Entrepreneurial Small Business 4th Edition by Jerome Katz ,Richard Green

Exercise 8

You've heard about Paul Scheiter and his firm, HedgehogLeatherworks.com. One of his customers, Ian Atkinson, is a big fan and also a leatherworker, and provided his analysis of the pricing behind one the Hedgehog's most popular sheaths. See the video at www.youtube.com/ watch v=NYqmSzx_LRs. Based on this example, explain in your own words how elements like design and quality of construction make a product worth more than just the cost of raw materials and an hourly wage for leatherworking. The first 14 minutes give you the pricing discussion. The last 7 minutes show you what you would have to do to make a similar sheath of your own.