how do i do costing for goods i want to sell? what are the factors to take into consideration when doing it.?

Answer 1

Not only are labor and materials factors, but location (rent), tools , licenses, and any other misc costs....these falll under 'overhead'
Figuring profit is trickier than you think. adding 20% of cost doesn't yield 20% profit. Profit is properly figured on selling price. To make 20% profit, you must add 25% to cost.
To find correct selling price to gain a certain net profit;
Add the percentage of cost of doing business (total production cost) and the desired % of profit. Subtract this from 100. Divide the cost by this remainder.
Ex; total cost of producing a purple scruple = 6.00
desired profit (in percentage) = 25%
25+6=31>>>>100-31=69>>>>6.00/.69=8.695 or 8.70
Generally speaking, 25% of cost added onto cost yields 20% profit, 33 1/3% equals 25% profit, 100%+cost=50% profit

Answer 2

well there are several factors and it really depends on your transaction. But here is a generalized version:-

1. The cost at which you buy (inclusive of taxes) +
2. Transportation to where you will store the goods +
3. Storage charges+
4. transporation to your client+
5. Transaction is on cash or credit basis. If credit then Interest calculated should be added as your costing.+
6. Any other service provided by you during delivery or otherwise relating directly/ indirectly to the transaction+
7.Your profit margin.

Not all these things might be applicable to you. But you can pick the ones which are.

Answer 3

The general rule of thumb for a reseller is that your prices needs to be about 3 times your cost. This will cover all the things you mentioned, plus returns, warehouse damage, insurance, etc.

Answer 4

you have not mentioned about the business manufactureing or tradeing
for tradeing
FOB cost or CIF
purchase price
add..freight
insurance
taxes,duties & etc
commisdon for clearence
transport from port yard to warehouse
invisible expenses

after above all, add the Overhead expenses.... rent, power, telephone,wages,advt & etc

then add the profit margin

Then you arive the final MRP