Ms. Shyam Badan Shrestha is the Managing Director of Nepal
Knotcraft Centre (NKC). NKC is a pioneer handicraft center founded
22 years ago to enhance employment and self-dependency for socially
and economically deprived women in urban areas of Nepal . The
Centre, which started with just a handful of women producing
macramι goods, has now extended employment opportunities to
hundreds of women in both rural and urban Nepal , and has expanded
its product range to include ethnic dolls and gift items made from
corn husks, recycled saw dust, and rice paper. NKC's latest
brand product, Fiber Weave Nepal, promotes Nepal 's rich
natural diversity while offering rural women employment
opportunities that make them economically independent. NKC exports
its products primarily to Japan and the USA .
BizMantra, the SME Toolkit in Nepal , holds promotional
workshops at regular intervals to familiarize Nepalese SMEs with
the Nepalese version of the Toolkit ( www.bizmantra.org ) and to
help them improve their business processes. Ms. Shrestha
participated in a BizMantra Promotional Workshop organized in
association with Women Entrepreneurs Association of Nepal
Ms. Shyam Badan Shrestha, sharing her
experience at a recent BizMantra Seminar
After the workshop, Ms. Shrestha visited the BizMantra Web site
(www.bizmantra.org ). She
went through the accounting and marketing sections of the Toolkit
and was curious to learn whether her pricing strategy was
appropriate and her accounting system effective.
Ms. Shrestha subsequently came to BizMantra for consultancy. She
confessed that though she is one of the leading entrepreneurs in
Nepal , her knowledge of accounting is weak. Mr. Sailesh Man
Shrestha , a BizMantra consultant, reviewed the price of her
products and found that her pricing was not optimal.
Ms. Shrestha and her team had calculated the cost of the
products by including the cost of raw materials and wages. They
then priced all the products with a 40% markup. However, they did
not value for her time, R&D cost, and other miscellaneous
Mr. Shrestha explained that NKC needed to customize its pricing
for each particular product line, and that in fact the company had
under-priced some of its products.
With BizMantra's assistance, Ms. Shrestha considered all
direct and indirect expenses (cost of raw materials, wages, R&D
cost and other miscellaneous expenses) in calculating the full cost
of each product. It was suggested that she lower the price of
products that have competitive markets and those that have been in
stock for a long time, and that she increase the price of unique
and exclusive products by almost 300%. In the beginning, she was
skeptical about increasing prices, but she adopted the new pricing
policy as suggested by BizMantra. The r esult: growth in revenue,
higher profits and no loss in sales volume.
BizMantra is now assisting NKC with overall management of the
organization. Some of their recent achievements include:
BizMantra helped NKC to launch its showroom of fiber
products in Kupondole, Patan.
BizMantra promoted NKC's products in two
A fair organized by the Federation of Nepalese Cottage
and Small Industries (FNCSI) from Dec 9th 12th, 2005 at Bhrikuti
Mandap. In this fair NKC made total sales of Rs. 2770.
A fair at Patan which was held from Dec 16th 19th,
2005 . Total revenue of Rs. 5499 was generated in this fair.
BizMantra designed and developed a website for NKC ( www.nepalknotcraftcentre.com.np
), which they are updating regularly.
BizMantra guided NKC regarding how best to promote
itself in the 7th Handicraft Trade Fair, which was held from 23rd
Feb, 2006 27th Feb, 2006 . NKC generated total revenue of Rs.
Ms. Shrestha explains, "BizMantra is a huge support for
SMEs in streamlining management related issues."
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