KNOW YOUR WORTH...

twelve cents tacked onto your cost.

• $1.40 - shipping/handling divided by 12 wood cutouts = $.12 cost per item for shipping/handling

Each item must be assigned a "materials cost" figure. Keep track of and count all paint, wood, ribbon, glue, etc.

        Example: Determine how many items are cut from a piece of wood costing $1.80.

If 10 items can be cut from the piece, divide the $1.80 by 10 to determine that each item cut uses 18 cents of lumber. Do this with each kind of material used.

Sometimes you don't count those extra screws you use to make the item more solid, or you might use additional ribbon to make it more attractive. These are the profit eaters if you have not figured them into the cost of materials and supplies.

To leave a reasonable margin in your pricing, the materials cost is the figure to double. This allows a price range when selling at wholesale, or when putting a sale price on an item that is not selling.

You might laugh if you check out Real Hourly Wage Calculator to find your "real" hourly wage!

Later we will show you how to use these figures to find a Cost Per Unit.

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