I'd like to sell my purses to local boutiques. How much profit % can I expect to make off each item?
Opinions expressed by Entrepreneur contributors are their own.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.