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If you are in the business of designing goods and services, then you need to be aware of all the factors that go into deciding how to make them. Below is a list of things that have been identified as being important when making decisions:
What type of customer do we want? This will help us determine what features should be included or excluded from the product.
How much money can we spend on developing this product? If there isn’t enough money available for development, then it might not be worth creating just yet.
Where do we see ourselves in five years? What changes might happen by then which would affect our decision to create this product now or later.
Next Sentence:
What are the most important features for our customers? This will help us determine what should be included in order to make this product as appealing and useful to them.
How many people do we anticipate will buy or use this product? If there’s not going to be enough demand, then it might not worth making just yet.
Is there a competitor who already has a similar product on the market that is successful? Should we create something different so they don’t have an advantage over us if we decide now instead of later?
The next few sentences would give more examples about how these considerations affect decision-making when developing new products. The following example may be applicable: “Another consideration is how much the product will cost to make. If we can’t charge enough for it, then there’s no point in making it.”
-How much does production of this item typically cost? The pricing needs to be high enough because if not many people are willing or able to buy a cheap version of a product that is rich in features, then they won’t want one at all.
The next few sentences would give more examples about how these considerations affect decision-making when developing new products. The following example may be applicable: “Another consideration is what kind of profit margin we think customers will pay for this type of good or service.” For instance, some people might like paying higher prices but others wouldn’t so an appropriate strategy would be to offer different types of products for these two groups.
They may also want to consider their competitors in the industry since they’ll need an edge. For example, if many people are already doing similar things then you will have a hard time making your product stand out and there’s no point in wasting time on that one when you could take it in another direction or find something new altogether.
The following sentence can give more examples about how this factor affects decision-making: “If we don’t know what our competitors are up to, then we risk not being able to make enough sales.” Another consideration is whether or not building relationships with other businesses might help them get ahead – but they should only do so if they’re
cost of materials, labor and time to produce goods or provide services
this should be determined before the start of production. it is important to know how much an item will cost in order to determine if it’s profitable enough for a business owner.
demand for good or service
: demand refers to how many people want either product or service. these two factors are related because as more products are made that require less time and resources, the value goes down. so there may not be high demand for those lower quality items which leads back into supply..make sense?
supply (available quantity) of workers with necessary skills/specialties required by industry
when evaluating whether one wants to enter a particular industry, one should determine the availability of workers with necessary skills and experience.
costs associated with production
: these costs will vary by industry but can include things like raw materials for a good or service as well as labor
competition in market
competition is another factor that impacts supply. when there are more suppliers than demanders, then prices go down to entice consumers into buying something else which means lower wages for those who work in this field because their employers have less revenue coming in. it’s always about making money!
certainty of future sales/future success of product or service offered (i.e., quality)
: if the item being sold has high potential for future growth or sale value then the business will invest more money in this project, which means higher production costs
future trends and expectations
every year there are new developments that may impact how goods or services are made. for example, when someone wants to make a cd of music they have to think about whether people still buy cds anymore. if not then it would be better to provide them with mp files than having all those CDs on hand because no one is going to want them!
How do you decide what factors go into making something?
Costs associated with production can vary by industry as well as competition within the market but sometimes quality also plays a factor based on future sales potential (i.e., products level of success). There are many other factors that can come into play, but these are the most common.
market demand
this is so important because if people do not want to buy what you’re making then no amount of production cost will make it a good idea!
technological advancements: new technologies may change how much time or money must be spent on producing goods or providing services. for example, when someone wants to produce an app they have to think about whether apple is updating their software soon and everyone switches over from android (if there’s enough market demand). otherwise they would need more programmers and designers which adds up in both costs and time given that those professionals might be hard to find depending where you live. also consider any additional costs or time that may need to be spent on adapting the app for different operating systems.
supplier availability: if you’re trying to produce goods, it can matter a lot whether suppliers are available and able to provide enough of what you need in good quality at affordable prices! think about how much your supplier will charge for shipping as well (or if they do not ship). there also might be delays because some suppliers cannot give everything needed all at once so this is something else to consider – when’s the next shipment coming?
skillsets: depending where you live, people with certain skillsets might be hard to find which means either more money needs put into training new employees or other options like outsourcing must be considered. if you’re trying to make a service, then it’s harder because there are all sorts of skillsets that might be needed for each specific customer.
what is and isn’t allowed: what your company can or cannot do legally also plays an important role in determining how goods and services should be made! this includes things like whether the product needs licensing or patents – which will affect manufacturing costs as well as who can work on it legally. -industry standards: what’s the most efficient way to make your products? which method will be the easiest and cheapest for you, but also provide a high quality of product. if you’re an entrepreneur or part of a company that needs to compete in the market with other companies, then it may not just come down to cost – there could be industry standards too! so this is something else to consider when deciding how goods and services are made. What Factors Determine Whether Goods or Services Are Made? There are many factors that determine whether items should be manufactured rather than purchased from elsewhere. The answer varies greatly depending on where they live, their skillsets available nearby as well as legal requirements such as patents and licensing.
