Excel Spreadsheet is great for that.
Trying to come up with a new price list.
Is there a program that can do this for me. All I have to do is add The cost of supplies, shirts, and etc. and it will come out with a price? Just wondering before I get started.
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You might as well just get a job and skip the going out of business part that you will get to when you don't make any money.Is there a program that can do this for me. All I have to do is add The cost of supplies, shirts, and etc. and it will come out with a price? Just wondering before I get started.
Never, ever, ever price just based on cost. Always price based on value to your customer. There is no magic formula. You will sell some items with a 10% markup and others with 1000% markup. It just depends on what you are selling.
Here is an example. One color screen printed T's are not worth much. That same one color for Numbers on T's for a softball team are silver, and do it on sports uniforms and that is gold. Add team booster club shirts and you are now looking at a nice business.
If you priced all of those based on cost you would be working all day long and have nothing to show for it at the end of the week.
The selling price has nothing to do with the cost. Price is determined by what a given item is worth to a customer in your market. Once you know that you can determine your cost and see if you can profitably sell that item.
So your first step is to determine the range of prices your customers are currently paying for the product you want to sell, you do that by price shopping your competitors. Let's say the range is $10-13. You determine your cost to produce this item is $6 so there is $4-7 potential profit. Most likely the guys who have been in business the longest and/or are reliable and quality conscious will be on the higher end of the range so unless you have a reputation going in you'll need to be in the middle or towards the bottom of the range ($10.00-11.50).
Edit: I shouldn't have said that cost has nothing to do with the selling price because ultimately you will find there is a relationship there but my intention was to get you out of the mindset that you need to add up your costs then use some multiple or a percentage to find your price because that is bassackwards. Once I knew the price I wanted to sell for I came back and worked up a formula that involved my costs so that I could adjust the price in the future and have a base point for introducing new products.
So your first step is to determine the range of prices your customers are currently paying for the product you want to sell, you do that by price shopping your competitors. Let's say the range is $10-13. You determine your cost to produce this item is $6 so there is $4-7 potential profit. Most likely the guys who have been in business the longest and/or are reliable and quality conscious will be on the higher end of the range so unless you have a reputation going in you'll need to be in the middle or towards the bottom of the range ($10.00-11.50).
Edit: I shouldn't have said that cost has nothing to do with the selling price because ultimately you will find there is a relationship there but my intention was to get you out of the mindset that you need to add up your costs then use some multiple or a percentage to find your price because that is bassackwards. Once I knew the price I wanted to sell for I came back and worked up a formula that involved my costs so that I could adjust the price in the future and have a base point for introducing new products.
1 - 4 of 4 Posts
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