typically how much of a margin is reasonable for a product to sell for in order for the company to sustain. Now that I'm thinking about it how do companies overcome having to pay so much for the necessities to run a business and turn a profit??
Ex. selling shoes for 130 dollars made in america after every cost is accounted for is 50 dollar margin too small or would typically companies prefer for the margin to be near $70-80 for the ability to expand faster, granted that the output was a 100- 150pairs a week.
Besides the cost of materials, employee wages, taxes, accounting, cost of keeping the building running, marketing what are the other costs that aren't so obvious and how are they calculated.
Ex. insurance for company equipment and employees, 401k. Are there any more that I'm not thinking of?
Ex. selling shoes for 130 dollars made in america after every cost is accounted for is 50 dollar margin too small or would typically companies prefer for the margin to be near $70-80 for the ability to expand faster, granted that the output was a 100- 150pairs a week.
Besides the cost of materials, employee wages, taxes, accounting, cost of keeping the building running, marketing what are the other costs that aren't so obvious and how are they calculated.
Ex. insurance for company equipment and employees, 401k. Are there any more that I'm not thinking of?
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