When I first started my business I would speak to manufacturers, marketers, and other potential business partners who would constantly speak in acronyms. I would nod, pretend I knew what they were talking about, and then sneak back to my desk and google each term so I could avoid feeling like an amateur next time we spoke. I bet I’m not alone in that.
It will happen a lot when you’re starting out. I did the same thing when I lied about my bartending experience to get hired.
“A Harvey Wallbanger, Sex on the Beach, and a Mind Eraser…Sure, no problem let me just check on the price for those.” As I saunter over to the register where I’ve hidden my phone and open my cocktails app to learn if they were introducing themselves, hitting on me or asking for a drink. Don’t be ashamed if you don’t know. It’s the same as a language. Immerse yourself, have the humility to learn and soon you’ll be teaching others the three letter lingo.
My goal is to help though, not just share stories, so here’s your first one:
BOM – Bill of Materials
- A list of all the materials, or pieces that make up a product.
- If you are selling a bicycle your BOM may include: the two wheels, the handlebar, the frame, the chain, the seat, the grips for the handlebars, the horn attached to the front, and all screws and bolts required to assemble. (I recognize I may have left things out I just ride bikes I don’t make them.)
- Each of these items has a cost and the BOM breaks each price down by piece.
- At my company we have a RING, in a NEOPRENE BAG, inside a POLY Bag.
- The BOM would be inclusive of those three things because it is all the pieces that make up the end-product that is sent to customers.