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SHOW NOTES

How to Set Prices

 

  • Mark items up at least 100% if not 150%
  • In other words you double the cost at least
  • So if it costs $1, you sell it for $2 or $2.50
  • Your profit margin is 50%
  • Small numbers make a big difference because you’re buying in bulk
  • You are selling in bulk over time
  • Water is the exception and sells for more than double the cost
  • You can always lower the price, but it’s harder to raise it!

Where to Buy Products

 

EXAMPLE: LENNY AND LARRY'S COOKIES...

 

  • Shop on Amazon but...be careful
  • Use local distributors if they exist
  • Use National distributors to get great discounts
  • Case study: Lenny and Larry’s cookies. Local store VS National distributor.
    • $25.95 at local store
    • $24.99 on Amazon.com  $24.99 / 12 = $2.08
    • $19.95 from Muscle Foods USA $19.95 / 12 = $1.66
      • 5 boxes per machine. 3 Machines = 15 per month.
        • Amazon 15/month = 374.85
        • Muscle Foods 15/ month = 299.25
          • Year for Amazon = $4,498.20
          • Year for Muscle Foods = $3,591
            • Savings! $907.20 per year.
              • That’s with only one product with only 3 machines.
              • Imagine if you had 30 machines.
              • Amazon = $44,982 per year
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