Since the sale is completed, you know that those cards will not be returned to you even if the shop could not sell them. Outright Sale - Just mark up 100% from the cost of your finished card. Notice the difference in the Retail Price of 0.44 cents. If based on Wholesale List Price of $3.43: Your price to the shop would be $3.43 ($4.90 minus $1.47) is $4.90 and the percentage to be given to the shop is 30% Let's say that your cost is $1.00 and your R.R.S.P. Is this 30% to 40% to be calculated based on the Wholesale List Price (price you give to the shop) or the Retail Recommended Sale Price (R.R.S.P. What percentage are you giving to the shop? Usually you give the shop 30% to 40%. Usually, the discount is from 10% to 20% so this will mean less profit to you. Promotion - Year end sale or other promotional events.
#Greeting card shop in a box free#
Free Showcase or display unit - Do you need to provide these to the shop?.Damaged Stock - After staying on the shelf for a while, there will be damaged cards especially from handling by consumers.
Consignment StockĬonsideration to take note of if you are consigning your cards What arrangement would you make with the shop owner? Are you consigning your cards (Consignment Stock) or are you selling outright (Outright Sale) to the shop. What are the kind of cards being sold in the market within this region? What are the price range? What price range would you think your card is at?
You will need to study the area that you are selling your card. Or should you make lower cost cards so that you can bring down the Retail Price of your handmade cards.ĭefinition : Retail Price - The price that the consumer pay for your card.What are their earning and spending capacities?.Who are the people who you are targeting to sell your cards?.Understanding The Whole System Of Pricing Homemade Cards Note: You can have 2 to 3 different ranges of cards. Therefore cost per card = $800 divided by 800 cards produced per month = $1.00 Calculating The Cost of Cardįor example, in one month you made 800 greeting cards - (different designs but around the same cost) So considering the above 3 factors, you would calculate the cost price of each card accordingly. Note : With more practice and experience, you will find that you are able to accomplish more in lesser time.
And how much time would you need to make that particular card. How much would you pay yourself for an hour of work? If you are not sure, ask yourself how much would you pay for someone to come in and help you make that card. This is the time and labour you put into making that particular card.
Pricing homemade cards include adding in your labour time. Pricing homemade cards tips : To make a good profit margin, you will need to know where to source for cheaper raw materials. Again this is important in pricing homemade cards and so records keeping is important. These are what is known as the raw materials needed to manufacture a product. The particular kind of cardstock, graphics, embellishments, ink, etc that you used to make that particular card. The cost incurred to make that particular design card depends on the card making supplies you choose. So let's say that you bought a printer at $200 and you want to amortize it over a period of 3 years.ĭefinition: amortize - To write off an expenditure for office equipment by prorating over a certain period.Ĭalculation: $200 divided by 3 years divided by 12 months = $5.60 per month So when you purchase any card making tools or supplies, do keep a record of date of purchase and the price you paid for it. These are also to be included in pricing homemade cards. Trimmer, laminating machine, computer, printer, rubber stamps, brayer, etc. Pricing Homemade Cards : 3 Areas To Factor In 1. And this is an area that you need to do some research and a fair bit of calculation.Ĭertain areas that you will need to consider on pricing homemade cards. These are questions that every card making business entrepreneur would ask with regard to pricing homemade cards. How much should you charge? What is the right price for a handcrafted card? What percentage should you mark up your prices?
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