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The is not always straightforward. After all you need to include not only the direct costs of each product but also the indirect costs involved in running your business reaching customers and so on. So lets look at an example to make it clearer. Lets say I run a Tshirt business. My process involves buying plain Tshirts adding my designs and selling them online. Im going to calculate my overall costs using some purely hypothetical numbers. Each plain Tshirt costs me to buy and the printing adds another per shirt. So the cost of the basic raw materials is and on top of that.

I spend on average minutes of my own time

I value at an hour so thats another in labour costs. But on top of that I have fixed costs. I spend a month on my design Slovakia Business Email List software and a month on running my website email newsletter etc. I spend a month renting an office space and a month for other overheads. So thats overall in fixed costs. On average I sell Tshirts a month so the cost of all those overheads is exactly per shirt . Thats the beauty of hypothetical numbers So right now my cost per shirt is.

So is the minimum I can charge for each T-shirt

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If Ive calculated my costs correctly everything above that will be clear profit. Note that this is a simplified example. In reality a business Costa Rica Phone Number would probably have a lot more costs such as sales and marketing the time spent on the original designs etc. Make sure that you list everything and account for it all. Now I simply apply a markup to each shirt so that I can generate a profit. Thats the purpose of being in business after allnot to cover your costs but to make a profit.

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