Inema Consults

HOW TO COST AND PRICE YOUR PRODUCTS.

Amaka is into bag business.

Last week she ordered 1000 bags from Dubai at the cost of N2,500 per 1.

She in addition spent N100,000 as shipping cost, N80,000 as custom duty.

She paid a truck N30,000 to deliver the shoes to his shop.

Now at what price should Amaka sell each pair of shoe.

In her shop, she pays rent at N300,000 per annum. Sales girl salary of N20,000 per month. Electricity bill of N10,000, his own salary of 50,000, other expenses of N20000.
From her past performance, she estimsted her monthly sales units to be 500 bags per month.
*****""""""****

First is to determine the actual cost of 1 pair of shoe.

Purchase price: 2500*1000=2,500,000.

Other buying costs;
Shipping+custom+transport
100000+80000+30000=210,000
210,000/1000=210.

So total purchase cost(direct cost); 2500+210=2710.

Her other business cost(indirect cost).
Rent= 300000/12= 25000 monthly.
Rent + salary+electricity
25000+20000+10000+50000+20000=125000.

Indirect cost per unit
Total indirect cost/daily sales volume.

= 125000/500 units =250.

This will then be added to 2710 to get 2710+250= 2960.

Amaka has a policy of adding a mark-up of 50% on the cost to get her price,

50% of 2960= 1480.

So the least price she will sell each pair of shoes becomes

2960+1480=N4,440.

The things you must take into consideration in costing and pricing your products include
Direct cost of the products
Indirect cost
Edtimated sales volume
Mark-up.

*YOU CAN STILL WIN*

*Welcome to the end of the first half of 2020. As it stands, you are either winning, losing or playing draw. All thanks to YOUR ACTIONS or INACTION in the last six months.*

*The second half has started. WHAT WILL YOU DO WITH IT?*

*You can still change the game in your favour if you take the right ACTION and make necessary changes.*

*YOU CAN ONLY HAVE SUCCESS OR EXCUSES*

*Quit the status quo!*

Trust we are doing great and keeping warm and safe?
Please let note, it's getting really windy and cold nowadays.
The heat and sun did protect us a lot from d Corona Virus Spread cos d virus didn't thrive well at high temps, but now d temp is going low we have to be more careful.
We are entering the natural catarrh, cough and sore throat season (due to rain and cold weather). So, let's keep warm, drink lots of lime( either in tea or in warm water), ginger, garlic and pepper soups with our hot local spices. We should also note that our immunity can drop during raining season due to catarrh, cough and sore throat.
So using the suggested natural herbal drinks and hot spices will help to boost our immunity against COVID-19 and other cold symptoms.

Vitamin C and D also.help to boost immune Systems. Oranges are very rich in vitamin C and vitamin D you get with some exposure to sunlight.

Be wise and observe all the guidelines of wearing your nose masks in public places and keep a distance from people. Remember everybody is vulnerable and Covid 19 is no respecter of anyone. Always wash your hands, use sanitizers and keep safe. Please stay safe... We have overcome🙏