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babystill2 | I am starting my own business, and i need help with the calculations,? |
i want to know how to calculate my profit and how much to charge my customers. Please only serious answers. Thank you
Additional Details
it's a clothing company |
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EMILY S
|
i would charge 20% more than what u pay for your produce depending on what it is, so divide the amount you paid for the item, by 100, and this will give u 1% of the item, then to get a price of 20% more, just times that amount by 120, and there u go use a calculator therefore if u do this yourgross profit will be 20% overall so if you buy £1000 worth of stuff you ill get back £1200, and so on, so when u want to raise your prices just do the same, and always times the 1% amount buy say 150 and then this wil give you 50% profit, is this making any sense or am i rambling |
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John B
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Its good to see that you want to start up a business. Hope that you have thought through the market, target audience, facilities etc:
OK for the basics: Profit is what is left over from your income following deductions of costs> Costs can be salary, rent, lights, aircon, storage, transportation etc. The list can be long depending on your business.
You don not describe your business idea and so its hard but the above is a guide and a part of the thought process:
As for charging your customers: Is it time or is it a commodity?
Time is usually calculated by Costs x % of profit
Goods are cost of goods + storage + outgoings + % profit.
Some goods can have a higher profit % than others but be careful:
As a start up you need to do a business plan and that will ehlp you with answers to your questions. You can get sample plans off the internet.
Give a litle more info next time and maybe the community can help you more. |
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livingonthefaultline
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if you need help with adding then you should not run a business friend |
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shaz
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Frankly u hav to see whts ur poduction cost then try to find out wht is the market of the product u r mfg
it depends upon u hw much margin u want to earn on a product |
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roaming_tigerr_uk
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Gross Profit expressed simply is the difference between what you buy your goods for and what you sell them at. Net Profit is the above less your costs of operating. How much to chrage your customers is more tricky since you will need to understand your market in some detail. To price your products/services, work out how much you have to buy for, your costs of operation and a profit margin. Compare this final price with other similar products on the market to give you an idea. When comparing, do NOT use price alone as you must also consider quality, distribution, stock, service competition and delivery!
Hope that's serious enough - lol |
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Liza L
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hi i am liza if you want to start a business you must go to yahoo b |
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Invincible
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can u come to my classroom :P |
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gotbite4
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uhm hire someone to do that for u or ask someone u trust.
well it is us business. wut do u think?
go check ...the uhm money thingys.online..stockk markets lol |
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Barbarian
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In a startup you need to be flexible in your approach as your need is to build up a customer base and reputation. Work out your costs of goods and overheads and expected sales over a time period. example over a month 10 items at 10$ goods cost plus 20$ overheads totals $120. Sales need to be over 120$ to be in profit so selling 10 items at 13$ gives 130$ sales and profit of 10$. You have 10 customers who you can grew by marketing and slowly increase price to an acceptable profit level. . |
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