as related to costs. Say I spend on average 300.00 in parts, what should my markup be? At least 50%? In this case, a total of $450?
2007-01-07 21:16:06 · 3 answers · asked by Danny_in_LA 2 in Business & Finance ➔ Small Business
minimum of 20%
& max of 50%
2007-01-07 21:19:30 · answer #1 · answered by azayi1 5 · 0⤊ 1⤋
When you own a business, remember that the value of what you are selling or the service you are providing is more than just the net sum of the costs - this is the profit factor. One thing I would recommend is you factor in the time for your labor as a cost and pay yourself a salary that way even if the business doesn't make a profit, you can still earn a living.
Another way to look at it is the opportunity cost of what you are giving up. By working for yourself, you're giving up the salary you could have earned working for someone else. How does that compare with the autonomy of being your own boss and the headaches that come from running your own business.
2007-01-08 05:23:23 · answer #2 · answered by Justin H 7 · 0⤊ 0⤋
It depends on how much overhead you have and how much you're selling. If you're doing it online out of your home and selling $10M, 10% would be good.
2007-01-09 04:27:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋