evaluate the business idea

"Use leather or fabrics to make pen wallets and pencil cases. Sell the wallets and cases empty. Or

buy pens and pencils at prices and add them to the wallets and cases respectively to make the

finished products."

If they sell the wallets and cases empty

advantages :

- the price not very high

-lower cost

-save time

-more products

disadvantages:

- do not have a big marketing

- if they want to sell their products very well, they need change the style , design of the products.because pen wallet and pencil cases are not a necessary good, people can choose buy it or not, if they want to increase the demand and profit of it,they need make people like to buy the products because of the style and design.

-not very easy to prepare the resource of the products.

If they buy pens and pencils at prices and add them to the wallets and cases respectively to make

the finished products

Advantages:

- the demand of it increase .

- more profit

- the market bigger that without pen and pencile.

-increase sales

disadvantages:

- more cost.

- they need more cash flow(because they need buy pen and pencile from another company, they need cash to buy , if they have a lower cash flow, they can not control the finance and might can not buy pen or pencile to make the finished products that they need.)

My opnion:

I think they should buy pen and penciles to make the products finished, because pen ,pencile and pen wallet , pencile case are complements, when you have pen you want to have a pen wallet to control youe pens , aren't you ?=) sometimes you might think you prefer to have a beautiful pencile case , you do not mind the pen and pencile , both of them can write are ok. and also somebody perfer to have some beautiful pens and penciles , they do not mind what style of the pencile case, or maybe they do not need a pencile case. And some people like both of them.So I think that if they provide both of the products,it is better, because it can identify the three types people , the demand will increas, and if they have a good design of their finished products are much better, also if they adopt low price and increase sales to make profit go up, the profit will increase.