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Reply to "Starting Out and Often Buying Cutters"

Congrats on your first orders. May there be many more to come!

I actually pretty firmly disagree with what some of the others have said here. Pricing should be set so that, over the long haul, you make enough profit to over overhead and to have money left over to fund tool purchases and other investments in your business. No business can be sustainable if prices aren't set to cover all costs and to allow for reinvestment in the business. You may find you need to make an initial cash outlay (or more) to acquire tools for startup, but your pricing should be set so that you are paid back for these investments over a reasonable period of time.

I'd also caution you about using someone else's pricing chart, no matter the author of the chart. Pricing is very much a function of how long it takes YOU to decorate YOUR designs, the complexity of YOUR designs, and YOUR overhead structure, all combined with what prices YOUR local market is likely to bear. 

We have many great articles on the fundamentals of pricing for profitability here on the site, most under "The Business of Cookies" section of the blog. I'd encourage you to check them out.

Best of luck with the new venture!

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