So I’m new to cnc wood carving. I was just wondering how everyone decides on prices to sell.
Basic accounting principles for Cst Of Goods Sold and then a profit margin on top of that.
COGS should include ALL labor at your determined labor rate… “all labor” includes direct and indirect, such as marketing, managing a business, labor to obtain materials, Etc.
It should also include costs of the equipment, like the depreciation and maintenance costs of your cnc and other equipment.
Profit margin is not your pay, it’s intended to be money available to grow the business, expanding the operations.
What is the normal labor rate and % mark up after total cost of project?
It all depends on your self worth and what your product can demand and market can support.
What I sell in home goods will have a lower profit margin than wedding items.
The products that I have trademarks on have a higher profit margin than those Halloween lantern that flooded the market last month.
Same with a standard flag vs a personalized one.
Personally I pay myself more than I make at my 9-5, but I’ve amassed a decent customer base and good website traffic… in the beginning I paid myself less though
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