How should I price a product?
Now I've read that the at cost price is set, then the wholesale price is set twice that, and then the retail price is set twice that.
So if I bought fabric for 10 tshirts for 40 bucks.
Then thread for 20.
Then the sewing machine for 200 bucks, the tshirt's at cost price would be $260.
Is this the way it works, or am I wrong. I think I am, this looks ridiculous.
You'd be right if you were going to throw the sewing machine out each time you make a set of tshirts or whatever then buy a new one when you want to make more items.
First thing to consider, if you are making things by hand, you will not likely ever get your time out of it. The cost of the sewing machine is minimal pr item you make... you will potentially be able to make thousands of items over the life of the sewing machine with the occasional small cost for maintenance and new needles etc. The thread again is going to many items... you are not going to use $20 worth of thread to make 10 shirts. So consider the cost of making those 10 shirts to be $40 so $4 each. Depending on the quality and design etc, where you will be selling them and so on... you may be able to charge $8 or $80. You have to think about these things more than simply doubling the cost.
ya this is the way it works.
You have 260 dollars in. To price the shirts it matters if you intend to continue producing (which means you can still use the 200 dollar sewing machine) more shirts. It would be nice if you got some money for labor. Time is money.
You kinda need to throw a dart between 21 and 50 and establish a price. the cheaper they are the faster they sell, but the less you make.