What many don't understand is that no business owner is pocketing 100% of what they're charging. an $18 product is sometimes only a profit of $8 because $10 of that goes to shipping and cost of materials to make the product. Please, do not fight with small business owners
They have to pay $ to manage their websites. Anyone who accepts payment online is paying $$ to have another company process those payments for them. So that $18 product may really be a profit of less than $8-10.
The first year of business is always difficult and usually you lose money before you make money. Charge it to the game! This is BUSINESS!! The second year is when you start to hit your stride and understand how to do everything better and make an income.
I account for shipping in the cost of my product. I already added shipping to that. $25.50 price. The shipping is $8.50 for 2 day priority shipping because that's all I want and will offer for shipping. The product cost $10 to make. $18.50 - $25.50. That's a $7 profit.
Please, please, please do not fight with me about my pricing. I will NOT change it. I just won't. This is how much it needs to cost to produce, package and ship the product out
I love to talk NUMBERS because people want to know and people need to know.
50 orders at $25.50 an order is a NET PROFIT of $350, not $1,275 BECAUSE I need to ship each package and make each product and production/shipping is $18 a unit (1 unit is one 5 pack of incense (50 incense sticks)). Understood?
See, people will charge $50 for something that *seems* like it should be $15 because they want a LARGER PROFIT. if it cost them $8 to make they want a return of at least 4 times that. You want to make enough money from a sale to make the product two times over and pay yourself.
I love love love love numbers
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