hello guys i hope you are doing really
really well today i am going to show you
how to price your product or
how to set a selling price for your item
so first thing that you have to do you
have to uh
calculate the cost so how you can
calculate the cost you have to add a
material
okay so the material cost
plus you have to add the labor
okay and then plus you have to add the
overhead
so guys material is the um the things
that you need to
make your product the material and the
other thing is
labor for example um obviously there
will be a labor involved you have to pay
someone a salary
so you have to add that one and then the
last thing is
overhead so overhead is basically the
taxes
or some kind of fees for example you
list your item
on a website you have to pay them a
certain amount of fees
so that is considered as overhead
so when you add them together you will
get your
cost so first step you find the cost
so now we will put the values we just
put the
assumption so for example our material
cost us let's say 10 or 10 rupees
okay uh plus uh the labor uh
cost us let's say eight dollars or eight
rupees
and then the overhead uh cost um
is let's say two dollars okay so this
total will be 20
okay so 20 or 20 rupees is our
cost so guys in the next step what we
have to do
we have to mark up our cost
twice so why we are doing it two times
for the first time we will get our
wholesale price
and then in the second time we will get
our
selling price or retail price okay so
first step that we have to do is we will
multiply
cost
with markup
okay so this will get our
wholesale price
okay guys so uh let's as we already
calculated our cost uh
price is 20 okay then we
multiply it with the markup so markup
let's say we have two
so when we multiply our answer will be
40 dollars or 40 rupees so this is our
wholesale price
okay so this was the first step so the
next step
we will get our retail price so
how we can get the retail price same
thing we have to do
we have to multiply the wholesale price
okay
with markup okay
okay then we will get our retail price
okay guys so as we already calculated
here our
wholesale price which is 40 so we will
put the 40 over here
our markup is 2 okay
so 40 multiplied by 2 is equal to 80
okay so guys this is our retail price
if you want to know the markup i already
made a video about
uh how to find out the markup what is
markup so markup is basically
a profit margin it is a profit margin so
most of the time it is between two to
two point five or sometime it is
more it depends so this is how you can
calculate
your retail price so uh sometimes
um some people they got confused and
they think only the material is the
cost price so no not only the material
but you have to add the labor
plus you also have to add the overhead
in order to get your
cost price so then you will get your
exact cost price
so once you get the cost price it will
be very easy you have to multiply it
with the markup
for the first time you will get your
wholesale price
okay and then uh for the second step
because you have to calculate your
retail price so simply and just uh
multiply your wholesale with the markup
again
and then you will get your retail price
so here you know we already
get our answer so guys this is for
today's video i hope you liked the video
i hope you enjoy the video
so please do subscribe to my channel
guys thank you very much