Re: question about pricing

January 2, 2002

At 10:46 AM 1/2/02 +0000, you wrote:

>I mean, I have all of my materials/packaging/shipping

>costs figured out, but am having a bit of difficulty figuring out the

>other stuff. Do most of you just set a price and hope it covers the

>cost, or is there an actual formula...

the way we do it... and that's going to be fine tuned with the new year

after I see all of last year's financials...

we figure the cost of all the 'hidden' goodies... packaging,

payroll, packing materials, computer maintenance, payroll expenses and

payroll, and the fees for the website, etc, " professional fees " ..lawyer

and accountant...all the 'costs of doing business " that are not " cost of

goods " ...

I add a fixed %age to the COST of an item, and use that 'adjusted cost' as

my factor in figuring prices. That way, if I put an item on sale, or if

someone has a big discount coming, I KNOW I am covering all my costs,

because the 'hidden costs' are built in before I do anything else.

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