The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

What margins and ratios do you use for product sales?

The Entrepreneur's Forum for learning how to build wealth and financial freedom the Fastlane way!

Say "NO" to mediocre living rife with jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence. Join our forum with more than 70,000 entrepreneurs who are making it happen.
Join for FREE Today
Get the books
Remove ads? Join Fastlane INSIDERS
(Registration removes this block)
Marketing, social media, advertising

Daytraderz

Contributor
Speedway Pass
Feb 11, 2016
67
67
25
Virginia
Hey Fastlaners,

I have been MIA for a minute, finishing up school, getting my company going, making connections. I'll make an update post later, but for now, to the point!

I have two products. One costs $9.75 (a t-shirt) and the other costs $12.50 (a patented product). I am having some problems in my head calculating the finances out for everything and was hoping my fellow entrepreneurs could steer me in the right direction... Here's my questions.
1. What profit margins do you look for?
2. How do I calculate the real price of my product (including taxes, COGs, if i'm missing another one let me know)
3. Do you look for any other ratios/margins that I am not?

Lastly, I have an idea to incorporate my artists for the shirts in advertising/sales... I was thinking about giving him a base fee for each shirt sold as he did the work for free (what would be fair for this, I am thinking 10%), and then upping his return if he directly sells a shirt and/or the patented product.

My biggest issue in my head, and yes i've done my own research, is how can I have this set-up so he isn't an employee? I have thought about doing a work-for-hire contract but am hoping there is a better way to go about this (maybe under the table? Not that I would eeeeevvvvvveeeerrr do this...)

Thanks friends
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

Merging Left

Silver Contributor
Read Fastlane!
Speedway Pass
Jul 20, 2014
397
734
32
You could possibly structure your deal with the artists as a consulting/marketing agreement where they get a fixed amount plus some additional commission/royalty based on direct sales. Talk to a CPA/Lawyer on that one.
 

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Must Read Books...

Explore books recommended by MJ DeMarco and other members of the Fastlane entrepreneurial community.
Fastlane Bookstore
Top