Enhancing Community Products through Production Cost Analysis and Pricing of Batik Fabric Bags

Abstract

Background and Objectives: Economic inequality in Thailand is a structural issue that directly impacts social stability and security. Farmers represent the lowest average income group, relying heavily on a single source of primary income. Promoting supplementary occupations to generate income narrows the economic inequality gap. Leveraging cultural capital and local wisdom to add value to products elevates the community economy. For example, the Women’s Development Group of Yan Din Daeng Subdistrict Municipality, Phra Saeng District, Surat Thani Province, is a collective of farmers aiming to generate supplementary income by producing and selling Batik cloth bags. However, the lack of cost analysis, selling price determination, and product development poses limitations on generating community income. This research aims to:1) study the context and analyze the production process of Batik cloth bags of the Women’s Development Group of Yan Din Daeng Subdistrict Municipality, Phra Saeng District, Surat Thani Province; 2) analyze the production cost data of the Batik cloth bags; and 3)determine the selling price for the Batik cloth bag products.
Methods: This study employed a mixed-methods research design combining qualitative and quantitative approaches, utilizing participatory action   research. Data collection methods included in-depth interviews, focus group discussions, and participant observation to examine the production process, cost structure, and price determination. The target population comprised 80 members of the Women’s Development Group of Yan Din Daeng Subdistrict Municipality. Data were collected using purposive sampling from 30 group members directly involved in Batik bag production, 10 experts in cost accounting, marketing, and product development.
Results: The group members were female farmers. The production process of Batik fabric bags consisted of four steps: pattern making, cutting, sewing, and decorating according to product types. Cost analysis was conducted using both full costing and variable costing methods. Developing an appropriate brand and packaging reduced product degradation issues and added value to the products. The decision to enhance the products was based on comparing incremental revenues with incremental costs, which revealed an increase in profit, thereby effectively upgrading the community product.
Application of this study: The findings of this research can serve as a practical guideline for production cost analysis, pricing strategy, production planning, and marketing management through cost accounting data management. This approach facilitates the development and upgrading of community products, strengthening the grassroots economy through participatory engagement.
Conclusions: Analyzing costs based on actual production processes ensures that the cost structure aligns accurately with the products. Determining selling prices that correctly reflect true costs supports product enhancement and drives long-term sustainability for community products.