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Need help in pricing my beeswax cosmetics

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annette:
Can anyone help me to figure out how to price my beeswax cosmetics???  I have been making hand creams and various other products using my beeswax. Well after giving away and selling some stuff I have been getting rather large orders now and some people are interested in trying to sell some of my cosmetics.  I do not know how to figure out what kind of markup to charge if someone wants to sell my stuff for me.

Thanks
Annette

DayValleyDahlias:
Hi Annette,

I have been told that when you make a product, you tally up the amount it took you to make it, then double that...of course I am not sure if that includes your time as well...

annette:

--- Quote from: DayValleyDahlias on December 12, 2008, 02:27:29 am ---Hi Annette,

I have been told that when you make a product, you tally up the amount it took you to make it, then double that...of course I am not sure if that includes your time as well...

--- End quote ---

That would make a big difference about the time. Thanks and I am researching elsewhere also to get some answers.

Brian D. Bray:

--- Quote from: annette on December 12, 2008, 12:23:37 pm ---
--- Quote from: DayValleyDahlias on December 12, 2008, 02:27:29 am ---Hi Annette,

I have been told that when you make a product, you tally up the amount it took you to make it, then double that...of course I am not sure if that includes your time as well...

--- End quote ---

That would make a big difference about the time. Thanks and I am researching elsewhere also to get some answers.


--- End quote ---

The time is part of the calculation in such things as fast food when a person is making a large volue of something over and over, that's why McD's can still sell a hamgurger for a buck...total the cost and double it.  But when it comes to more complex, smaller volume products time has to be added in.  The way to do that is time the manufacture of the lot.  Say you were making a batch of 4 dozen bee's wax lip balms:  You'd time the mixing and pouring time as well as the cost of ingredients and containers, divide by the total yield and then double that.  So if the 48 lip balms cost you $5 in ingredients and took a hour to prepare and you decided you time was worth $10 per hour, you'd add the 10+5 to get 15 and then divide by 48 and multiply by 2.  $15/48=.31X2=.62.   Here the price, by custom, would be increased to .69 each.

I hope that helps.  I spent 15 years in restuarant management after I retired from Police work so I've had a bit of experience doing my example.

jsmob:
Hay Annette
 I will be selling my honey at a couple of retail outlets. While talking to the owner about some other products ( I am a rout salesman for a company) he said that his cost would be to high. That he has to get at least 125%. So if an item cost him $3.69 X 1.25 = $4.61 is what he would have to sell it for. From that point he would decide weather he could sell the item or not.
  With that said, I would go to Target, WalMart, and some higher end cosmetic stores. Price the items that are like yours, or near yours. ie Burt's Bees. Figure backwards at what their costs would be, Or maybe even ask. Find out who their vendors are and call them. Find out what they charge whole sell. If you are retailing your product yourself, then charge a competitive price. If you sell out fast your price is to low. If you don't move anything your price is to high. This also will give you an idea if your production costs are high or not.

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