When you are STARTING a business there are 3 basic questions you have to answer.
#1 is what are you going to sell?
#2 is HOW MUCH ARE YOU GOING CHARGE?
In my last post I talked about your product, this time I want to talk about WORKING OUT YOUR PRICE .
This one definitely needs some research.
Most obviously check what others are charging for similar products. (when I say product I mean service as well)
Then take some time to work out the cost of your materials and how many you can make in the time you have available. from these numbers you can work out what YOUR COST PER PRODUCT (or service) is.
THIS IS THE LOWEST PRICE YOU COULD CHARGE
But if you want a real business you need to also value your time so rule of thumb think £10 per hour as this is about minimum wage.
After you’ve got a cost per product
THEN COMES THE ARTISTIC BIT.
This is about the extra benefits you personally bring
If you’re product is UNIQUE jewellery made of excellent materials you can charge more.
If YOU are HIGHLY TRAINED or EXPERIENCED you can CHARGE MORE.
If you’re product will perfectly solve your customers problem charge more.
Remember
YOU ARE ENTITLED TO MAKE A PROFIT.
If you found this post useful then like my page to find out more.
Please ask any questions in the comments and I’ll try and answer them.
If you want to find out more then like my page and look out for my posts
Or you you can download my Back if The Envelope Business planning guide from my website
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