Pricing

With a new business comes along many trials and errors. Before I left for the weekend, Anne and I have been working on the pricing for the wholesale line. The line is not complete, however we do have a good start. As I have mentioned before, working with underdeveloped countries is a process. Trying to establish our mark up, rate of duty and shipping costs is a trial and error. It's hard to "guess" what the shipping will cost. The shipping depends on what is the in the box, the rate of duty, how much it weighs and the dimensions of the box. When your not entirely sure on how much the products will weigh or the dimensions of the box, it is difficult to establish a shipping cost.

There is about 10 or so items from our wholesale line that we need appoint a wholesale price. The first step is to figure out how much it costs to make the product. Then, we have to figure out the rate of duty (which is what I will be finishing up tomorrow.) Next, we have to figure in the shipping cost. As I previously mentioned, this will consist of some trial and error until we feel we have a good prediction. Anne has been sharing with me some detailed and imperative information about the business side of the store. It's funny because most the time when I ask how she got that number, her response is always, "I just guessed!" When running a new business and/or starting up a wholesale line, you have no previous numbers to go off of. Therefore, when constructing a cost calculation sheet many of the numbers are peer guesses, which will be altered and adjusted as time goes on.