New Product Price Calculator Tool
posted by admin at 01/15/2020
We're pleased to announce the addition of a brand new product pricing calculator tool which is available to all vendors in your back end admin area only. Click the blue button next to the 'Item Price' field to open the calculator.
The tool is designed to be a quick price calculation tool to confirm that your pricing is correct and that you are actually making some money! :-)
Pricing your products for selling, either wholesale or full retail, is difficult at the best of times. Hopefully this first of a series of new online tools available to Odissa members will help to remedy that situation and provide confidence to be able to price products accordingly.
How to use the tool:
Materials:
Add up all your materials and services costs; raw metal, stones, castings bought in, engraving costs, etc.
Packaging:
Enter your packaging costs and any postage that you may have incurred for sending the item out and having it returned for any services you may have used, or materials sent to you after being ordered in, for example, engraving and stones again.
Markup (% Optional):
You can optionally enter a markup here. A typical markup would be 50% (especially on metals. You wouldn’t usually buy metal in and sell it for the same price as you bought it once it’s been used on your product. This is a bonus but you can also think of it as an insurance policy to pay for mistakes or jobs that don’t go to plan! Hopefully, over a year you’re still in credit and haven’t had too many things go wrong!:-)
‘Materials Total’ is the sum of the above calculation.
The ‘Labour’ Section:
Time Taken(Hours):
Self explanatory; how long did it take you? 30 minutes? Enter ‘0.5’ 45 minutes? Enter 0.75
Hourly Rate:
How much are you paying yourself/hour? Experience will count for this figure. If you’re a total newbie and things take longer for you than they would do if you were more experienced, then start with a low hourly wage. The least you should work for is minimum wage but as you get more experience and faster, you could maybe be working at around £25/hour (at time of writing in 2020) – only you can decide this.
Markup (% Optional):
This is optional. For instance, if you have an employee/somebody else has made the item for you and their hourly rate is £25/hr, you would mark up the outwork as it’s no point charging the same amount as you pay out; you won’t make any money. Double up if you can, 100% is a reasonable figure for a labour mark up.
Labour Total:
Self explanatory again; it’s the total labour from the calculation above!
Overheads:
A years worth of accounts can give you an accurate figure here so, if you can calculate the percentage from your previous accounts, enter it using the ‘Custom’ radio button selected. However as a rough guide without this figure, if you’re working from home in your back room or a converted/custom home workshop, chances are your overheads will be ‘Low’; if you rent a small unit, opt for ‘Medium’. Dedicated factory? Opt for ‘High’. Chances are, if you opt for high overheads, you might be able to calculate an accurate figure as you should have done your sums previously!
