Cost Analysis and the Value Creation Processes to Increase Opportunity and Potential of Yan Lipao Handicrafts

Abstract

This qualitative research aims to analyze costs and value creation processes of Yan Lipao handicrafts. There were Informants as follows (a) five artisans in the Nakien Community, (b) members of a retailer group of Small and Micro Community Enterprise (purposely selected), and (c) four experts in culture and community marketing. Instruments were a structured-interview protocol, a focus group interview, and an in-depth interview.  The cost data analysis method uses a content analysis process and synthesizes the data based on the framework of this study. The results indicated that the cost of producing large one consisted of Yan Lipao raw material 200 baht, basketry labor 10,125 baht, production cost (electricity, basket finisher, and depreciation expenses) 130 baht. Total cost before decoration 10,455 baht. The cost of a silver-niello decorated bag handle was 2,636 baht, and the cost for a non-silver-niello-decorated bag handle was 1,436 baht. The marketing cost for product distribution was 120 baht. The cost of Yan Lipao bag 12,011 baht for a non-silver-niello-decorated, and 13,211 baht for a non-silver-niello-decorated one. The processes of value creation ranged from marketing research, modification of style by a designer, design innovation, to release of a new product.