What to charge or how to figure it out please

[tpags1971]

Hello All
I have an order for a few items most I know what I charge but I am doing a new item and I am not sure what to charge It is a Hershey purse favor With no chocolate in it they have the chocolate I will be designing ,printing ,cutting, assembly also will include foil for the bar I am including a couple images to show If anyone has any help on pricing would love it
Ps It will have a silver chain not white
Thanks
Traci

 

[latitude]

I don't do anything to sell but I am sure members that do will see this and give you their input,
Nice job

 

[wishfulthinker]

Hi Traci, @tpags1971 - obviously you will be doing it for a profit and therein lies the conundrum. How much profit do you want to make. You need to cost up the bits used to make the purses, i.e. beads, sticker, paper, ink, electricity (we all forget that). Then, work out how long it is taking to make each item up, then work outusing an hourly rate (divide that by however long it takes). That will give you an actual cost, then add on a % for your profit mark up.
Simples ..... lol
Hope it helps.

 

[nikki123]

Some people use the formulas:

Materials x 3 = cost
or
Materials + time = cost
(Time = at least minimum wage per hour for your state)
or
Materials + time + 20% for overhead = cost

Some people take it further:
Cost x 2 = wholesale price
Wholesale price x 2 = retail price

Good luck on figuring out your pricing. I always tend to undercharge.

 

[jenel]

I never figure in my time at minimum wage. Sometimes it takes me a couple of hours to design a cupcake wrapper and if I was to charge for my time at minimum wage in the state of Oregon which is $13.50 an hour.... I could not sell my cupcake wrappers for $27 a dozen and then add on the cost of materials. So it really depends on what the item is.....

When I price things, I do cost x 3 - retail

 

[wishfulthinker]

Some people use the formulas:

Materials x 3 = cost
or
Materials + time = cost
(Time = at least minimum wage per hour for your state)
or
Materials + time + 20% for overhead = cost

Some people take it further:
Cost x 2 = wholesale price
Wholesale price x 2 = retail price

Good luck on figuring out your pricing. I always tend to undercharge.

So me ...... but it doesn't always work. People still buy the dearer ones for some unknown reason, perhaps think we use cheaper alternatives when the opposite is true. I don't do quantity discounts as some people do simply because I think everyone should be treated the same, 50 or 500!

Another way could be just to research what others are charging and then either slightly undercut (if costs permit) or charge the same.

 

[tpags1971]

Thank you all so much I always under charge myself