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  • profit and percentage

    sorry me again !!!!!!!!!!!!!!
    I'm just very interested in figures etc sad I know
    I posted a question yesterday about pricing and profit and got some good replies so now I'm asking a similar question but from a different angle
    what sort of percentage of profit would you be looking for when sorting out your pricing ??
    I have no idea what percentage is good
    eg if you sell a card for £1.50 how much of that would be pure profit once you've taken costs etc out of it
    hope you don't mind me asking
    www.sunrisecards.co.uk
    http://www.facebook.com/group.php?gi...5877781?ref=ts
    http://www.facebook.com/pages/sunris...all&ref=search

  • #2
    Hi Sun - you sure have got a thing about pricing haven't you?

    I'm not sure about card making cos I make jewellery but I would imagine they work on the same principal.

    IMO - work our the cost of your materials then multiply by 2 - that gives you 100% profit. Multiply by 3 for 200% profit. etc. This gives you the % profit on your materials only.

    Then you add on the cost of your time. I don't know of a way to factor your time into it and come out with a % profit. Maybe someone else can answer more specifically.

    To be honest, it seems to me that card makers don't factor their time into the selling price of their goods - how can you spend an hour or so making a card then sell it for £1.50? It really is a labour of love and Im very glad I make jewellery!
    Last edited by auntynet; 01-09-2008, 11:17 PM.
    Auntynet

    Step-daughter's website selling hand dyed sock yarns www.knotanotherknitter.com




    ~ * ~ * ~ Of all the things I've ever lost, I miss my mind the most! ~ * ~ * ~

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    • #3
      Good point Auntynet - I for one don't figure my time into my cards. My handbag cards take at least four hours to make. In my 'day job' I get paid roughly £8 an hour - so if I paid myself the same rate, for my time at least I would have to charge £36 a card! Then figuring in my costs for materials etc, my prices would be far too high.

      Pricing cards is a bit of a minefield as it really depends on your customer base and where you're selling etc. Some people are willing to pay more for a handmade card, whereas others would prefer to go to a shop and buy a cheaper bulk-made one. I would suggest doing some market research - take some samples and ask people what they would be prepared to spend on them and then figure out from your costs to make it, what price you're prepared to accept.
      www.corrigancards.com


      A mind is like a parachute........it only functions when open

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      • #4
        Not being a card maker,selling a card for just £1.50 the profit margins must be minimal if anything at all,taking material and labour costs into consideration.
        Last edited by kerching; 02-09-2008, 07:18 AM.

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        • #5
          One of the business links I use suggests the following:

          cost of materials + cost of making X 100 gives cost of wholesale. =W
          (with a profit of 100%)

          To find the retail price W X 100 gives cost of retail.

          I know from experience that this calculation is not always possible as you could end up pricing your cards out of the market. I know take the attitude that my cards are the bread and butter of my sales, in other words I do not make much money from them but they pay the stall rent etc. My sewing and jewellery are priced more realistically as sometimes the jewellery can take less time than a card to produce.

          I think do what you think is right, as pricing is personal to the maker and of course the item, but make sure you do make a profit, otherwise there is no point in making.

          Have you broken down the cost of your cards in detail to double check your pricing? I have a spread sheet that I list every component this way I know what a product is costing, even down to the glue or DS tape.

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          • #6
            Now I know this may be a bit technical ( especially this time in the morning) but going back to my school days and commerce lessons if you make something for say, £1 double the price and sell it for £2 you are adding a 100% mark up to it. If you sell at £2 only £1 is your profit. This means you are not making 100% profit, you are making 50% profit as £1 is 50% of £2. If you sell the same thing for £2.50 although you are adding 150% you are making approx 63% profit.
            As you can see profit and mark-up are not the same thing.
            As the price you can sell cards for is almost pre-determined by the buyers unfortunately it comes more under the category of a 'paying hobby' rather than a big 'monymaking' business if you count your actual making time.
            Sorry if that seems harsh but if what you make is very time-consuming that is the way it works out.
            That is why the people who sell 'bought in' stuff can sell them cheaper than us and still make a good profit, because they don't have to add their time to the price.

            Melanie

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            • #7
              What is this mysterious 'profit' that you all speak of?

              Si.

              Wood Tattoos
              Decorative Pyrography for all Occasions - Author of "Woodburning with Style" (2010) and "Learn to Burn" (2013)
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              • #8
                Originally posted by woodtattoos View Post
                What is this mysterious 'profit' that you all speak of?

                Si.


                Don't worry your pretty little head about it Si, it doesn't apply to people who conduct experiements with expensive technical equipment!
                Auntynet

                Step-daughter's website selling hand dyed sock yarns www.knotanotherknitter.com




                ~ * ~ * ~ Of all the things I've ever lost, I miss my mind the most! ~ * ~ * ~

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                • #9
                  Originally posted by Pagan View Post
                  Good point Auntynet - I for one don't figure my time into my cards. My handbag cards take at least four hours to make. In my 'day job' I get paid roughly £8 an hour - so if I paid myself the same rate, for my time at least I would have to charge £36 a card! Then figuring in my costs for materials etc, my prices would be far too high.

                  Pricing cards is a bit of a minefield as it really depends on your customer base and where you're selling etc. Some people are willing to pay more for a handmade card, whereas others would prefer to go to a shop and buy a cheaper bulk-made one. I would suggest doing some market research - take some samples and ask people what they would be prepared to spend on them and then figure out from your costs to make it, what price you're prepared to accept.
                  £36 a card - gulp - palpitations - is it too late to cancel. Joking aside, I think you could charge a little more for your handbag cards, they are lovely.
                  Carol
                  God helps them that help themselves.

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