So you want to figure how to price your item? First, you must look at ALL the expenses involved. From the 2 drops of candle scent you need for one candle to the boxes you’ll be putting your chocolates in, every little detail is important when figuring your prices. This may seem tedious, but it is very important.
Below is a sheet that will help you figure both your wholesale and retail prices. Now, you don’t have to go with 2 times your wholesale to get your retail….you can use 1 or 4! Just be sure that your items will sell at that price…and that you are getting PAID enough for your time that your business isn’t just a hobby.
Pricing One Item
- Cost of Your Materials (EVERYTHING it took to make one) __________
- Time it takes you to make one item __________
- Time x Your Hourly Rate = Labor Cost __________
- Overhead __________
- Materials + Labor + Overhead = WHOLESALE PRICE _________
- Wholesale X 2 = RETAIL PRICE _________
Now that you’ve figured out your prices, how do you feel? Are you pleased? Are you upset? Have you compared “your prices” with that of a competitor to see where you stand? Can you add a little more to your “hourly rate”? Or can you find more affordable materials to use? Pricing will always require a little tweeking!
If your business is JUST going to be your hobby…your prices simply covering your expenses work. If you are doing this for more than just a hobby, make sure that you are getting paid enough for your time!
Tags: figure retail price, figure retial pricing, figure wholesale price, figure wholesale pricing, figuring item pricing, how to figure wholesale pricing, pricing your item, wholesale pricing
June 23rd, 2010 at 4:14 am
Hello,
My Q:
I sell on my wholesale prices online. Not double them. I think I will not have any sales if I double the prices. Is it a problem? How to get more sales?
June 23rd, 2010 at 4:16 am
So, you are using wholesale prices to sell your retail items and you’re worried that if you double the price, you won’t have any buyers?