Guest guest Posted February 17, 2003 Report Share Posted February 17, 2003 there is a formula somewhere in the toiletries library for figuring your " true cost " as i call it - that means including a margin for the cost of your labor. it is basically figuring the costs of your material and packaging, every single element, then multipling that by 150%. (1.5 times). (i think it was really 140% for materials and 150% for packaging). you need to do this in case you ever (knock wood) have to hire someone to help you, and your basic cost suddenly goes up. i mark the whole thing up 150% for my " true cost " . then i double that for my " ideal " wholesale price. then double that again to make sure the wholeseller will be able to sell at that retail price. the key as someone else said is working backwards from what you think you or the wholesale client can get for a retail price for the product. you have to assume the wholesale client will want to double her cost, i do retail also and you have got to at least start at double, otherwise there is really no point. you may have to adjust the wholesale price downward till you get to a fairly reasonable retail price. i sit there and go, ok how about 1.5 times instead of double, or how about 1.7 times. i make a whole table figuring all the different possible multiples for the whole range of items so I can keep some consistency across the range, and hopefully come up with different price points for similar items. some items there is no problem, i can charge even more than double for the wholesale price. but i do a lot of little sets, these are always a problem cause i am still paying too much for some of my little components (scoops, bags, jars etc). for these i justify not getting double for my wholesale price by lowering my 150% markup on some of the components - because following my formula, if i am paying 1.50 for a little pouch that holds the set together, i would be figuring that at 2.25 for my true cost and then doubling that for the wholesale price to 4.50 just for the pouch. i can't do that, so i just figure the pouch at 2.00 for the wholesale price, as long as i make a proper profit on the contents of the pouch. sorry to be so long-winded, wld be interested in what anyone else thinks.. Martha Gandley Oasis Wellness Inc http://www.oasis-massage.com http://www.montaukweddings.com _________________________________________________________________ STOP MORE SPAM with the new MSN 8 and get 2 months FREE* http://join.msn.com/?page=features/junkmail Quote Link to comment Share on other sites More sharing options...
Guest guest Posted November 21, 2004 Report Share Posted November 21, 2004 Hi Carol, I would suggest you contact the Illinois Dept. of Revenue and also the state web site regarding registering a business and sales tax information for Illinois. I'm sure you would need to register, but each state is different so it's hard to say for sure. Also, it's my understanding that you, the manufacturer, set the wholesale pricing and terms of such. So you need to determine what your costs are to make each bar, and how much you'd be willing to wholesale them for. I would also suggest a contract clearly stating the terms, etc... to avoid any problems down the road. Congrats on your first show! Mrs. Traci Knoppe http://rosebudcottagesoaps.com Now Open! http://soapmaking.meetup.com/78/ Our next St Louis Soapmakers MeetUp is Saturday, December 18th from 2-4pm Quote Link to comment Share on other sites More sharing options...
Guest guest Posted November 22, 2004 Report Share Posted November 22, 2004 In a message dated 11/22/2004 1:57:41 PM Central Standard Time, hammonds@... writes: I just file on my normal federal and state taxes or do I have to file seperate tax forms as a business? So many questions. Sorry. Hi Carol, Its Rose again. I have an accountant who takes care of everything. That's one of the reasons I'm thinking of dropping. I pay out so much money, there really isn't any profit. You may be a better marketer than I am. :-) Rose Quote Link to comment Share on other sites More sharing options...
Guest guest Posted November 22, 2004 Report Share Posted November 22, 2004 Thank you for your help. I did register with the state via their website (dept of revenue). Do you know if I have to register at a county or city level? And if I'm just doing a very small amount of business wholesale, can I just file on my normal federal and state taxes or do I have to file seperate tax forms as a business? So many questions. Sorry. carol Quote Link to comment Share on other sites More sharing options...
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