Calculating Costs

[Guest guest]

Hey Anita,

 

I think I can't comment much on the below cause I believe we're talking

about two different animals .. you mention " making " it and packaging it,

which might mean you are talking about cosmetics and/or soaps.

 

But one thing is a big fer'shur .. if we try to apply the below rules to

single source essential oils .. we will sit on them for a long time.

 

And that's OK if what we are doing is an expensive hobby or something we

run out of the home. But it can't be that way when there are fixed

costs coming down weekly. Then, turning a single dollar over as many

times as possible is the goal .. making 25% by turning it over one time

a month sucks .. making 8-10% (if we can) turning it over 2-3 times in a

month is a more realistic expectation .. and allows those weekly fixed

costs to be covered .. employees wanna get paid. ;-)

 

For a fact there are some wholesale essential oils around that have no

more than 25-30% TOTAL tacked on them from the still through a couple of

middle folks. Rose Otto will have 10% or less .. for wholesale. So it

really is important to deal volume .. and OFTEN.

 

The folks with the lowest profit margin coupled with the largest volume

will make the most overall profit in a 365 day period .. but they gotta

be ready to put in a lotta effort .. its a 7 day a week job. Butch

 

> 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?