Japan IT Week 2024 Brochure by 47Billion (English)
Pricing spreadsheet pdf
1. Single Product Pricing Model
ABC Company, LLC
PRODUCT: A zipper bag
Your materials
Supply Cost
Zipper $0.35
Fabric $1.00
Lining $0.25
Notions (thread, needles, etc.) $0.10
Total material cost $1.70
Overhead
Overhead item Cost
Rent (portion of home) $200.00
Marketing (search ads, blog ads) $50.00
Business cards $25.00
Yearly sewing machine service $75.00
Yearly overhead cost $350.00
'/ # of items produced per year 200
Overhead cost per item $1.75
Labor
Task Minutes
Fabric selection 5
Cutting 5
Sewing 5
Packaging and shipping 5
Total minutes spent 20
'/ Minutes per hour 60
Total hours spent 0.33
x Your hourly rate $20.00
Total labor cost $6.67
Total costs = Break even price $10.12
Price
If you choose your own profit margin:
Profit margin (%) 50%
'x Break even price $10.12
Profit $5.06
'+ Break even price $10.12
Price with profit margin $15.18
If you want to sell wholesale, best practice is to multiply by 2 at each stage:
Break even price $10.12
'x 2 2
Wholesale price $20.23
Wholesale price $20.23
'x 2 2
Retail price $40.47
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2. Things to Consider
Materials: What supplies do you use and how much do they cost?
Things to think about in this section:
- What materials do you use?
- If you buy material in bulk and use it for multiple items, what's the cost
per item?
- If you're a vintage or supplies seller, what was the cost of the original
item?
- What's the cost of shipping materials?
- Did you pay to ship any of the materials?
Overhead: What are your business expenses aside from wage and
supplies?
Things to think about in this section:
- Do you have to replace tools a certain number of times per year?
- Does your machinery require maintenance or cleaning?
- Have you purchased business cards?
- Do you pay someone to help you?
- Do you spend money on marketing or advertising?
- Do you rent studio or office space?
- Do you have fees to pay (such as for Etsy or Paypal)?
Labor: What are the tasks required to produce an item? How long
do they take?
Things to think about in this section:
- Does it take time to purchase or design the materials?
- How long does it take to source, create or clean?
- Do you add a second round of finishing touches?
- Will you have to go to the post office to ship?
- What were you making at your last job per hour? How have you
progressed?
- What would be a fair wage?
- What's the going wage for the type of work you're doing?
Price: What's the right price?
Things to think about in this section:
- What's the added value to your item?
- How many sales do you expect this year? How many would you like to
make in a year?
- Do you need to change your making process to spend less per item?
- Where is your business? Are you happy breaking even? Are you aiming
for wholesale?
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3. Service Pricing Model
XYC Company, LLC
Industry: Marketing Consulting Firm
Income
Joe Schmeaux’s Take-home Pay (annual) $100,000
Divide by: # of Working Days 260
Joe’s Take-home Pay (daily) $385
Overhead
Overhead item Cost (monthly)
Rent $2,000.00
Salary for employee (secretary) $2,000.00
Utilities (electricity, phone, internet) $200.00
Business cards $25.00
Postage $75.00
Benefits (health, retirement plan, etc.) $1,310.00
Insurance (liability) $250.00
Equipment cost (software, computer, etc.) $20.00
Monthly overhead cost $5,880.00
Yearly overhead cost 70,560
# days working with clients 161
Overhead cost per day $438
Rate
If you choose your own profit margin:
Profit margin (%) 20%
x Overhead cost per day $438
Profit $87.54
'+ Break even price $438
Price with profit margin (per day) $910
# of hours worked per day 10
Price with profit margin (per hour) $91
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4. Things to Consider
Overhead: What are your business expenses aside from your take-
home pay?
Things to think about in this section:
- Have you purchased business cards?
- Do you pay someone to help you?
- Do you spend money on software for your computer that you use for your
business?
- Do you provide benefits for your employees?
- Do you have any utility costs, such as internet, phone, and electricity?
- Do you have liability insurance for your business?
- Do you rent studio or office space?
- Do you use mail to communicate with your clients?
Price: What's the right price?
Things to think about in this section:
- What do you expect your profit margin to be for your business? (Avg. for a consulting
firm is usually between 15 and 25%)
- How many hours to you plan to work in one day?
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5. ABC Company, LLC Price Schedule by Margins
Costs
Items
Wholesale Cost
per unit Quantity
Total Wholesale
Cost
Pens 0.50 100.00 50.00
Notepads 0.50 100.00 50.00
Tote Bags 1.00 50.00 50.00
Keyboard cleaner 0.75 50.00 37.50
Tent 100.00 1.00 100.00
Sunglasses 2.00 100.00 200.00
Total 104.75 401.00 487.50
Client Acquisition Costs* Selling Price
Items % OF ORDER
CAC per item
sold
CAC as % of
Wholesale 35% 40% 45%
Pens 10.26% 0.84 1.68% 74.99 81.07 88.22
Notepads 10.26% 0.84 1.68% 74.99 81.07 88.22
Tote Bags 10.26% 0.84 1.68% 74.99 81.07 88.22
Keyboard cleaner 7.69% 0.63 1.68% 56.24 60.80 66.17
Tent 20.51% 1.68 1.68% 149.98 162.14 176.44
Sunglasses 41.03% 3.35 1.68% 299.96 324.28 352.88
U.S. Total 100.00% 8.17 731.15 790.42 860.15
Profit
Items 2010 2011 2012
Pens 24.99 31.07 38.22
Notepads 24.99 31.07 38.22
Tote Bags 24.99 31.07 38.22
Keyboard cleaner 18.74 23.30 28.67
Tent 49.98 62.14 76.44
Sunglasses 99.96 124.28 152.88
U.S. Total 243.65 302.92 372.65
Profit to Date 1,000.00 1,000 1,000
Fixed Costs 360.00 360 360
Profit 883.65 942.92 1,012.65
Amount to Profit Goal -2,116.35 -2,057.08 -1,987.35
Assumptions
Selling Price =
Cost/(1-Markup On Selling Price)
Starting Point 35%
Increment 5.0%
CAC* 8.17
Monthly Profit Goal $3,000.00
*CAC: Client Acquisition Cost (See Separate Worksheet)
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6. Client Acquisition Costs
ABC Company, LLC
Marketing (search ads, blog ads)
Campaign Cost per month
Customers
obtained
Cost per client
obtained
Facebook Ads 5.00 5.00 1.00
Networking Events 100.00 10.00 10.00
Promotional Products 50.00 3.00 16.67
Email Campaign 10.00 2.00 5.00
Total 165.00 20.00 Average CAC 8.17
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