You find it easy to make things yourself and struggle when it comes to calculating costs and deciding how much to charge. Not to worry, I'm here to help with that. In order to get your products to market, you have to know how much your creation has cost you to make, and how much you sell it for sale, you make a profit. The first step to take is to understand the cost involved in making your product. From conversations I have had with people who make their own products, the answer to how much it has cost them to make their product is not something they're able to tell easily. This genuinely is because the initial focus has been on creating the product and not selling it.

So with the help of a couple of examples, we're going to show the steps to follow to come up with a total cost of making your product also known as your cost of products we're going to use are the facts crossbody bag and a fabric cosmetic pouch. Let's start with the fabric crossbody bag. First thing to do is to list out all the materials used to making the bag. We have shelf fabric, lining fabric, heavy interfacing, medium interfacing, heavy fleece interfacing, zip, base, thread squarings slider, magnetic class. Second step is to add the quantity used of each material. We have 1.4 meters of shelf fabric 1.4 meters of the lining fabric.

Not point nine meters of heavy interfacing, not point nine meters medium interfacing, not point four five meters heavy fleece interfacing. One tip one base meter threat to squarings one slider, one magnetic class. First step is to add a cost against the quantity used of each material. shelf fabric was $7 50 lining fabric $7 50 heavy interfacing $2 50 medium interfacing $2 50 heavy fleece interfacing $3 that $1 base 25 cents throughout 10 cents squarings $2 for two slider $1 magnetic class 50 cents. Adding all this together gives us a total cost of $27 and 85 cents. We will now do the same exercise again this time for the fabric cosmetic appeal Step one is to list out all materials we have shelf fabric, lining fabric, medium interfacing, zip, and thread.

Step two is to attach quantities to each material. We have naught point two meters of shelf fabric, naught point two meters of the lining fabric, not point two meters of the major interfacing, one zip, and half a meter of thread. The third step is to add cost to the quantity of each retailer used. shelf fabric was $1 25 cents, mining fabric $1 25 cents, medium interfacing 70 cents, that $1 thread five cents. adding these costs together gives us a total cost of $4 and 25 cents. Now you know the three basic steps to calculate your cost price.

Just to recap, the steps are step one, lift out materials, step to attach quantity to each material. Step three, add cost to the quantity of each material used following these steps would give you a cost price of your products. And this is the most important thing to do in order to get to the final goal of setting up retail price.