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Need help in pricing my beeswax cosmetics

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annette:
I appreciate all your help with this. I did decide on something.

The hand cream I make cost me $1.50 for 1oz.

I have been selling this to friends and such for $4.50 (3 times the cost)

I decided that if I sell this product wholesale I will just double my costs to $3.00. I think this is low enough for them to tack on their price and still have an item that is reasonable to sell.

I am just small potatoes right now and do not wish to do anything on a large scale. Just getting some orders here and there is keeping me more than busy enough and hopefully I can at least cover my expenses.

What do you think?

Annette

Brian D. Bray:
If a retail store buys an item for $2.69 the formula for markup is costX1.69=sales price.  So $2.69X1.69=4.55 or $4.59 traditional. 

This sounds more like the formula you want.

There is a difference in purchasing and item adding value added for a sales price and manufacturing an item for sale.  In manufacturing (ie food service) the normal formula is double the cost, if doing value added the formula is costX1.69 for a 40% (of final sale price) markup.

BjornBee:
jsmob,
Your example given is really just the same as a 25% markup. I wish I could find some of those markets willing to only mark up 25%..... :-D

Now I have seen some that want a 125% markup, but that would make your example final price of $8.30 for that wholesale price of 3.69

I think if you find markets that will take 25% markup on your price, you should be kissing their feet everytime you walk in their store.... :-*

Cindi:
Oh Annette, I wish you well.  You have a most beautiful product that you are making, I am very, very impressed with that I have seen.  I wish that I could do the same, but I just am not that one that can take that time like you are, I basically do not have the patience for this kind of stuff.  My hat off to you girl!!!  I think that ensuring that you get totally and perfectly recompensated for your hard work is prime here, you go girl!!  Have that great, most wonderful day, health.  Cindi

annette:
Thanks dear people for all the suggestions. I have had so many offers for my creams and lotion bars and people wanting to sell my stuff for me I am feeling overwhelmed and needing to step back and truly figure out where I want to go with all this. Business doesn't come easy for me as I would just love to give everything away, but of course that is not practical and hubby is watching the receipts.

I seem to just feel good getting smaller orders here and there that I can fulfill in an easier manner. I have a friend in Hawaii who is a wonderful salesman and offered to sell my stuff over there on a bigger scale. I am not sure I feel ready for this, but not ruling it out yet.
I am still formulating different products so I have to see how I want to go with it all, or even at all.

Also if anyone here had a look at my posting of some things I made, well the little bee had to go as well. I downloaded the Haagen Daz bee from the website and made up a cute label using the bee,  but when you read the terms of use on the website, it clearly states "to be used only for personal use". Since I am selling now, I had to come up with a different label. I have a designer friend who helped me and the new label truly makes me very happy. I will still use the little bee label for giving gifts.

I truly appreciate each and every post and how you all made the efforts to enlighten me how business works. I have learned a lot in a very short time.

Take care and thanks once again
Annette

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