Costing and Pricing

[mearah]

Hi everyone,

I am not sure if a familiar thread about this topic has already been created, if there is please let me know.

We have an online business and now we are also starting to join bazaars. We buy bags, rebrand it and sell it.   I must admit na nahihirapan ko mag determine ng selling price ng mga items namin. We started with a very low price than what is offered sa market and I must admit ok ang benta but di cya enough to cover the overhead expenses. Like ako wala pa akong sweldo non. My questions are:

1.  Ano po ba ang formula para mag setup ng selling price na profitable sa business and at the same time covers ang overhead cost? Should I also take into consideration ang market price ng same na item?

2. When we say market price po yung market prce po ba online or yung price po dito rin sa province? Kasi po yung mga competitor namin may mga tindahan po at mga empleyado, sa amin naman po 3 lang kami.

Appreciate po yung mga input ninyo.

[Workforce]

Hmmm di kasi ako gumamit ng computation... dapat alam mo lang supply and demand ng market. Kapag mataas ang demand then ikaw lang meron medyo taasan. Kapag maraming kalaban naman ibagsak ang price kahit wala na masyadong kita. Nasa iyo talaga yan. And siyempre what im selling is un hilig ko talaga kaya kahit nakapikit ako alam ko kagad ang dapat na presyo ng item ko.

[quennna]

costing --> list price ---> selling price
costing + mark up (%) = selling price

lista mo muna lahat ng 'expenses mo'
from your items, transpo, miscellaneou etc....
para makagawa ka ng costing... then idivide mo sya how much items meron ka per item per category, para malaman mo kung ilang for example bag, ang dapat mo mabenta para magkaprofit...

gawa ka muna computation bago sumabak sa laban.. unless na lang experience ang habol mo

[mearah]

Thank you sis quenna and Workforce sa advise. As for the items na dapat kong mabenta to get a profit what if masyadong maraming item of each kind. Like sa akin: bags, pants, jacket etc.

[Tea97]

applicable pa rin yun sinabi ni quennna - dapat alam mo cost per product mo, and yun expenses mo -- sa ibang stores, meron silang coding na ginagamit, so each time may bagong inventory, nilalagyan nila ng code bawat item, para alam ng tindera magkano ang cost, and hindi puede tumawad below that price. So kung sobrang daming item na iba-iba, gawa ka ng code for 1 to 10 assigning a unique symbol or letter - then you know your cost price per item when selling the items.

Now for the overhead expenses (fixed costs) such as staff wages, rent for puesto. Since fixed na yan, make sure you know the total monthly costs. Sa pinakasimpleng approach, divide mo total mo ng number of days na bukas ang tindahan mo. So if 20 days ka nag titinda, and cost mo is P20000/20 = P1000 per day. So kelangan mo tumubo at least P1000 per day. 

Importante na nagrrecord ka ng sales mo and cashflow everyday, esp kapag maraming transactions - kasi kamala-mala mo, nagpapatakbo ka ng palugi.

Try mo bumili ng accounting books sa bookstores, yun local publisher ha, para you get an idea how to account for your business. Bili ka na rin ng Ledger, when you buy the books kasi that's where you can record your 'IN' and 'OUT' na transactions.

Puede rin na kapag may kaibigan ka na accountant, paturo ka paano mag set up ng book keeping for your business. Normally yun ganyang tutorial di lalampas ng P10k, and mas mura kapag sa probinsya. Baka libre pa kapag kaibigan mo magtuturo. Good luck and God bless.

[mearah]

^ Sis maraming salamat sa reply. I am curious about the coding and how it works.

You said a lot of good points sis Tea97, I really appreciate the advise. I think this is not something that I could just learn by myself, may really need the help of an accountant or bookeeper na talaga.

[Tea97]

Just happy to help

Re coding, kapag may bago kang stocks, lagyan mo ng tag each item para alam mo ang cost price. Para naman di alam ni buyer yun cost price mo, gagamit ka ng code where you assign a unique symbol or letter per number from 0 to 9 and '.' 

For example: KAMBINGSHOP=1234567890. Importante rin yun . para alam mo yun cents. So kung ang cost price mo e 18.50, ang ilalagay mong code is [textspeak!], where K=1, S=8, .=P, I=5, O=0. Dapat memorise mo yan, para kapag kausap mo customer e alam mo yun cost price.

Mahirap talaga kapag maraming iba ibang items, the above code works well with a lot of items - lalo na kapag tiangge set up or merong tawaran.

[mearah]

^ sis thank you for going into details about the code. I saw a number of sellers who has that and I thought yung code is the selling price instead of the buying price.

[blakesiy]

Ang rule of thumb ng golden abc eg Penshoppe, Memo, Oxygen is at least x4 ng cost. This will make all your hassle worth it. Pero tama din ang iba, you have to know the supply and demand. Kung uso ang isang design then wag agad tawad.