New To Pricing - What Do I Need To Know?

Decorating By bluedaisies Updated 3 Aug 2011 , 8:44pm by bluedaisies

bluedaisies Posted 3 Aug 2011 , 6:39pm
post #1 of 5

I've just received my first paid opportunity where they will want to see my pricing info.
So - I need to get my prices hammered out. I know I need to make a list of what everything costs for me to buy it first.
Is there anything in particular I need to know or do??

Thanks for your advice!

4 replies
kelleym Posted 3 Aug 2011 , 7:54pm
post #2 of 5

See the link in my signature, and good luck! thumbs_up.gif

jason_kraft Posted 3 Aug 2011 , 8:09pm
post #3 of 5

I use this formula:

Price = ingredient cost + labor cost (which is # of hours needed to complete the order * your hourly wage) + per-order overhead cost (your total annual overhead including insurance, license fees, rent, etc. divided by estimated # of orders per year) + an additional 20-30% profit margin.

bluedaisies Posted 3 Aug 2011 , 8:32pm
post #4 of 5
Quote:
Originally Posted by kelleym

See the link in my signature, and good luck! thumbs_up.gif




Very useful info at that link - thank you!!

bluedaisies Posted 3 Aug 2011 , 8:44pm
post #5 of 5
Quote:
Originally Posted by jason_kraft

I use this formula:

Price = ingredient cost + labor cost (which is # of hours needed to complete the order * your hourly wage) + per-order overhead cost (your total annual overhead including insurance, license fees, rent, etc. divided by estimated # of orders per year) + an additional 20-30% profit margin.




Thanks! I've got some homework to do! icon_smile.gif

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