#1. Calculate your costs as of TODAY, not 3 years from now where you think you’re going to be.
#2. If you start your business selling direct to consumer, keep in mind how you’ll determine your retail prices. You may want the option to wholesale your line later so allow room for that.
#3. Use a good cost sheet that will give you a view of wholesale, retail, and gross margin.
#4. Research your competition to see what price the market will bear for your niche. If your prices are higher, make sure it’s clear to the consumer why.
#5. If your product’s perceived value is higher than it costs out, raise the price.
#6. Packaging is part of your cost sheet – hangers, poly bag, tissue paper, jewelry cards, boxes etc.).
#7. Product development is NOT part of your cost sheet
If you’re confused about some of this, there are 2 ways I can help. First, there’s and entire section on Costing and Pricing in the New Designer Program (including a cost sheet template). Second, you can book a Session to go over your costing and get a handle on what your markup should be in order to be profitable.