What is your current markup? What was your cost of goods? How bad do you want to unload the inventory? What is the current retail price and how many have you sold at that price?
There is no set percentage that is right. You need to figure it out based on all your variables.
Is this just an arbitrary promotional sale? May as well just choose an arbitrary percentage...
$100 x (100%-15%) = sales price
$100 x 85% = salesprice
$100 x .85 = $85
You can easily do this in MS Excel, or any spreadsheet application.
Make a cell the discount, format the cell as a percentage
Make another cell the original price
Make a third cell the discount amount.
-The formula for this cell is cell2 x cell1
Make the last cell the final sales price.
-The formula here is cell2 minus cell3
No, I'm new, I'm using sale to attract. I have the designs and ideas I know will sell, I'm all alone building business ! I may not have business school however, I have determination and have been peacing together business.
Cost of goods: garment + shipping to you
Cost of decoration: consumables used for product being sold; ink, vinyl, mask, paper, pretreatment, waste., spoilage (percentage you want to add for errors and you waste the garment)
Cost of equipment: all equipment costs totaled divided by 1200 days (5 years of 5 day work weeks) divided by hours worked per day divided by 60 minutes
Cost of location: monthly rent divided by 20 days divided by hours worked per day divided by 60 minutes
Cost of utilities: monthly water, electricity, gas bills divided by 20 days divided by hours worked per day divided by 60 minutes
Markup: Percentage you want you add on as profit for your product
Labor: the amount you want to charge for labor per hour divided by 60 minutes
Formula:
Total cost =
(cost of goods + cost of decoration) + (number of minutes it takes to make the product * (cost of equipment + cost of location + cost of utilities + labor))
This is simplest way I can come up with of deriving your true cost of production and what you can expect in profit after selling an item.
There are other costs that I might have missed like maintenance for your machines, phones bills, web hosting fees, graphic design fees, shipping to the customer, merchant account fees and probably a host more that I personally use in my costing but again this is a simplified example that hopefully helps you understand how to arrive at a real selling price that will help keep you in business.
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