THE ANALYSIS OF PRODUCT COSTS WICKER WORK BIRDCAGE IN NONGZINE, KLONGHAE DISTRICT, SONGKHLA PROVINCE

Abstract

               This research aimed to analyze the products’ cost and financial internal rate of return (FIRR), an OTOP product of Khlonghae’s Nongzine community, Hatyai, Songkhla. The participants were the community’s members of a hundred and thirty families, permanently working as wicker workers accredited by the One Tambol One Product (OTOP) project. Field-study, interviews, and group discussion were conducted to collect data and confirm the stored data available. Summarized numerical data, from the interviews, then used for analysis of the products’ cost and FIRR. The analysis was carried out on cost per unit, break even analysis, real monthly profit per model of the products and net present value (NPV), benefit-cost ratio (B/C ratio), and sensitivity analysis of the production.
              Main findings of the study were: (1) six different models of the product and their calculated cost per unit were as follows: 1) Can model (70 bamboo sticks: 240.86 Baht); 2) Binlah model (90 bamboo sticks: 275.36 Baht); 3) Glazed water jar model (70 bamboo sticks: 238.86 Baht); 4) Bell model (100 bamboo sticks: 288.12 Baht); 5) Mangrove apple model (50 bamboo sticks: 198.51 Baht); and 6) Ayutthaya model (46 bamboo sticks: 194.71 Baht). Real monthly profits (in Baht) per model of the products are: 1) 15,058.08 (Can model); 2) 16,174.08 (Binlah model); 3) 11,602.08 (Glazed water jar model); 4) 10,170.24 (Bell model); 5) 10,907.28 (Mangrove apple model); and 6) 11,180.88 (Ayutthaya model).Instead of being used for the analysis of the products’ break-even point, helping community plan its required production profits improvement. The given data could be a guide in particular for those interested people in producing wickerwork birdcages as their part time jobs. Also some government officials or any interested people could bring information to other uses. (2)The analysis of NPV and B/C ratio revealed that the first and second models’ production (Can model and Binlah model) provided the highest returns. About sensitivity analysis of the cost determined that when the products’ cost were five to ten percent lowere among the six models of the products, the first and the second models’ production (Can model and Binlah model) provided the highest returns. In whatever direction or situation changed, the first and the second models’ production still made the wicker workers’ best option, providing the highest returns. Once the products’ price and cost are stable, the new market expansion of the products, not just provides the wicker workers a possibility of defining the price based on cost themselves, but getting more profits generated by various forms of production and sales. Not only being an entertaining utensil product; the wickerwork birdcages are unique, valuable-local wisdom’s product especially for those customers who like art with refined and intentional attentiveness.