Need help in pricing my beeswax cosmetics

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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?


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.

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.... :-*

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

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


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