6.1 Name TWO options available to an entrepreneur to distribute his/her products - NSC Consumer Studies - Question 6 - 2018 - Paper 1

A tidy workplace is crucial for efficient production because it:

1. Enhances Safety: A clean workspace reduces the risk of accidents and injuries.
2. Improves Efficiency: Quick access to tools and materials means staff can work more effectively.
3. Maintains Quality: Reduces chances of errors and ensures that all items are in their designated places, minimizing waste.
4. Increases Morale: A well-organized and clean environment fosters a positive working atmosphere, boosting employee morale.

The labels of Nelisa's products should include:

1. Product Name: Clearly state what the item is.
2. Logo/Trademark: To reinforce brand identity.
3. Materials Used: Indicate the materials or origin of materials for transparency.
4. Care Instructions: Provide guidance on how to maintain the product in good condition.

Dealing with customer queries is vital for Nelisa for several reasons:

1. Customer Satisfaction: Addressing concerns ensures customers feel valued, which helps retain them.
2. Brand Loyalty: Good customer service can convert one-time buyers into regular customers.
3. Feedback for Improvement: Customer queries often provide insights into areas where products or services can be enhanced.
4. Positive Reputation: Efficient handling of queries builds a positive brand image and can lead to word-of-mouth referrals.

The availability of financial resources is crucial for Nelisa as it allows her to invest in quality materials, marketing, and production facilities which are essential for scaling her business.

The availability of raw materials ensures that Nelisa can consistently produce her jewellery without interruptions, meeting customer demands promptly and maintaining profitability.

To determine how many pairs need to be sold:

1. Total Production Cost = R7 970 (raw materials) + R8 270 (overheads) = R16 240.
2. Selling Price per Pair = R290.
3. Number of Pairs Required = Total Production Cost / Selling Price = R16 240 / R290 ≈ 56.03.

Hence, Nelisa needs to sell at least 57 pairs of earrings to cover production costs.

To calculate Nelisa's profit:

1. Total Revenue = Selling Price per Pair x Number of Pairs Sold = R290 x 150 = R43,500.
2. Total Costs = R7 970 (raw materials) + R8 270 (overheads) = R16 240.
3. Profit = Total Revenue - Total Costs = R43,500 - R16,240 = R27,260.

Thus, the profit Nelisa will make by selling 150 pairs of earrings is R27,260.

Reasons for Nelisa's success include:

1. Quality Craftsmanship: She has honed her skills through courses and practice.
2. Effective Marketing: Utilizing social media and having a professional brand image has helped her reach a broader audience.
3. Adaptation: Nelisa adapted her business model to include online sales, capturing more customers.
4. Resource Management: Efficient handling of resources ensures smoother operations.

Likely continued success can be anticipated due to:

1. Market Demand: The growing interest in handmade jewelry may continue to attract customers.
2. Customer Loyalty: Positive relationships with customers lead to repeat business.
3. Scalability: The potential for expanding her product line or reaching new markets.
4. Financial Management: Knowledge of her costs and pricing indicates she can sustain profitability.