Questions1) What channels does Timbuk2 sell through and which one is the most profitable? What are some of the pros and cons of Timbuk2’s “Build your own” channel (i.e., its e-commerce channel)?

2) How should Timbuk2 go about deciding which options to offer customers in the e-commerce channel? In other words, what general principles or analysis could be used to deepen their understanding of the appropriate choices? You may want to consider several of the options mentioned (an added handle, different color logos, different size panels, etc.)

3) Estimate the cost of manufacturing a bag in San Francisco and the cost of producing a bag in China.

4) Should Timbuk2 pursue the option of manufacturing in China? If so, what challenges are they likely to face and what changes will they need to make? In particular, think about the utilization of the San Francisco factory before and after outsourcing as well as about inventory needs.

What channels does Timbuk2 sell through and which one is the most profitable? What are some of the pros and cons of Timbuk2’s “Build your own” channel (i.e., its e-commerce channel)?

How should Timbuk2 go about deciding which options to offer customers in the e-commerce channel? In other words, what general principles or analysis could be used to deepen their understanding of the appropriate choices? You may want to consider several of the options mentioned (an added handle, different color logos, different size panels, etc.)

Estimate the cost of manufacturing a bag in San Francisco and the cost of producing a bag in China.

Should Timbuk2 pursue the option of manufacturing in China? If so, what challenges are they likely to face and what changes will they need to make? In particular, think about the utilization of the San Francisco factory before and after outsourcing as well as about inventory needs.

What channels does Timbuk2 sell through and which one is the most profitable? What are some of the pros and cons of Timbuk2’s “Build your own” channel (i.e., its e-commerce channel)?

How should Timbuk2 go about deciding which options to offer customers in the e-commerce channel? In other words, what general principles or analysis could be used to deepen their understanding of the appropriate choices? You may want to consider several of the options mentioned (an added handle, different color logos, different size panels, etc.)

Should Timbuk2 pursue the option of manufacturing in China? If so, what challenges are they likely to face and what changes will they need to make? In particular, think about the utilization of the San Francisco factory before and after outsourcing as well as about inventory needs.

How should Timbuk2 go about deciding which options to offer customers in the e-commerce channel? In other words, what general principles or analysis could be used to deepen their understanding of the appropriate choices? You may want to consider several of the options mentioned (an added handle, different color logos, different size panels, etc.)

What channels does Timbuk2 sell through and which one is the most profitable? What are some of the pros and cons of Timbuk2’s “Build your own” channel (i.e., its e-commerce channel)?

According to Table 1, Timbuk2 sells through Domestic, International, eCommerce, Corporate and Other. eCommerce has the most sales and revenue and is the most profitable.

Some Pros and Cons of Timbuk2's eCommerce channel

ProsCustomers can pick and choose from 12 or 16 different colorsCustomers can have either a standard logo stiched on for free or a custom colored one for an additional $15.

Bags Ordered via their eCommerce channel are given a higher priority than bags in other channels.

ConsMore Labor is required to fill orders for eCommerce along side traditional channels.More Material is required because of the customized bags that the eCommerce channel sells.

see the bag they were configuring on the computer screen and experiment with different colorsand options.

What channels does Timbuk2 sell through and which one is the most profitable? What are some of the pros and cons of Timbuk2’s “Build your own” channel (i.e., its e-commerce channel)?

According to Table 1, Timbuk2 sells through Domestic, International, eCommerce, Corporate and Other. eCommerce has the most sales and revenue and is the most profitable.

Customers can have either a standard logo stiched on for free or a custom colored one for an additional $15.

Bags Ordered via their eCommerce channel are given a higher priority than bags in other channels.

What channels does Timbuk2 sell through and which one is the most profitable? What are some of the pros and cons of Timbuk2’s “Build your own” channel (i.e., its e-commerce channel)?

Estimate the cost of manufacturing a bag in San Francisco and the cost of producing a bag in China.

The total cost to manufacture a bag in San Fransisco is $27.71.

The Total cost to produce a bag in China is "

Costs San Francisco ChinaWorkers wage per bag $ 7.29 $ 0.94

Manufacturing overheads $ 2.92 $ 0.38 Materials $ 13.00 $ 13.00 Expenses $ 1.50 $ 0.75

Shipment to San Francisco $ - $ 1.00 Shipping and handling to customer $ 3.00 $ 3.00

Total cost $ 27.71 $ 19.06

Estimate the cost of manufacturing a bag in San Francisco and the cost of producing a bag in China.

San FranciscoRevenue $ 45.00

Hourly Wage $ 12.50 Direct Labor Content 35 mins

Manufacturing Overhead 40%Materials $ 13.00

Other Manufacturing Expenses $ 1.50 Shipment to San Francisco $ -

Shipment from San Francisco to customers $ 3.00

$ 0.94 $ 0.38 $ 13.00 $ 0.75 $ 15.00 $ 3.00 $ 33.06

China (AirShipping)

China $ 45.00 $ 45.00 $ 1.25 $ 1.25

45 mins 45 mins40% 40%

$ 13.00 $ 13.00 $ 0.75 $ 0.75 $ 1.00 $ 15.00 $ 3.00 $ 3.00

China (Air shipping)