Cost Comparison
Creating and Managing a Fan Merchandise Store on your own
v/s
FanFever doing it for you
Here's how you you can save a whopping 90% - 95% on cost of operations and inventory by working with FanFever
1. Cost of Operations:
a. If you do it on your own – Rs. 20 lac (approx) per year.
b. FanFever Standard & Gold packages cost you Rs. 1.02 lac & Rs. 2.04 lac respectively per year.
That’s a saving of 95% and 90% respectively!
2. Cost of Inventory:
a. On your own, for a set of 14 assorted tshirts, 3 jackets/hoodies, 2 mugs and 1 tote bag, you would need to invest around Rs. 5-6 lac
Plus a ton of hassles related to production.
b. With FanFever’s Zero Inventory model, you invest only for the design development cost, which could be well below Rs. 50k.
That’s a saving of more than 90%!
Read full details below.
1a. Cost of Operations – On Your Own
| Line Item | Description (All costs calculated per annum) | Cost (Rs.) |
|---|---|---|
|
Ecomm Website |
Getting a good quality site developed through a developer will be at least 50k-1lac. |
50,000 |
|
SMS & Email |
You'll need to take up services to send transactional emails and SMS. |
24,000 |
|
Content &
Graphics |
You web development cost excludes the banners and graphics you’ll need. If you decide to
do this by yourself, this will be free. Else, you'll spend an additional 10k-25k. |
- |
|
Server, SSL, CDN |
There are several hosting options. |
12,000 |
|
Website
Administration |
Adding products, description, banners, offers and other things on the website. You may be
able to hire a freelancer/part time person for this.
|
1,20,000 |
|
Designs |
You need to come up with artwork to print on products. If you already have a designer,
that's great. Else, you can hire a freelancer and pay for each design. They may charge you
2k-5k per design depending on their profile and complexity of the design.
NOTE: The cost of design is anyway extra. |
- |
|
Merchandiser |
You will have to work with at least 5-20 different vendors to get merchandise produced as
per your design. The hassle of coordinating, sampling, quality, timeliness, is a whole
different issue. This calls for a merchandiser. |
3,00,000 |
|
Warehousing |
You'll need a small room(to start with) to stock this merchandise. If you have a spare
room, that's ok. If not, there's a rent for this space. |
1,20,000 |
|
Software |
If you want to ensure that nothing is getting lost, you'll need an inventory management
software. Plus, you need to have the discipline to manage the accounting properly. Of
course this is optional, if you don't mind if some stock is getting flicked or lost. We
recommend Zoho Inventory |
10,000 |
|
Operations
Manager |
You need at least one person to manage the inventory, pack the goods as per orders
received, print address labels, invoice, packing slips and coordinate with your courier
partner. You might even need 2 people!
|
2,40,000 |
|
Courier |
You'll need a courier partner to ship. Actually you'll need 2-3 to get the right price and to
cover all pin codes. Although the cost of shipping is on actuals, the hassle of coordinating
with them is a big nuisance. Your manager should be intelligent enough to figure this out. |
- |
|
Customer Care |
Your customers are going to have questions about materials, prints, sizes, deliveries, etc.
Poor customer service will mean negative reviews and a drop in your brand. You'll need a
customer care executive on phone, chat and email. |
1,80,000 |
|
Returns handling |
There could be returns and exchanges of 5% - 10%. You'll need strong systems in place to
recover and handle that too. This is not an expense, but a major source of stress and
losses.
|
- |
|
Accountant |
This is a lot of transactions. You need an accountant to handle this business. |
1,80,000 |
|
Accounting
Software |
You'll need to use an accounting software. May be Tally. But we'll not add that cost,
because you're probably already using that. If not, that's an additional 21k.
Not to forget all the GST and other statutory compliances that you'll need to follow |
- |
|
Sell on Amazon/
Flipkart *
|
This is totally different ball game. You need to learn the tricks of the trade from scratch. At
least 1 manager to manage this. |
3,00,000 |
|
App for your
store* |
While building a native android or iOS app will cost you 2-4lac each, building a progressive
web app is not very cheap. |
1,00,000 |
|
Analytics &
Consultant *
|
You need to constantly monitor various aspects of the business. Unless you are a
marketing and ecomm whiz, you’ll need to hire an ecomm consultant. FanFever offers a
dedicated merchandise consultant to keep guiding you and suggesting strategies to
increase revenue. |
2,40,000 |
|
Miscellaneous |
Fuel, Power, Phone, Internet, etc |
1,20,000 |
|
|
Total Annual Cost of Doing it On Your Own |
19,96,000 |
1b. Operational Cost of getting all of these done through FanFever:
| Type | Cost | Savings | Savings % |
|---|---|---|---|
|
Standard |
Rs. 1,01,998 |
Rs. 16,90,010 |
95% |
|
Gold |
Rs. 2,03,998 |
Rs. 16,16,010 |
90% |
- The services that have an * symbol in the previous table are covered in Gold. Everything else is covered in Standard.
- Cost of FanFever is calculated for annual plan
- This is just in the cost of operations. Cost of merchandise and inventory is not included in the above tables.
You save a whopping 90% – 95% on operations by working with FanFever! Ever heard of a deal like that?
2. Cost of Inventory & the hassle/effort of producing on your own
A comparison of the effort and the hassle that it would take to produce merchandise on your own v/s FanFever
| On Your Own | FanFever |
|---|---|
|
Deal with 5-20 different suppliers |
One point of contact |
|
Hassles related to production and delays |
We take ownership of timely production |
|
Uncertainty related to quality |
Everything goes through a Quality Check |
|
All stock is physically with you |
Stock is in our warehouse. |
|
You’re paying up front for all the stock. Minimum Order Quantities for all products means, a lot of investment. And very few |
You’re investing only small dev charges for all flirty merchandise. No MOQs. Means very low costs. You can get a lot more designs for a lot lesser cost. |
|
Constantly stressed about liquidating inventory. You’re
stuck if some products/designs don’t move for some
reason. |
No worries. The liability of the stock is not on you –
for flirty merchandise. You can learn from it and
move onto new designs |
|
Worried about pilferages, damages (rodents may be?),
theft, etc |
Stock is our responsibility.
|
|
Inventory management hassles. Keeping count, handling
couriers, handling returns & exchanges. |
All of this is happening at our end. You are not
bothered about it at all. |
Here’s the difference in investment you make for Merchandise On Your Own vs FanFever
| Products | On Your Own | Cost (Rs.) | FanFever | Cost (Rs.) |
|---|---|---|---|---|
|
10 Round
Neck Tshirts
|
Rs. 250 x 100nos x 10 designs
1000 tshirts in stock
|
2,50,000 |
5 x Rs. 4000 + 5 x Rs. 2000. Dev cost for 5
each single and multi colour prints |
30,000 |
|
2 Collared
Tshirts |
Rs. 400 x 100nos x 2 designs
200 tshirts in stock |
80,000 |
2 x Rs. 2000. Dev cost only. |
4,000 |
|
2 Kids
Tshirts |
Rs. 200 x 100nos x 2 designs
200 tshirts in stock |
40,000 |
Rs. 4000 + Rs. 2000. Dev cost for 1 each
single and multi colour prints |
6,000 |
|
2 Hoodies |
Rs. 500 x 100nos x 2 designs
200 hoodies in stock |
1,00,000 |
Rs. 4000 + Rs. 2000. Dev cost for 1 each
single and multi colour prints |
6,000 |
|
1 Jacket |
Rs. 500 x 100nos |
50,000 |
Rs. 2000. Dev cost only. |
2,000 |
|
2 Mugs |
Rs. 250 x 50nos x 2 designs
100 mugs in stock
|
25,000 |
2 x Rs. 250. Dev cost only. |
500 |
|
1 Tote Bag |
Rs. 150 x 100nos |
15,000 |
Rs. 250. Dev cost only. |
250 |
|
|
1900 items in stock |
5,60,000 |
0 items in stock |
48,750 |
Products considered for this calculation are all from the Zero Inventory Catalog only. Costs might be similar if you choose more committed products.
