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July 6, 2016

July 4, 2016

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I'm busy working on my blog posts. Watch this space!

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Quoting a product

July 6, 2016

Quoting a new product is no easy task. I can definitely say that every time we launch a product to market the question arises again. It's been about 3 years since Iv'e been in the game and it doesn't get easier, not even a bit. it's said that there's a formula which you use to figure out the right retail price, it goes something like this:


 To simplify things out I came up with my own:


PRODUCTION COST (materials + labor) X 4 + VAT = RETAIL PRICE


Why X 4? Well, if you consider selling your product through a wholeseller (store or 3rd party website) they will need to sell your product at the same retail price, and so their price would that of wholesale:




Of course you should put a MOQ (Minimum order quantity)


So how about distributors? where do they come in? 

That's a good question I'm still trying to figure out. At this point in time I'm finding it hard to understand how to keep producing locally and selling globally with losing face. Stay tuned.






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