ribeye Posted January 3, 2017 Report Share Posted January 3, 2017 Happy new year to everyone. Ive tried to search for a formula to price my baits in the search tab without any luck. Can anyone help me? Id really appreciate it. Quote Link to comment Share on other sites More sharing options...
POV_Fishin Posted January 4, 2017 Report Share Posted January 4, 2017 On 1/3/2017 at 11:14 AM, ribeye said: Happy new year to everyone. Ive tried to search for a formula to price my baits in the search tab without any luck. Can anyone help me? Id really appreciate it. You need a few things to have an accurate price. Add the cost of your molds, plastisol, colorants, glitter, additives and anything else involved. Sum that up and make a test run of a pint or whatever you can afford to do. You need to know how many of the specific baits you can make per gallon of plastisol. So for an example my mold cost $50 and I bought 3 colors at $4.00 a piece, 3 glitters at $4 a piece and a $70 gallon of plastisol. (Fictional numbers for the sake of demonstration). 50+12+12+70=$144 So let's say you're able to make 25 stick baits out of 1 cup of plastisol. There are 16 cups in a gallon. So 16×25=400 stick baits. So you divide total cost $144/400 stick baits. Each bait cost you $.36. This is your break even cost. Please understand that you won't make a dime until you find out three key factors. What's your time worth? What is the cost of packaging? How many baits per hour can you make? A good number to go by is 40% increase on your break even cost. Obviously the mold is a one-time expense. The reason I believe that you should keep including it on the cost is simple. You pay one off and have it built in to add more molds without having prices go up and down. Back to the numbers. So we know each bait cost you $.36 a piece. So a bag of 10 cost you $3.60. Add the price of packaging and your 40% you'll be looking at $5.04 per bag. Remember the more you buy the lower larger runs cost. Set a price that allows an increase of stock, without breaking the bank. Feel free to ask more questions. 2 Quote Link to comment Share on other sites More sharing options...
SlowFISH Posted January 4, 2017 Report Share Posted January 4, 2017 9 minutes ago, POV_Fishin said: You need a few things to have an accurate price. Add the cost of your molds, plastisol, colorants, glitter, additives and anything else involved. Sum that up and make a test run of a pint or whatever you can afford to do. You need to know how many of the specific baits you can make per gallon of plastisol. So for an example my mold cost $50 and I bought 3 colors at $4.00 a piece, 3 glitters at $4 a piece and a $70 gallon of plastisol. (Fictional numbers for the sake of demonstration). 50+12+12+70=$144 So let's say you're able to make 25 stick baits out of 1 cup of plastisol. There are 16 cups in a gallon. So 16×25=400 stick baits. So you divide total cost $144/400 stick baits. Each bait cost you $.36. This is your break even cost. Please understand that you won't make a dime until you find out three key factors. What's your time worth? What is the cost of packaging? How many baits per hour can you make? A good number to go by is 40% increase on your break even cost. Obviously the mold is a one-time expense. The reason I believe that you should keep including it on the cost is simple. You pay one off and have it built in to add more molds without having prices go up and down. Back to the numbers. So we know each bait cost you $.36 a piece. So a bag of 10 cost you $3.60. Add the price of packaging and your 40% you'll be looking at $5.04 per bag. Remember the more you buy the lower larger runs cost. Set a price that allows an increase of stock, without breaking the bank. Feel free to ask more questions. Really good way to look at things... and the biggest question/variable in there is "what is your time worth"..... Have a bunch of friends that keep telling me to make baits and sell them.... I'd either be poor or out of business if I put the time I do into a mold then tried to sell baits!!!! Maybe after I hit lotto!! LOL! J. Quote Link to comment Share on other sites More sharing options...
Baitjunkys Posted January 5, 2017 Report Share Posted January 5, 2017 one way to look at it. if you price in your mold endlessly you will never get ahead. price your baits on time and consimables. at the end of the month deduct your mold or molds one time. just like paying rent. In the end molds are not cost of goods sold. they are equipment. Quote Link to comment Share on other sites More sharing options...
POV_Fishin Posted January 5, 2017 Report Share Posted January 5, 2017 23 minutes ago, Baitjunkys said: one way to look at it. if you price in your mold endlessly you will never get ahead. price your baits on time and consimables. at the end of the month deduct your mold or molds one time. just like paying rent. In the end molds are not cost of goods sold. they are equipment. Please elaborate on this. By figuring the mold in endlessly you'll always be ahead because you're charging for a 1 time cost. If you produce enough baits to use 2 gallons of plastisol you've paid for a mold you don't have because the cost was figured in initially. So that $50 cost you figured in is actually profit, or wiggle room to buy another mold to increase production. Which in turn lowers your cost by decreasing time invested. So in no way at all is it irresponsible to do as I directed. Quote Link to comment Share on other sites More sharing options...
Baitjunkys Posted January 5, 2017 Report Share Posted January 5, 2017 If you can sell them for 5.00 a pack you can get ahead on paper. but when you get more realistic and are selling at 3.00 a bag, pricing in your mold your gonna be loosing money. to keep accurate track. you need accurate costs. Quote Link to comment Share on other sites More sharing options...
Baitjunkys Posted January 5, 2017 Report Share Posted January 5, 2017 (edited) never said it was Irresponsible. But it surely isnt accurate cost figuring. Edited January 5, 2017 by Baitjunkys Quote Link to comment Share on other sites More sharing options...
SRJ Posted January 5, 2017 Report Share Posted January 5, 2017 11 hours ago, Baitjunkys said: one way to look at it. if you price in your mold endlessly you will never get ahead. price your baits on time and consimables. at the end of the month deduct your mold or molds one time. just like paying rent. In the end molds are not cost of goods sold. they are equipment. Cost, of anything, is figured this way. Value 'purchased' minus value 'sold' equals 'actual cost'. A $100.00 mold can be sold for $80.00 used quite readily. So actual cost is $20.00 Quote Link to comment Share on other sites More sharing options...
smallmouthaholic Posted January 5, 2017 Report Share Posted January 5, 2017 (edited) Molds can and are a deprecating item on you taxes. What about realistic office/shop expenses ? Phone ,internet,domain name protection, utility expenses and stationary expenses. It's all part of the picture and the bottom line! Edited January 5, 2017 by smallmouthaholic 3 Quote Link to comment Share on other sites More sharing options...
Baitjunkys Posted January 5, 2017 Report Share Posted January 5, 2017 my point is, if you factor it in as your finished product endlessly, you will never have a accurate set of books. 1 Quote Link to comment Share on other sites More sharing options...
DaveMc1 Posted January 5, 2017 Report Share Posted January 5, 2017 As Smallmouth said, molds and other equipment are items you write off on your taxes (depending on where you are and the laws this you can write them off over a 5-10 year period) When pricing to sell you need to know your raw material cost by weight, plastic, color, flake, scent, salt etc, package and label costs as well. I always throw in a packaging cost per bag as well. That will give you a base line of what you have into each package. From there you will have a good idea of where you can price it. As you are the one manufacturing the product I certainly hope you are making a lot more than 40%. Also another thing that will help, look up the difference between "markup" and 'margin", in retail you will always want to calculate pricing based on margin. 1 Quote Link to comment Share on other sites More sharing options...
smallmouthaholic Posted January 5, 2017 Report Share Posted January 5, 2017 You can detail all of your operating & material( including development and maintain a website )cost down to the penny. That said, the market will only pay so much for a product. You have to establish & separate yourself from the mega injection companies w/ superior ,quality products. This requires years and more $ then you'd ever expect to spend. A small,well organized hand injection business is most difficult to fully support the cost of a basic lifestyle.Distance yourself from the gimme,gimme crowd and consignment stores and you'll have some extra income @ the end of the year. Self-satisfaction from creating your own ,successful product w/ an expanding,repeat customer base is paramount to your success. The cost of multiple cavity injection molds are expensive but they work & produce for a lifetime as plastisol cost keep re-occurring month after month after year Quote Link to comment Share on other sites More sharing options...
Driftwood Posted January 5, 2017 Report Share Posted January 5, 2017 Don't forget the FET. The tax is due on any product you make and sell. Also, any stock left at the end of the year is taxed ( I live in ky.) as sellable inventory. 1 Quote Link to comment Share on other sites More sharing options...
smallmouthaholic Posted January 5, 2017 Report Share Posted January 5, 2017 1 hour ago, Driftwood said: Don't forget the FET. The tax is due on any product you make and sell. Also, any stock left at the end of the year is taxed ( I live in ky.) as sellable inventory. The 10% Federal quarterly excise tax ( form 637) is deductible from your gross profits! Quote Link to comment Share on other sites More sharing options...
Baitjunkys Posted January 5, 2017 Report Share Posted January 5, 2017 Inventory is only taxed one time tho. Quote Link to comment Share on other sites More sharing options...
hpssports Posted January 5, 2017 Report Share Posted January 5, 2017 Yep, that dreaded end of the year inventory & property tax. Had to do all the inventory last weekend. Glad it's only once a year. Quote Link to comment Share on other sites More sharing options...
FrogAddict Posted January 5, 2017 Report Share Posted January 5, 2017 I found it interesting that I have to have a Fed ID number to even sell at a local craft fair and I then have to pay FET. Makes me want to stay a hobbyist. 1 Quote Link to comment Share on other sites More sharing options...
mark poulson Posted January 6, 2017 Report Share Posted January 6, 2017 5 hours ago, FrogAddict said: I found it interesting that I have to have a Fed ID number to even sell at a local craft fair and I then have to pay FET. Makes me want to stay a hobbyist. Making baits for money took all the joy out of it for me. 1 Quote Link to comment Share on other sites More sharing options...
edgecrusher Posted January 6, 2017 Report Share Posted January 6, 2017 (edited) On 05/01/2017 at 2:12 PM, Baitjunkys said: one way to look at it. if you price in your mold endlessly you will never get ahead. price your baits on time and consimables. at the end of the month deduct your mold or molds one time. just like paying rent. In the end molds are not cost of goods sold. they are equipment. Molds are very liquid. Hell I've bought used molds and sold again down the track at profit. i have a spreadsheet, I record two weights bait weight in grams (might weight 10 at a time and divide to 1) and I weight one shot - i.e. If it's a 4 cav I weight 4 baits on the sprue. i use the finished price to determine if I'm making cash (figure in packaging too). but the shot weight helps when working out how much plastic to cook up. Edited January 6, 2017 by edgecrusher 1 Quote Link to comment Share on other sites More sharing options...
JBuff Posted January 6, 2017 Report Share Posted January 6, 2017 15 hours ago, mark poulson said: Making baits for money took all the joy out of it for me. So very true, the enjoyment derived from being able to create at will not because it was "ordered". Worst is making the same color(s) over and over with little to no variation has all but killed creativity. Quote Link to comment Share on other sites More sharing options...
FrogAddict Posted January 9, 2017 Report Share Posted January 9, 2017 I think the stress of deadlines plus the redundancy would equal no joy! 2 Quote Link to comment Share on other sites More sharing options...
ribeye Posted January 18, 2017 Author Report Share Posted January 18, 2017 thanks for the info. Quote Link to comment Share on other sites More sharing options...
