Calculating Costs ** Is there such a thing?

[Guest guest]

Butch wrote, amongst other things, :-)

 

Knowing all that is nice .. but doesn't give me a lot of flexibility in

establishing prices because there's something else called competition.

I gotta bounce my pricing/profit against rent, insurance, utilities and

maintenance, supplies, and labor costs of my employees .. and then hope

there is something left over after all those deductions.

 

 

Thanks Butch !

I have a lot to think about now, LOL

Carol

 

 

 

 

 

 

 

[Guest guest]

Thanks Butch, cute joke on the end, lol

 

I figured out the cost of one of my products, for arguments sake lets say its

$5, for me to make it and package it.

I have someone who owns a small shop, and wants to buy from me wholesale. What

kind of mark-up do i do?

 

Anyone have any suggestions?

 

Signed blonde and confused,

LOL

 

 

 

 

[Guest guest]

Double your cost for wholesale...double that for you to sell it yourself. For

the cost you used ($5), then double that..$10 wholesale...doubled to $20 for

your retail cost. That is what I " try " to do...though Sometimes, depending on

the market, it can't be done. But just remember that the person buying from you

wholesale, will probably double their cost( what they paid you for it) and sell

for that price. Is this clear, or clear as mud? HTH

Anita in TX

for arguments sake lets say its $5, for me to make it and package it.

I have someone who owns a small shop, and wants to buy from me wholesale. What

kind of mark-up do i do?

 

Anyone have any suggestions?

 

 

 

 

[Guest guest]

This is great thanks...

 

I have a meeting scheduled for thursday morning, and I need to be prepared, It

was a last minute thing..LOL

 

Carol

-

Anita Reeves

Monday, March 08, 2004 5:25 PM

Re: Calculating Costs ** Is there such a thing?

 

 

Double your cost for wholesale...double that for you to sell it yourself. For

the cost you used ($5), then double that..$10 wholesale...doubled to $20 for

your retail cost. That is what I " try " to do...though Sometimes, depending on

the market, it can't be done. But just remember that the person buying from you

wholesale, will probably double their cost( what they paid you for it) and sell

for that price. Is this clear, or clear as mud? HTH

Anita in TX

for arguments sake lets say its $5, for me to make it and package it.

I have someone who owns a small shop, and wants to buy from me wholesale.

What kind of mark-up do i do?

 

Anyone have any suggestions?

 

 

 

[Guest guest]

Yo Carol,

 

> > Butch wrote, amongst other things, :-)

> >

> > Knowing all that is nice .. but doesn't give me a lot of flexibility in

> > establishing prices because there's something else called competition.

> > I gotta bounce my pricing/profit against rent, insurance, utilities and

> > maintenance, supplies, and labor costs of my employees .. and then hope

> > there is something left over after all those deductions.

>

> Thanks Butch !

> I have a lot to think about now, LOL

> Carol

 

Welcome fer'shur .. but lemme give you two more tips. IF you are going

to pay attention to that monster called competition .. you are gonna

find, from time to time, some folks selling at a price you should just

disregard .. they're selling for less than the cost of production.

 

If you want to be in the fair market range you must sell as small a size

as you can .. the larger the size .. the lower the profit margin. Its

real hard to make 2% on a kilo .. or 4% on a pound .. and such a low

profit margin will wear you out. You can do better on 5 ml - 10 ml.

 

If you want to make more than 2% - 4% on pounds and kilos .. plan on

sinking a HELLUVA LOTTA MONEY into oils .. meaning .. buy the barrel so

you can get a decent price per pound.

 

Its possible to turn over 20 K a month in oils and still make less than

one could make working full time in McDonalds .. I BS you not. It all

depends on the overhead. Sometimes folks can make more profit operating

on a very small scale .. more than they can if they grow large.

 

There are no magic answers in this industry. Its just a big three ring

circus with lots of wild beasts ready to pounce on the unwary .. and the

main attraction is the clowns. ;-)

 

Y'all keep smiling. :-) Butch http://www.AV-AT.com

 

PS: Reminds me of the old farmer who was telling his accountant that he

lost $10,000 operating last year. His accountant told him he couldn't

stay in the business long at that rate. Old farmer said, " Heck son, I

got a good 5 years left .. a fool I'm not, got me $50,000 stashed. "

[Guest guest]

Carol,

 

Dan Thompson (search " Thompson Studios " ) has several spreadsheets for

people in the soap & craft industry. I haven't personally used his

cost calculator, but it's only $10! He offers the recipe converter

free & has other programs available. One that I remember is a craft

show cost/profit tracker. Hope this will be of some help to you.

 

Hugs,

Pat

 

A few years ago, I did a calculator in Excel for finding the right

size mold for your recipe or the right size recipe for your mold,

including the dimensions of each bar. It was fun to make and a big

help to me because I was using cardboard boxes for molds! (still

do) I lost the calculator when our computer crashed and just haven't

sat down to do it again.

[Guest guest]

This is great...I will check it out

Thanks.

Carol

-

Pat

Tuesday, March 09, 2004 8:04 AM

Re: Calculating Costs ** Is there such a thing?

 

 

Carol,

 

Dan Thompson (search " Thompson Studios " ) has several spreadsheets for

people in the soap & craft industry. I haven't personally used his

cost calculator, but it's only $10! He offers the recipe converter

free & has other programs available. One that I remember is a craft

show cost/profit tracker. Hope this will be of some help to you.

 

Hugs,

Pat

 

A few years ago, I did a calculator in Excel for finding the right

size mold for your recipe or the right size recipe for your mold,

including the dimensions of each bar. It was fun to make and a big

help to me because I was using cardboard boxes for molds! (still

do) I lost the calculator when our computer crashed and just haven't

sat down to do it again.

 

 

 

Step By Step Instructions On Making Rose Petal Preserves:

http://www.av-at.com/stuff/rosejam.html

 

To adjust your group settings (i.e. go no mail) see the following link:

/join

 

 

[Guest guest]

Hi, I just had a look and this program is amazing. Exactly what I need.

 

Thanks Again.

Carol

-

Pat

Tuesday, March 09, 2004 8:04 AM

Re: Calculating Costs ** Is there such a thing?

 

 

Carol,

 

Dan Thompson (search " Thompson Studios " ) has several spreadsheets for

people in the soap & craft industry. I haven't personally used his

cost calculator, but it's only $10! He offers the recipe converter

free & has other programs available. One that I remember is a craft

show cost/profit tracker. Hope this will be of some help to you.

 

Hugs,

Pat

 

A few years ago, I did a calculator in Excel for finding the right

size mold for your recipe or the right size recipe for your mold,

including the dimensions of each bar. It was fun to make and a big

help to me because I was using cardboard boxes for molds! (still

do) I lost the calculator when our computer crashed and just haven't

sat down to do it again.

 

 

 

Step By Step Instructions On Making Rose Petal Preserves:

http://www.av-at.com/stuff/rosejam.html

 

To adjust your group settings (i.e. go no mail) see the following link:

/join