Profits & Growth: "I know I'm making a profit, but I don't know where it is."

Kind of. You want to try and set aside your costs when setting prices— don’t anchor off of your cost. Price on value to the consumer and consistency with your positioning, then make sure you’re not too far above the competition & not losing money.

I have products where my gross margin is 50%. AKA I am selling for double my cost. I basically only break-even after operating expenses, though. That’s fine, because these products enable sales of my high-margin goods. ‘Cost leaders’

I also have products where I 4x or 5x my money. My margins are never even across products because I am not anchoring off costs.

Blended together, I run 70% to 75% average gross margins. This beats the industry standard of 65% for a brand, but it’s a little tight given we are playing distributor, too.

Forgot to link this thread, too. It goes into more depth on my last paragraph. PART 3 - Fair Retail / Consumer Pricing [HBMMDB] - #17 by COVID-69

Together most of what I know about pricing.

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