What percentage of profit should I aim for?
I am making gifts to sell on Etsy and am wondering what I should price it at. I thought it was calculated by cost of materials multiplied by what percentage you want to make. Some one told me profit should be ten times that of the cost of materials, but I can't justify selling something for $50 if the cost of materials was only $5.
Shouldn't you take into account how much time you spend making the product? The material might only be $5 but if it took you 5 hours to create, then $50 really doesn't seem that much for your labor. If what you are making only takes 15 minutes...then maybe you can afford to drop the profit margin a bit! I guess it comes down to what you think is fair and what you think you can get out in the market. Good luck!
Copyright © 2018 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.