John Baymore on sat 16 may 98
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(snip)
So whoever sells the mug, 7.00 of it payed for the mug itself and 7.00
payed for the cost of promotion etc. Of
course this is simplistic, but if I sell a mug for my wholesale price at
a craft show, where do i recoup the money for the expenses involved with
doing the show?
(clip)
This is the key issue in pricing for retail vs. wholesale...... the cost of
selling. And it DOES cost. The post from which the above quote is
excerpted is an excellent discussion of this subject. Cuts right to the
chase.
One element that was not clearly stated in the above posting which you
should include in the figuring of both the wholesale price and the retail
price is PROFIT. (Each one should earn a profit too.) Not the hourly
wage you pay yourself to make the pieces or to sell the pieces, but
something figured in for your risk taking for running the business, and for
your overall investment of yourself. It might not be a large percentage,
but it should be figured in there.
PROFIT is not synonomous with WAGES in this application. Wages pay you for
your time to make the stuff. Wages pay for you sitting there in your
retail booth.
Great post=21
Best,
......................john
John Baymore
River Bend Pottery
22 Riverbend Way
Wilton, NH 03086 USA
603-654-2752
JBaymore=40Compuserve.com
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