Tue, Oct 12 2010

Well, in the words of Liz Lemon, “What the what?!”
Let’s start with this: as a piece of design, we think Bonfi turned out pretty good. Referencing Bessy‘s original 3D, we built this thing again from scratch, making sure the files were specific to rotomolding: wall thickness of 6mm for stability (the maximum thickness achievable for rotomolding), undercuts in only the right places so Bonfi could be removed from the mold, and kept well within the height-to-width ratio for rotomolding. One early concern was the cycle time (how long the product has to stay in the mold) for rotomolding; it can be very long. But all said, we felt pretty pleased with ourselves. We even added some extra functionality along the way: a handle to aid in carrying Bonfi short distances (an easy-to-clean handle I might add, Bessy
). We added a bottle opener, bearing in mind some of the opportunities on the pipeline with our retail partners. We ditched a vinyl cover for the seat to cut costs; self-skinning foam can be UV-stabilized, and can take plenty of beating from the sun.
We felt good. We were in unison with the community (for once!
), the ID phase was the original submission, and it felt like our design department was being put to the humble use of taking Bessy’s design and, with only small changes, making it production-ready.
As soon as we had the 3D refined enough to send to our Asia office to get quotes for tooling and unit cost, we did exactly that. We made sure to ask for quotes based on two different materials: HDPE (High Density Polyethylene), and 100% recycled HDPE. Bessy had sent me an e-mail explaining that she wanted Bonfi to be a recycled product: “The goal isn’t to really market it as a green product but it’s a responsibility that I wish to follow through on.” We wholeheartedly agreed, and decided to commit to recycled material if we could do it for the right price.
Quirky Asia sourced a number of rotomolding manufacturing companies and sent the files. Unfortunately, the files were sent just before a week-long Chinese holiday, but that was fine. In the meantime we could continue with the project and get it ready for launch. We went ahead and added the final tweaks to the 3D and double/triple-checked all the manufacturing specific details mentioned above. When everyone was happy, we took the next step, bringing the assembly file into HyperShot, a 3D rendering program, to start experimenting with colorways and textures. Again, we revisited the comments boards and saw that many people loved the original colors, so we stayed loyal to Bessy’s original choices. At 8am on September 24, we took cardboard Bonfi-doubles, props and people over to a suitable local park to take in-context photos, so we could superimpose fully rendered Bonfis into the shots. Meanwhile, our kick-ass Sales and Community teams put together their usual beautiful copy, and refined our product bullet points.
While waiting for manufacturers, our Asia office continued to get back to us with questions: “Does the space between the double walls need to be filled with something?” No, rotomold creates naturally empty voids between walls. “The nubs are just ornamental, right?” No, they do add “wood-like” ornamentation but they are also to keep Bonfi more stable in both vertical and horizontal sitting positions. “What density of foam is needed for the seat?” You get the idea. Q people are thorough people, wherever they are in the world.
With launch ready to go, we held off to get factory quotes.
Whoa.
Tooling was not an issue; the quote came back at $6500. However, the first unit costs that came back were $33 (HDPE) and $30 (Recycled HDPE). Just to be completely clear, these are Unit Costs, i.e. what we would pay the factory per piece. That means a retail of somewhere around… $350. There was some discount for ordering higher quantity: for over 40,000 pieces the cost rocketed down to $31.50(HDPE)/$28.50(recycled HDPE). Out of this, the stainless steel bottle opener was a mere 30 cents.
In absolute disbelief, we got back to Q Asia to tell them that the quotes were ridiculous. They shot us back a message telling us that the quote mentioned above was the best quote, other quotes had been as high as $53.60 unit cost! We ran a cost analysis on the plastic material used for Bonfi, and based on using 5 pounds of HDPE it would be just $3.75 in material cost. We asked where the huge unit cost was coming from and our Asia office got back to us with the following responses:
1. The time for making one piece of product is long, requiring an hour to produce one piece of product. They need to melt the material, rotate the mold to gradually build up a uniform wall thickness, let the mold cool and then remove product from the mold. Time is the main reason for the high unit cost.
2. They need to use natural gas to rotate the heavy mold, further affecting the cost.
3. If we can reduce the thickness of the wall by half, the cost can be cut down by around $10. The thickness will still be good enough for stability.
After this feedback we began inquiring about injection molding, but so far suppliers have said that Bonfi is too large for them to handle. As Boyd Palmer correctly assumed on the forum, the tooling for this product would be MASSIVE.
So, presuming a $20 unit cost (with wall thickness halfed), this explains why we have had to set the price and threshold on Bonfi as high as they are.