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Old 07-05-2008, 03:29's Avatar is offline
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Join Date: Jan 2008
Location: Grand Rapids, MI
Posts: 746
Default Re: a few questions???

First, figure out expenses for that particular product:

Example: Clippie - only lined

3/8 ribbon: Price per yard/8 (36 in. in a yard / 4.5 inches per clippie) =
Clippie: Price per clippie
Hot Glue: number of sticks in the pk. * how many clippies you can make with
one stick =
then Price per pk / number of clippies can be made with whole pk.

Then overhead expenses: hosting, marketing, bow cards. This is harder because hosting (for me, $7) is spread out over the number of items I make in a month. I just estimate it and per a 5 cents per product. Then the cost of bow cards divided by how many you use , say 10 cents a product.

All this is put in and you find the true cost of your product - lets say 75 cents. This is not including your time. You need to determine how much you want to make per hour, and then divide that by how long it takes you. $5 bucks and hour and it takes you 5 minutes, you get paid about 42 cents, bringing the product cost up to $1.17. If you ask $2 per clippie, then you are making a profit of 83 cents.

You also need to factor in the area in which you sell, competitor's pricing and place of sale (boutiques sell things for more than farmer's markets, etc.)

Hope that helps.

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