What Does It Really Cost to Make Your Product? | Festival Geeks Episode 5

You know what you paid for the materials. But do you know what your product actually costs to make? In Episode 5 of Festival Geeks, Michael Priest begins the Know Your Number™ Pricing Workshop by walking through the costs many new festival vendors overlook when figuring out what a product really costs. Using a simple product example, we work through: • Delivered replacement cost of materials • Products that don’t make it to sellable inventory • Small production supplies and consumables • Utilities and machine-use allowances • Product-specific equipment costs • The value of your production labor Our example starts with a product that appears to cost $8. By the end of Episode 5, that product costs $14.44 just to make. And we still haven’t paid to sell it. Episode 6 continues the workshop with event fees, travel, selling labor, business expenses, card-processing costs, and the other things your price has to carry. FREE KNOW YOUR NUMBER™ PRICING WORKSHOP Follow along with the free 2-page Pricing Worksheet and 5-page Line-by-Line Guide: https://festivalgeeksmedia.com/pages/... More free vendor tools and Festival Geeks resources: https://festivalgeeksmedia.com I’m not going to tell you what to charge. I’m going to help you understand everything your price has to carry. Festival Geeks Real Stories. Real Lessons. Real Results. #FestivalGeeks #FestivalVendors #VendorTips #ProductPricing #smallbusiness 00:00 What your price has to carry 01:40 Know Your Number Pricing Workshop 03:28 Our example product 05:00 Materials and replacement cost 07:59 Your sellable batch 10:30 Production costs people forget 16:08 Your labor is not free 19:28 What our $8 product really costs 20:54 You still haven't paid to sell it 21:54 Episode 6 preview