Friday, October 7, 2011

Im starting a business...? -

Can someone help me with my online business please? I m going to be set up as a sole trader. I need help with pricing up.Here are the costs:T-shirt: ��1.40Ink: ��1.00Packaging: ��0.67Artwork: ��3.00Labour: ��3.00Paypal fee: 3.4% + 20pVAT: 17.5%The total running cost of my business is around ��100 every 2 years.Can someone help me with how much I should charge for T-shirts? This may seem like a stupid question but I m just trying to get everything right and I m a bit confused because people seem people where just telling me to work out the cost then charge whatever I want and take the profit. Others were telling to work out the cost then double it to get the RRP then take half for me then half for the business on my earlier question. So I m a bit confused.

There is no right or wrong answer, I doubt whether you ll get any more satisfactory answers than for your last question.Just add up your costs and then add however much you want to make in profit. It s up to you. 100% profit is fairly normal. Just make sure you don t price too high. If you find your sales are slow, perhaps drop the price slightly.

the tax man vat and council business rates will want their share as well. if you ve got enough money saved up to pay your wages for a year pay any rented property, vehicle costs, deliveries collections,for the year plus materials including say 200 t shirts to get going, add all that up and if you are prepared to gamble on it being a success then go for it (without takings for self for the first year. can you work 24/7 to try and make it work?

It all depends.. you want to set up competitive price?? or you know that you are unique in your product.. and so you can add extra amount of profit for your unique product/ service?? As the simplest you can do .. calculate the total costs other than the T-shirts / year.. then the total will be the adding costs.. which will be A Then calculate (your prediction of how many shirts you can sell / year ?? try not to be pessimestic nor optimist.. ) Then calculate the total costs of the T-shirts you predicted to sell .. say .. BAdd the total of A + B = total costs = C .. Then you can multiply total costs = (C) multiply it x 2 or x 3 ....... it is up to you even if you want to multiply it for more than that .. After the multiplication.. just devide the last number on the number of your prediction of sold T-shirts.. .......... this would give you how much you could charge / each T-shirt.. hope this help... good luck , and Have a great day .......

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