How much should you charge?

Fri, Jul 2, 2010

Uncategorized

When I get new products like sunglasses or accessories sometimes I ask my friends how much they would buy them for. I’ve done this a few time and most of the time they come back with the question  “We’ll how much did you pay for them”. The question is not how much you pay for something it’s what you can sell them for. The actual costs of rayban sunglasses are probably a couple bucks and they sell them for 100 times that. They spend a lot of money on advertising so you believe they are worth a lot more.

So don’t get stuck on how much you paid for your product but how much the market will buy them for.

threadsnotdead How much should you charge?

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Thanks,
Jon Kruse

This post was written by:

- who has written 135 posts on How to start a Clothing Company.

Besides running this blog I also own two clothing companies, Mediocore Clothing and SHRED. I also run Double Dragon Studios with a partner and we do a lot of work for clothing companies making stores, blogs, and myspace layouts. Please send me an email if you have any questions, want to hire me for work, or just want to say thanks.

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  • BryanOmega

    Short and to the point. Nice reminder.

    Thanks Jon

  • Joe

    “Value is what people are willing to pay for it.” -John Naisbitt. Joe

  • detroits own

    I cant wait to start my line, this site is better than any book! not that im dismissing info there haha

  • http://twitter.com/weequotes Wee Quotes

    Excellent point Jon,

    As a web and graphic designer the “wholesale” cost of my product is nothing, because my product is purely my professional time. However I've trained for 8 years to become as good as I am and have made no money over those 8 years in training.

    There are also overheads to consider – heating, electricity, storage, IT, costs in setting up screens for printing, etc.

    Unfortunately the mind-set of the average customer is “it only costs you this, how dare you charge that”. The same consumer who spends $200 on a games console, or $50 on a tee shirt.

    My main custom is from the music industry-local, up and coming bands. They often try to barter by mentioning that they can't afford $100 for a MySpace design, yet spend at least that on a day's rehearsal time weekly..

  • jonkruse

    Very true about the average consumer. They never think of all the things that go into making a product. They just want it for cheap. I guess that's why Walmart is so popular.

  • Snak3s2001

    Awesome post. Very true.

    Mr. Jon. Could you make a post about sponsoring bands and athletes? What's reasonable for a starting company to give away to them? I ask this because I started sponsoring this drummer but he wants everything. Is that how it works? Am I being frugal? Is he being too greedy? I would really appreciate this.

    Thanks.

  • jonkruse

    I've got a post about sponsoring bands search for it on the site.

    He is probably being greedy. What can he offer you? Can he make your more money then the money you are spending on him?

  • Snak3s2001

    Found it. I remember reading about that one post. Yeah, he hasn't done a lot for us. Just promises. Thanks Mr. Jon.

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