Monday, January 12, 2009

Business Planning

Having a business is hard work, determination, and learning from great business men & women. Thank you L. O.K. , a few days ago I announced that I will be going wholesale with my men's necklace and women's charm bracelets. In order to make sure I get my profit in wholesaling, there are things that I have to get a figure on.

Here are the answers to the questions that L presented to me in order to calculate a wholesale price to the business that wants to sell my jewelry in their shop.
1. The cost of every element of each item is $25.00 total of all item cost added together.
2. I make at least 3 to 4 bracelets and/or necklaces a day (5 days). For each item it probably takes me between 30 to 45 minutes to complete 1.
3. Let's see, I hope I calculated or I hope I'm answering this with sense. How much do I think my time is worth? I would say $9.00 an hour for the 5 days I take to work on the jewelries. Estimated probably about $90.00 a week of my time.
With a beginning business, until you make enough money to pay an assistant, everything is done by yourseld. Except, if you have business oriented friends like L to help you. You rock girl.
While the wholesale price are being worked up. I'm still working in the assembly line, and production is going great. I have quite a bit of bracelets done. I have to stock up on the menns necklace though. Well o.k. I'm off now to get to work. I've given Sunday's & Mondays off for myself in order to stock up on my products. I know that with Valentines Day around the corner is going to be a great way to advertise and get lots of orders and people purchasing something for their sweethearts. I can't wait.
Enjoy the rest of your day, and always be kind to others.
Treasure Ann


adozeneggs said...

Now, it costs $25 for the materials to make just one item?? Is this for the little charm bracelets??
That seems very high to me. Also, on average you can make about 2 an hour, so the labor cost for each bracelet is $4.50. If you add the materials $25, and the labor $4.50, that would mean that each bracelet costs $29.50 to make and you should charge about $47.20 each. (that gives you a 60% margin, which is standard)
Again, that seems very high to me. Are you sure the $25 is for just one bracelet??

Treasure Ann said...

Actually I added the whole total of the bracelet and the men's necklace altogether.

But for the bracelet the toal cost of all the materials would be $9.00

For the men's necklace the total cost of the materials would be $10.00.

I'm sorry, I did it altogether and that's why it came out to be to much. I'll post another figure for you. Thanks again L.