:01 – 00:08:58:29
Unknown
I’m not tracking that because I, I can find other things to do. But what I do need to track is I do need to track the additional 20 minutes that it’s going to take me to spray paint all of the pieces. And then when they dry, glue them all together. Right. So that’s going to be 35 minutes in my time.

00:08:59:02 – 00:09:27:10
Unknown
The default here in the template is to pay yourself $85 an hour. Now you don’t have to do that. You can pay yourself $25 an hour. Because in the end, at the end of the day, the master product list is going to provide you with the suggested retail price that takes into account paying yourself whatever labor you’re calculating here on this item.

00:09:27:12 – 00:10:07:00
Unknown
So if you think 35 minutes at $25 an hour is fair, then that’s what you should do. If you think that you should get paid $25 in labor every time you make something, regardless of whether it’s an hour or not, then just put 60 minutes there. Follow me. Okay, packaging. I always like to put $0.75 or $1.50 because there’s always packaging, whether it is kraft paper or cellophane or newspaper, there is packaging.

00:10:07:00 – 00:10:44:23
Unknown
You need to wrap something in tissue paper, right? There’s always packaging and then shipping costs. So for me personally, I ship USPS flat rate medium for this would be a medium. There’s let me just show you the website. So they have a side loading medium box that is 14 or 13, almost 14in by almost 12in. And I know for a fact that the 12 inch round circle fits inside that nicely.

00:10:44:23 – 00:11:11:05
Unknown
It’s snug, it won’t move around, it won’t get bent. And I also know that it is a flat rate of $19.20 in the continental U.S., so I’m not going to get hammered by shipping and I can ship, priority, and I’ll be able to track the package so I won’t ever run into a problem with somebody saying they didn’t get it and me not being able to track it.

00:11:11:07 – 00:11:43:19
Unknown
So those are my fees. Now, you may ask yourself, why do I need all this? Well, when we get to the master product list, which is the last tab, when we get there, you’ll see that that what we calculate, Etsy calculates their fees on the total amount that you get paid, not the sale price. So your paying fees on the sale price plus the shipping.

00:11:43:22 – 00:12:14:22
Unknown
Okay, I just want to show you one more quick little hack before we close out of your training on the new product template, I showed you how you can use this new template and you can right click and you can copy and you can make your recipe right. But I didn’t show you. And I want to show you now, if you are making something similar to this, you can right click on this and do the same thing here.

00:12:15:00 – 00:12:44:01
Unknown
I know. So I’m just going to right clicked on it. I’m going to choose create a copy. Move it to the end. And there’s my Daisy. Welcome to now you have to rename this because Daisy welcome to doesn’t tell you what it is. Right. And we really want to use our tab names to help us organize. And now that the tab name is different this has to be updated.

00:12:44:01 – 00:13:16:08
Unknown
Right. So I’m going to choose underscore DIY. And I’m also going to show you how I’m going to just copy fill all of these down. Now what’s the purpose of having two tabs exactly the same. They’re not going to be the same for long okay. First of all I’m not going to need the glue, but I will need alien’s glue, which is a very small container of glue I need to round wood.

00:13:16:12 – 00:13:21:16
Unknown
The sheet wood aliens glue.

00:13:21:18 – 00:13:49:20
Unknown
I won’t need spray paint, so I’m just going to change this to the picture hangers. And then I’m going to delete this last one. Why? Because this is unfinished. This is going to be an unfinished wood kit. And that means that my labor is going to go down, down, down. It’s going to go down to 15 minutes. Why?

00:13:49:23 – 00:14:13:10
Unknown
Because as I already explained, all I have to do is send the job to the laser cutter, put the material in, flip the material around, take the material out. Now, I’m not going to have to glue anything. I’m not going to have to paint anything. I’m just going to cut the raw wood, package it all into a kit and ship it out.

00:14:13:13 – 00:14:43:00
Unknown
Nothing down here. Much changes except for my labor. All right. And that’s it for the new product template. What we covered were copying and renaming your sheets and tabs. I showed you how it pulls material into that product sheet and how to enter your time, your labor, your shipping, and also the importance of keeping track of all of those things because of how Etsy charges in their fees.

00:14:43:03 – 00:15:02:27
Unknown
Coming up next, the master product list. Yay! You’ll learn how to pull in your products, evaluate the suggested sale price, review to the estimated Etsy fees, and how to understand the Etsy Marketplace. Knowing what you know now.