Incrtalent
Well-Known Member
- Joined
- Jul 25, 2007
- Messages
- 100
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Hey guys. Haven't been around for a while 'cause I've been dealing with ISSUES. So I finally put together a spread sheet for in oder to determine my fixed costs, and I'm a bit glum about it, actually. My husband used the formula he used at work, (manufacturing), which was cost & labor x 1.5 for wholesale x 2 for retail, and here's the situation. I'm afraid I'm pricing myself right out of the market. The soaps actually aren't too bad, (I came in between $4.50 and $7.00 for a 4.5 oz bar, depending on the ingredients), but the lotions? Does ANYONE actually pay $15.00 for an 8 oz bottle of lotion? And the scrubs...well. Most of the 16 oz scrubs came in between 19.00 and 20.00. But the coffee scrub, (I use ground espresso) came it at something obscene...like over $30.00. As I understand it, people actually DO pay $20-ish for scrubs, but still.
I don't know. Is my formula totally messed up? Am I through the roof? And since we are just starting out here, how do I adjust according to what the market will bear and still make a profit at the end of the day? Until we get larger, we can't do much about our costs, (i.e., quantity = price breaks, etc.) Sigh. Somebody throw me a rope. I'm trying to get this all sorted out before the November madness kicks in. Thanks!
I don't know. Is my formula totally messed up? Am I through the roof? And since we are just starting out here, how do I adjust according to what the market will bear and still make a profit at the end of the day? Until we get larger, we can't do much about our costs, (i.e., quantity = price breaks, etc.) Sigh. Somebody throw me a rope. I'm trying to get this all sorted out before the November madness kicks in. Thanks!