Pricing And Taxes
Sunday November 5, 2006
An informative discussion is taking place in the forum all about taxes and pricing your work. Remember that you should always add sales tax after the sale. Customers do not mind paying the tax at the end of the sale. If you include tax in your pricing, it can make accounting a nightmare! When setting your prices you should always remember to pay yourself for labor as well as make a profit for your business: Raw materials + labor + profit margin = retail price. If you sell at wholesale events, make sure that you can divide your total by 50% while still making money. If you cannot, you need to adjust your pricing.


Comments
Remember that some states do not allow you to include sales tax in the sale price. I adjust my price depending on which state I am selling in so when tax is added the price comes out to an even dollar. For example, I charge 7.63 and when I collect 5% tax it comes out to 8.00. My signage reflects this and people appreciate not dealing with pennies.