| | Re: Anyone heard of Whippy Cake?
List of expenses that many fail to think about:
-web site hosting
-yearly domain costs
-fuel costs if you drive to and from the post office to drop off packages
-wear and tear on your vehicle (even if it is a very small drive it adds up)
-cell phone minutes even if you have unlimited minutes
the square footage area of the space you use to do business and store supplies. You are paying for using up space in your home or in another building. Even if you don't charge yourself for rent you should figure that in as your business does take up space in your home. (something our accountant told us about)
-figure your electricity costs in there too
-any instructions or tuts purchased
-wear and tear on scissors/glue gun/wood burner/etc
-actual product supplies
-and the one that most people leave out is figuring your TIME that goes into making these products. Your time is valuable. Every little thing counts as it can add up quickly. Many of us fail to see that.
That is why I cringe when I see a basic bow sell for $3. There is no way you can be making a profit to help pay for all of your expenses.
I don't think the business woman in the link is ripping people off. She is making a profit. Ripping people off is if she charged $300 for it and believe it or not....there are people that will actually buy it because to them if it cost that much then psychologically they feel they are wearing something of high quality and it makes them feel good. To each their own I guess....I personally would not pay that amount for them even if they were made by a high quality designer. This is why you see so many people operating two businesses. One for the locals in their area and one online aiming their advertising in larger markets.