Get To Know What Your Product Profit Margin Really Is
The Creative Flow Podcast
English - December 02, 2020 15:18 - 18 minutes - 8.34 MB - ★★★★ - 4 ratingsDesign Arts Business Entrepreneurship authentic anxiety business businesses confidence creative forecasting innovation motivation productdevelopment Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
This Elevate Your Curiosity episode is all about your product profit margin.
When I work with my 1:1 retail mentoring clients, one of the first things that come up is we look at their profit margins and how much money they are actually making.
You need to have a good profit margin on your products because this is the only place where your retail business is going to make money. The difference between what you sell your product for and what it costs you to make it. This profit is where you are going to make your money. And ensure that your business is a business and not a hobby.
You're looking for at least a 60% profit margin on each of your products. And if you want to wholesale, this needs to be 70 to 80%.
It's vital that you don’t just pluck a number out of thin air. But really think about how much you sell your products for and then what are all the costs that go into this product too.
Let me know your thoughts on this episode over on Instagram @arnoldandbird.