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Pricing
“Work smarter, not harder”
Pricing is the core of your business and every new business owner wants to make sure he/she is charging
the best price for the most return. After all, you got into this business to make money and support your family.
One thing is important to remember, pricing must be consistent with an image. Don’t under sell yourself, or
you’ll cheapen your image. You are providing a service and a product, not just a product.
Cost of Business
One of the first steps to establishing a price is to know how much it costs to run your business. Make a list
of all your business expenses over the course of a year. List fixed expenses, that is, expenses you know will
be constant from month to month, and variable expenses which fluctuate from month to month. For variable
expenses just try to estimate how much you believe it will cost and then keep track of these expenses on a
spreadsheet and adjust them if necessary.
Cost of Business
Fixed Expense
Variable Expense
Machine Payment
Labor
Loan Payment
Production Supplies
Rent
Miscellaneous
Advertising
Insurance
Office Supplies
Postage
Maintenance/repairs
Salary
Utilities
TOTAL ANNUAL
ESTIMATED
EXPENSES
Professional fees
Miscellaneous
Annual Estimated Expenses ÷ Number of Weeks Working = Weekly Overhead
÷ =
To Determine Hourly Cost
Hours of production per week (time the machine is running)
Weekly Overhead ÷ Weekly Hours of Production = Basic Hourly Cost
÷ =
A
B
A
B
C
D
Summary of Contents for GS1501
Page 30: ...GETTING STARTED 28 ...
Page 31: ...GETTING STARTED 29 The Control Panel Display ...
Page 62: ...EMBROIDERY BASICS 28 Notes ...
Page 64: ...MACHINE BASICS 2 ...
Page 65: ...MACHINE BASICS 3 ...
Page 70: ...MACHINE BASICS 8 ...
Page 71: ...MACHINE BASICS 9 ...
Page 78: ...MACHINE BASICS 16 Notes ...