Ads

Collapse

Announcement

Collapse
No announcement yet.

what is "cost price"

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • what is "cost price"

    I have a shop wants to sell my prodcuts. They say they generally add on 3% to cost price, and now wants a list of my cost price.

    Dont know what it is, is it the cost of all the materials? the cost of materials and my time? what I would like to sell things for?

    Any help welcomed. laura

  • #2
    Cost price is what you pay for your goods. Never tell anyone except your accountant what your cost price is! If you double up on cost price you get wholesale price, if you double up on that you get retail price. Not as easy as that though! It sounds as if she means she will add 3% on the price you charge her.............her 'cost' price.................you'll just have to haggle a price out that you can both work with. The other alternative is sale or return - you tell her how much to sell them for and she takes a percentage, usually around 40%. This can work when you are starting to try and make a name for yourself...............and can afford to give away 40%!
    Bottom line is, don't tell her any of your costs, it's none of her business, all she needs to know is how much she can sell it for and how much you want!
    peter

    Comment


    • #3
      I was just about to type out a long reply - but basically Beadsage is spot on with his reply.

      Cost price to the shop is what you decide to sell them to her at, i.e, your costs, plus some profit for yourself.

      A lot of people seem to view 'profit' as a dirty word, but lets be honest, if we didn't want to make money out of our crafts, we wouldn't sell them would we!! Mind you, I'm still to make a profit, but I've only been selling since September so i'm not worried yet.

      Claire
      Website; www.midshiresmakers.co.uk
      Facebook Pages: www.facebook.com/weedoncraftmarket
      www.facebook.com/craftshoppingexperience

      Comment


      • #4
        I think beadsage has got it exactly right.
        You must still make a reasonable profit even with a wholesale price of 40% or 50% taken off your retail price. You have to make sure that your prices allow that. You should also be selling everything at the same retail price, whether at a craft fair, from a website, in a gallery or in a shop. Otherwise you are undercutting each other and that is not good.
        If she is actually going to sell your jewellery for only a 3% mark-up that is a very good deal. Most shops start at 30% and most want 40%+ . After all they have to pay rent, wages and general expenses for their shop.

        Melanie

        Comment


        • #5
          To be honest I have successfully avoided selling my stuff to shops so far because I have been unable to determine how to sell my stuff wholesale. I feel like it could be more work for less profit. I have since been approached on the idea of sale or return but again Im not sure about giving the shop a slice of my profit which I might add is only pocket money profit not the type where hubby could put in for early retirement profit!
          Something Shiny Something Sparkly
          Handmade Tiaras & Jewellery by Diana @ dizaTIARAS
          My blog
          Facebook

          Comment


          • #6
            Originally posted by Dizzydiza View Post
            To be honest I have successfully avoided selling my stuff to shops so far because I have been unable to determine how to sell my stuff wholesale. I feel like it could be more work for less profit. I have since been approached on the idea of sale or return but again Im not sure about giving the shop a slice of my profit which I might add is only pocket money profit not the type where hubby could put in for early retirement profit!
            and the problem with sale and return is you don't know what state your stock may be in when returned - maybe not so much with jewellery, although there can always be problems, but certainly with cards or something like that. Probably not a cost effective way to do it unless you feel the turnover is going to be good.
            Cynthia
            http://iforjonesdesigns.website.orange.co.uk

            Comment


            • #7
              she said it would probably be sale or return to start with to see if my things sell or not, then if they do she would buy stuff. I did think 3% was a very low markup. Surely she must realise i will embellish my costprice if she only addidng on that much?

              Comment


              • #8
                Was it via email ? Maybe she missed the 0 off 30 ??

                Tell her the retail e.g. £40 ... Which her cost price is £20 ... your costs £10..

                Like peter said
                .


                Promote your craft site today : Add Your CRAFTS
                (£5.50 a month or £50 per year)

                Fun new blog: Snowboard Stuff

                Comment


                • #9
                  no it was face to face and i repeated it so was def 3%

                  Comment

                  Working...
                  X