Today I want to talk to you about mistakes that I see product-based business owners make over and over again.
I've compiled a list of some of the top mistakes that I see. I wanted to share them with you, so hopefully, you won't make any of these mistakes, and if you are making them, you can fix them.
First mistake - Not pricing products so that you have enough gross margin in your product
So what do I mean by gross margin?
It’s all about pricing your products correctly. I like to start with my product and figure out what is the perceived retail value of this product. I take retail price and divide that by two, and that would be your wholesale cost/price. Then you divide wholesale by three, and the cost of goods for your product shouldn’t be more than that.
Sample- Retail Cost is $10, divide by 2 = $5 which is your wholesale cost, now divide the wholesale cost by 3 = 1.66 your cost of goods shouldn't be any higher than 1.66 or...
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