Suggested going rate. The manufacturer will often suggest a retail price for products. Most often used in manufacturing or retail businesses, this strategy calculates the total cost of the product and adds a percentage for profit. The most difficult part is to calculate total cost. Only at the cost per unit of product rather than at the total costs of doing business.
Price is calculated by adding a percentage to that direct cost.
Either way, make sure the prices cover all your costs of being in business. This method looks at what the competition is charging and charges accordingly. Put a Price of Your Time FREE and low-cost assistance for small businesses is available from your local Small Business Development Center . This document was prepared by the San Joaquin Delta College Small Business Development Center .