Monday, October 25, 2010

Retail Prices and Business

For those of you out there who have not yet ventured into the world of retail I'm going to share with you a change in my mindset towards product pricing.
When I used to look at a product at the store, I would only think of how much it "cost" to make, you know, the materials used in it. And then think of how ridiculously priced things are. And now that my toe is in the water I have had a very real awakening. I have been reading this book called "How to Start a Home-Based Craft Business" and the author, Kenn Oberrecht, gives a very good basic formula for calculating how much each item costs.
Materials + Overhead + Labor +Profit = Price
Seems simple, right?
Labor $10/hour
Time per unit = 5 hours = $50.00
Materials per unit = $8.00
Overhead (indirect costs like your website, lighting, electricity, tools use) = $50 x 10%= $5
Profit = $62 x 10% = $6.20
Price per unit (wholesale!) = $68.20
What?! I seriously didn't ever think about this sort of thing before. I never understood before how many costs are really behind each product! I also realized that my original pricing didn't even include any profit, because I was thinking my labor wage was the profit. Even though the materials in the above scenario was only $8, with the other costs it becomes $62!!
Talk about turning my retail knowledge around! What an awakening!
So how do we have $1 products??? VERY low labor costs...  Which is a whole other topic that I will get into another day.
This past weekend I attended the KBA (Kingdom Business Association) Conference and was rocked (in a good way). I have a greater vision for business than I ever had previously. One great thing that was said by Rick Joyner is about the business advise with which you could never fail. How can you never fail in your business??
1 Corinthians 13:8 he said... "Love Never Fails"
So if you love your products and are passionate about them, you love your employees, you love your suppliers, you love your customers, you love your boss, you love yourself... YOU WILL NEVER FAIL!!!!

Seek first the kingdom of God and all these things will be added unto you!!! Even if your technical business "fails" or goes under, if you conducted it with love, it is everlasting in the Kingdom that counts!
Now that gets me excited about business!!!!! So let's love! Let us love!

Check it out AJoy's Enterprise, LLC or you can read my business blog.

Thursday, October 7, 2010

Working on AJoy's Enterprise, LLC

Alright! So, I have an official, Secretary of State recognized business! No seriously, it hasn't necessarily been a dream of mine to have a business, but I'm on a journey of learning. There are lots more forms and complicated things than I ever knew about.
On top of which I am attempting to learn drupal! (A content management system - basically a website template)
My website is far from done but if you want to check it out it is Ajoy's Enterprise, LLC .

Oh yea... so what is my business you ask?
Essentially classes, connecting, and creations(products). So I will be selling things I make, my Mom makes and my friend Monica makes on the site... I have a few products up without pictures yet... That is a process in itself!
It all started at the Atlanta House of Prayer after putting out MANY MANY applications without "success". I said, "Lord, I think I'm missing something here, what do You want me to be working on?" I then saw in my minds eye creative things, sewing projects and such. I was like huh, I typed that out. A month later I had forgotten all about it (strange isn't it how that works) and I was still searching for a job. And I went back over the things I received from AHOP... I was like, oh, well I better get on that. So I have currently in process my Retail Sales License ($50), and my Withholding License for employees (for myself really-FREE - hurray!). Once those go through every month I haves to submit a Tax Form for sales and quarterly a Form (and money) for the employee withholding!
I'm still trying to figure out Form 2553? To file an LLC as an S corp... Oh the Greek!
Now I have put one Item on, but there rules state that I can't lead people to another site where it is sold the same thing. So I will have items that aren't available on my site on my AJoysEnterprise on Etsy  to keep in compliance with their rules.=)

So my journey currently is creating beautiful things with Jesus and selling them. And networking people that have a similar vision. If go to the site and like it talk to me about getting a page link... I am starting the "Connecting/Networking" for Fort Mill/Charlotte/Rock Hill areas.

Again, note that this is a process I am on and I am by far finished. I wonder what God has in store for Bren and I considering he had a business and now I am learning about this whole thing???
I have also made a business blog.