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
designs.

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.

And you just saved yourself an unbelievable 93% in cost of inventory.

With FanFever, you'll always invest much lesser and earn a lot more.
That way, you focus on what you do best and FanFever takes care of the rest.

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