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Pricing Your WAHM Made Diapers
So how do you figure your wholesale and retail prices for your diapers? Tereson of Fuzzi Bunz acclaim gives us some insight.
First measure your product, including leftover materials. If your diaper is 21 inches long and 6 inches in the middle, but you waste 12 inches in the process of cutting 6 in crotch, then add the 12 extra inches of whatever fabric you use.
Take all of the square inch measurements of your raw materials and multiply it by the cost per square inch of raw material. To figure out your square inch cost take the total price per yard (say $4.00) and divide it by your total square inches per yard (which will be likely 36x60 if you are using 60 inch fabric, 36x45 if 45 inch fabric)!!
Don't forget to add in the cost of elastic, snaps, velrco and whatever other raw material you use in the construction of your product. The formula is still the same, except in linear products like elastic and velcro, which will be just the cost divided by the length.
After you have that base cost double it. This will give you your wholesale cost. After you have your wholesale cost, double it again...this is your retail price.
Now you are probably saying "You are nuts, I can't charge $25.00 per diaper!" You are right, you can't. So that is where you decide do I go 50%, 45%, 40%, 35% etc. But try to use the same formula that way you know that you charge a 40% mark up for your wholesale and 40% for retail.
You may have to fudge the numbers a bit, just depending on the market, what you want to charge, and how much you want to make.
I think too many work at home moms just forget about cost of materials and cost of THEIR TIME and just charge market value and wind up making NO money and not even knowing it.
Tereson Thomas - Fuzzi Bunz Diapers - Inventor
Reprinted with permission
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