I intend to sell my cards to the audience of parents. Though they are designed for children, a greeting card is typically bought by someone else, for them. I need to price them accordingly, so they I am able to make a good profit, around 20-25 percent. To do this I first need to gather the costs of the materials that went into each card. In this case, the card, envelope and paper on which it was printed on (including ink).
Card + envolope – £5 per 10 card and envelope pairs
50p per card and envelope.
1 colour print (paper + ink) – 5p
Each finished card cost 55p to make
Following guidelines from http://kateharperblog.blogspot.co.uk/2012/05/pricing-your-cards.html ;
15-35% of the price should be for material costs (55p)
10-20% the labour of making the card
10-20% overhead costs (including travel, supplies, test/other printing)
(20% for sales representative if selling to a retailer)
If I sell my cards for £1.60 each (I worked this out by finding a number of which 55 is, at most, 35 percent of it);
56p (35%) makes up the material costs (extra 1p goes to profit)
32p (20%) production labour
32p (20%) overhead costs
40p (25%) profit
In total I will make 41p profit from £1.60