Reply to "Dealing with Price "Negotiators""

Julia M. UsherFounder and Host, Cookie Connection; Owner, Recipes for a Sweet Life

Econlady posted:
Julia M. Usher posted:
Great question, and glad you posted it. Agree with @Econlady - don't negotiate on price. If any order is unprofitable, I wouldn't do it. (At $48 per dozen, I think you're already pricing on the low end of the spectrum. Just think how long it takes you to make and decorate those 12 cookies and what you're earning per hour doing that . . .)
Plus ingredients!

Well, not just that - price is typically set to cover direct labor (her hourly or other wage), direct materials (food ingredients, packaging, and often other costs), allocated indirect costs (overhead), and then all marked up beyond that so that one has money left over at the end of the day to invest in and grow the business. The $48 pricing probably doesn't even cover reasonable labor costs . . .

1/6/1911:12 PM

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