How to price your goods

[Aloha-Photography]

Hi

I have decided to start selling the bath bombs that I make and I was wondering when you are working out how much to sell your items for do you factor in postage of the raw ingredients to you and the packaging and bags to give to the customer or do you just write that off?

Thanks
Anna

[scotserve]

You have to factor in ALL your costs or you may end up out of pocket.
That includes stationary, postage in and out packing materials any tools and equipement you have to buy and of course your time before you can work out what the true profit margin is

[seamus]

I find it easier to cost things up on a monthly basis,

add up every outlay in a month, as scotserve says, include stationary, the lot.
Then work out how many bathbombs etc that you can sell in that month and work out the individual retail price of each product, enough to cover costs and give you the profit you want, ie a 50% profit margin for arguments sakes.

for example, say your monthly costs total £500 and you estimate selling 300 bathbombs you would need to sell each bathbomb for £1.67 to cover your £500 costs, if you wanted to add a 50 % mark up on each product you'd need to sell each bathbomb for £2.50

obviously £2.50 per bathbomb is probably too much lol but the principle is the same, work out costs per month, figure out how many bathbombs you're likely to sell and work the price out that way

[Baa]

Considering the costs of the cosmetics safety assessments for ingredients, recipes, storage etc, records, labels, cost of raw ingredients, time etc before you even start selling can send the prices sky rocketing before you even start. With this in mind finding a solid market before starting up I would say is imperative.