What does your product really cost to make?
If you tell me your product costs $8 because there is $8 worth of material in it, you may not know what that product actually costs yet.
In Episode 5 of Festival Geeks, Michael Priest begins the Know Your Number™ Pricing Workshop by working through the costs that are easy for new vendors to overlook.
Using a simple product example, we look at:
- Delivered replacement cost of materials
- Products that don’t make it to sellable inventory
- Small production supplies and consumables
- Utilities and machine-use allowances
- Product-specific equipment costs
- The value of your production labor
The goal is not perfect accounting.
The goal is to stop accidentally treating a real cost like it doesn’t exist.
By the end of Episode 5, our example product that appeared to cost $8 has grown to $14.44 just to make.
And that is where we stop.
Because you still haven’t paid to sell it.
Episode 6 continues the workshop with event costs, travel, selling labor, business expenses, card-processing fees, and everything else your price has to carry.
Free companion resource
Use the Know Your Number™ Pricing Workshop with Episodes 5 & 6. It includes the 2-page Pricing Worksheet and 5-page Line-by-Line Guide.
Get the Know Your Number™ Pricing Workshop
Festival Geeks
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