Products are

1. Lip gloss or lipstick with SPF

2. Custom facial sheets you can make online or in store pickup and have it send to your home based on your needs

3. A foundation sunscreen

Price

Provide a full analysis of the price point of the product/service.

Based off market research develop a cost sheet that displays the cost of your product/service from production/manufacturing or materials/equipment required. Including shipping and develop a profit margin for your business.

Cost sheets of production/distribution

• A Breakdown of pricing of item including raw materials/production/ shipping, distribution, labor etc. Refer to figure 11.3 below
• Is it fair or competitive pricing?

Transcribed Image Text:

Figure 11.3 Cost Components of a Packaged-Goods Product Add: Add: Add: Cost Items Ingredients Packaging (inner/outer) Shipping case Labour Manufacturing Warehousing Total Plant Cost Freight cost Total Product Cost Gross profit margin (40%) List Price Retail profit margin (25%) Retail price (per case of 24) Selling Price at Retail Actual Cost $15.75 1.79 0.68 1.48 0.20 0.34 20.24 1.36 21.60 8.64 30.24 7.56 37.80 1.57 This example assumes a desired profit margin of 40% for the manufacturer of the product and a 25% markup at retail. The manufactured item is a case good that contains 24 packages in a shipping case. After all costs and profit margins are considered for the manufacturer and distributor, the price at retail is $1.57. Figure 11.3 Cost Components of a Packaged-Goods Product Add: Add: Add: Cost Items Ingredients Packaging (inner/outer) Shipping case Labour Manufacturing Warehousing Total Plant Cost Freight cost Total Product Cost Gross profit margin (40%) List Price Retail profit margin (25%) Retail price (per case of 24) Selling Price at Retail Actual Cost $15.75 1.79 0.68 1.48 0.20 0.34 20.24 1.36 21.60 8.64 30.24 7.56 37.80 1.57 This example assumes a desired profit margin of 40% for the manufacturer of the product and a 25% markup at retail. The manufactured item is a case good that contains 24 packages in a shipping case. After all costs and profit margins are considered for the manufacturer and distributor, the price at retail is $1.57.