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Now, let's talk about pricing. Notice here that I've got my price list, and you might
think, "Man, how did he decide exactly how much to sell them for"? I've got CD's here,
my "normal CD's", I call them, for $10. I've got cheap CD's, some for $3, that's this one
over here. I've got the $5 CD's which are these two, these are my solo CD's. And then
I've got Girls T's, I've got Unisex T-shirts, I've got stickers, and two are posters. People
always love bargains, so I built in a couple of bargains in here, those are my cheap CD's.
They also happen to be the CD's that either didn't cost anything to make, or they don't
sell as much as the other ones. So if I make them cheaper, I sell a few more of them, that's
really great because selling five of these at $5 is better than selling one of them at
$10. The other CDs, $10, you want to make sure that you make a profit on them, right?
These CDs, most of them cost about $3 to make, so if I sell them for $10, well one, that's
less than what they would normally pay in a retail store, they are $15 or $16, or $17
or $18, sometimes $12, whatever, it's less than they're paying in a retail store, but
I'm still making a real healthy profit off of them. The same is true for these T-shirts.
These T-shirts, all of them, the ones that cost $10, they all cost less than $4 to make.
If I get close to $5, I'll probably still sell them for $10. The Girls T-shirts, for
some reason, sorry ladies, but they cost more to make your T-shirts. The companies just
price them that way, and it's a really horrible fact of life. Girls, they don't seem to mind,
and they buy them anyway because they go "Oh, it's cute, it looks great and so I'll buy
it!" But that's the way you want to do it. You want to make sure that your markup is
at least double what you paid for it, because otherwise you're not going to make any money.
You're going to be slaving away, and you've got to sell at least half of all the T-shirts
that you bought in order to break even. You don't want to just break even, you want to
sell them all.