Thread: Pricing
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Old 10-08-2007, 02:50 PM   #8 (permalink)
robert
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Default Re: Pricing

Quote:
Originally Posted by robert View Post
Cost of ingredients / total treats made = cost per treat

Cost of labels / number of labels = cost per label

Cost of bags / number of bags = cost per empty bag

Cost per empty bag + cost per label + (cost per treat x amount of treats per bag) = cost of loaded bag

Since you are manufacturing the treats yourself, I would suggest AT LEAST 300% markup on treats:

Cost of loaded bag x 4 = selling price

$20 / 219 = $0.19 per treat (average of small and big)

$10 / 200 = $0.05 (per label)

$25.41 / 100 = $0.26 (per empty bag)

$0.26 + $0.05 + ($0.19 x 10 big treats per bag) = $2.21 cost of bag of 10 large treats

$2.21 x 4 = 8.84 selling price.

Raise the selling price to $8.99 (price points with 99 or 95 are best for online orders. At bazaars you might prices ending in 25, 50, 75, or 00)

So with those numbers you would be making over $6 per bag of large treats. Is that enough?

Do you see how this is working? You can use these numbers if you want, they aren't perfectly accurate though. But it gives you a rough idea.
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