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Cost/Labor Question


Tess

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Hey all. I am re-doing my cost, and making sure my prices arent going to need a hike up. In doing so I came across a little labor question, that will be especially important this year, since I am hiring employees.

When figuring cost, do you add the labor % INTO the cost or Outside the cost? For ex, are you doing your cost $XX.xx * XX% (labor) then that total times 2 for wholesale or 4 for retail? OR are you doing $XX.xxcost

times 2 for wholesale (or 4 for retail) plus 20%?

Just wondering what the rule of thumb is. Oh and is 20% enough for labor/utilities?

TIA

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i think alot of it comes down to where you live, i couldnt sell a candle for alot so i dont add in my labor when figuring the cost of candle to me, i do however break down elec, supplies(paper towels, baby wipes etc), and shipping into the cost of the candle. hope that helps:grin2:

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I don't use the formula / cost (matl) x 2 for wholesale. I take matl + labor + profit (what you need your company to make) = wholesale price. Sometimes you have to "tweak" it for your particular area. There was a good post on this just before the board went down last week. Carole

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I don't use the formula / cost (matl) x 2 for wholesale. I take matl + labor + profit (what you need your company to make) = wholesale price. Sometimes you have to "tweak" it for your particular area. There was a good post on this just before the board went down last week. Carole

I base my prices this way also.

Janette

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