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      CommentAuthorandee
    • CommentTimeJan 10th 2014
      0 points
    I'm starting this discussion for Lisa who asked the following question on our Facebook page. Any help you give would be much appreciated!

    Lisa wrote, I was thinking of starting to make my own products with help of MMS and I was not sure how to go about pricing items? If anyone has any suggestions I am open to ALL. I was mainly going towards lip balms / lip gloss for now, and if all goes well to branch off to other things. How did you all get started in your selling?
  1.   0 points
    I started selling to family and friends. I should let you know when I say family, between biological and my in-laws, I have an unusally large family. Hubby and I are both the youngest of 8 children, Our oldest Niece is 43 and the youngest great, great nephew is 4. In between those ages is 70 more nieces and nephews. Family alone has kept me busy enough to grow in other directions. Farmers markets, confidence in your product, and referrals are the best form of selling for me.

    Pricing... this one has many answers. My personal Retail formula is M + (Lx2.5)/X (#items made). Translates to Materials + (Labor rate x 2.5%). Your labor rate is up to you to set. The 2.5% breaks down to cover your labor, overhead, and the 1/2 percent is your profit. That part could actually vary from 20-80 percent if you so choose. Example:
    M=10
    L = 15 per hour
    X= 12
    [10 +(15x2.5)}/12
    (10 + 37.5)/12
    47.50 / 12
    3.95 each.

    Wholesale is a whole other Monster.

    Clear as mud right?
  2.   1 point
    I would recommend a book titled "Craft Inc. by Meg Mateo Ilasco Revised Edition. Read chapter 4 on pricing. I bought my book from Wal-Mart.com or you might want to go to the library to check this out. The only thing about borrowing from the library you can't highlight the book. A good read. Very informative book. Another book that goes with this is titled "Craft Inc. Business Planner by Meg Mateo Ilasco. You can also find these book on amazon too. Good luck. I hope this helps out.