Wendy Rosen on sat 8 may 99
There are actually two pricing strategies in "Crafting As A Business"
1) Labor + Materials + %Profit
2) What The Market Will Bare
The hardest thing for people to comprehend is the profit portion. Aside
from your own cost of labor you will
need quite a bit of money to "finance and grow your business"... This
number is often higher than what you
will pay yourself in salary... but it is the "cushion" that keeps your cash
flowing and the fuel that keeps your
business growing. After 18 years we are still fueling our business to an
extent much larger than my salary.
It seems that the bigger you are... the bigger the risks and dips in cash flow.
Good Luck,
Wendy Rosen
Wendy Rosen
The Rosen Group
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Joy Holdread on sun 9 may 99
> ----------------------------Original message----------------------------
> There are actually two pricing strategies in "Crafting As A Business"
>
> 1) Labor + Materials + %Profit
> 2) What The Market Will Bare
>
> The hardest thing for people to comprehend is the profit portion. Aside
> from your own cost of labor you will
> need quite a bit of money to "finance and grow your business"... This
> number is often higher than what you
> will pay yourself in salary... but it is the "cushion" that keeps your cash
> flowing and the fuel that keeps your
> business growing. After 18 years we are still fueling our business to an
> extent much larger than my salary.
> It seems that the bigger you are... the bigger the risks and dips in cash
> flow.
> Good Luck,
> Wendy Rosen
What about
Labor + materials + overhead + profit = wholesale price.
Labor remember the labor to market the works & maintain the studio.
Materials remember the experimental materials or development materials.
Overhead remember admin. time as well as office & studio costs. This is a
big list.
Profit, remember health insurance & retirement.
What the market will bear., or is it bare? (Help grammar police.) One can
make adjustments several different ways.
Joy in Tucson
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