This ad will close in
Question added to topic Home Based BusinessJune 19, 2007

I'd like to sell my purses to local boutiques. How much profit % can I expect to make off each item?

My cost for manufacturing is $35 per bag. What if I did consignment?
You will need to do some research of the industry to find out what the normal markup is in your area of specialty. This is where it is important for you to have a clear understanding of your costs and your profit. Industry associations are often a great resource for finding information. It will depend a lot on what the retailers expect to be able to sell your purses for to ensure that they get an adequate profit off of your product as well. If you select to do consignment, normally they will charge a percentage of the sales price. Hopefully you have developed a business plan where you clearly identified what your business model would be and in that a clear understanding of how you would price your product. It's not only the cost of manufacturing you need to consider, but also include your overhead expenses, loan obligations, profitability goals.
Pam Newman is a Certified Management Accountant, author and Certified QuickBooks ProAdvisor for Financial and Point-of-Sale software. She is also president of RPPC, Inc., which provides customized business development services.

0 Comments. Post Yours.

About ASK ENTREPRENEUR

Ask Entrepreneur is a question-and-answer forum for and by the Entrepreneur.com community. Send in your burning business question, or comment on someone else's now. Have a Question? Ask Now

Topics (over 1000+ answers)

Don’t see a topic? Suggest One

Ask Entrepreneur Q&A Hangouts

Google + Hangout With Shark Tank
Google + Hangout With Jason Falls
Google + Hangout With Angela Jia Kim
Google + Hangout With Grant Cardone