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Posts by jason_kraft

We recorded expenses and income with QuickBooks. If you have basic accounting knowledge it's pretty easy to set up, if not you can hire someone to do the initial setup for you so all you would have to do is enter receipts for expenses, income from orders, and bank deposits. With all your info in QB it is much easier to do your taxes. The IRS's definition of business vs. hobby has nothing to do with the definition of the health dept or the city. You do not have to be...
If your target market is full of "cheap cake ladies" who produce quality products, then you absolutely do need to use this information to determine market price, which (based on your costs) will probably result in you searching for a different market.
In the pricing method I posted, you are correct that individual costs are not used to directly set specific prices, but they have the just as important task of determining whether or not it is worth setting prices at all for a certain product and target market. For example, the last paragraph of my post tells you that if market value is below $X (where X is your cost at a certain minimum wage level) then the product is not worth your time to sell, if you don't know the...
Check out the pricing formula link in my signature below...add up the cost of ingredients, the cost of your time, and allocated overhead (insurance, license fees, table rental fees, etc. on a per-order basis) for each item or set of items, then do some market research to determine market value. You may need to adjust market value downward depending on the expected audience and budgets for candy at the fair.
Agreed, your method works very well for entrepreneurs who want to keep things small. If and when they reach a point where they need to hire employees they can use the more detailed process at that point.You would think so, but we've both been around here long enough to see plenty of examples to the contrary.
They now have a web-based cloud version (in fact it is the only version now available) so it will run an iPad. Cost is $149 + $20 year after the first year.
Knowing your cost is integral to costumeczar's method. In her case costs (excluding labor) are 40% of the target price based on market value, without having this information it's impossible to determine how much you will actually bring in after expenses.Her method is slightly simpler since it combines wage and profit margin, but there are some cases where it is important to work out these numbers separately (for example, if you will be bringing in another decorator you...
No idea, I would recommend talking to a material science expert. You'd probably have to get something custom made, and given the requirements for keeping the snow from melting and providing enough clarity to actually see the snow cake it would probably cost at least $1000.Or you could use fake snow:
I wouldn't say costs were emphasized, to me it's more of a 50/50 split between factoring in cost and value to set prices (e.g. targeting cost + markup as a price and using value as a check) and determining whether it's worth it to sell a specific product to a specific market. Everyone needs to know their costs anyway for tax purposes.
If you are serious about this I would get started with a flurry of advertising, otherwise you might be iced out of the market.
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