“Although you don’t necessarily need accurate allocations for purposes of preparing your company’s financial statements, the odds are that at some point down the road those inaccurate allocations may result in poor pricing decisions, and that’s something you can’t afford to do in an increasingly competitive global market.” this quote is from the fabulous website, Accounting Coach on a page Manufacturing overhead. There you can learn much. For example, “For a product to be profitable, its selling price must be greater than the sum of the product cost (direct material, direct labor, and manufacturing overhead) plus the nonmanufacturing costs and expenses.”
So do the math! And that requires knowing the selling price. Enjoy.
Did you surf the competition? How? You find the store where you “hang” and research everything from price to fiber content to country of origin.
Harrod’s is great for that purpose, depending on your price point. However, do remember that you can always scale anything and everything. If the Harrod’s price, listed in the British pound, for a MOSCHINO CHEAP & CHIC Tuxedo Blouse is £365.00 – you can divide the £365.00 by a ratio or multiply by a percent and determine the price of a blouse that would sell, for example, at half or one-fourth of the price, or 123% of the price of the Moschino.
You determine that ratio or per cent based on your target market. When you have researched your true target pricing, you are in a position to determine your costs and overhead.
So shop a store of your choice today.
- Chanel Takes Over Harrods in London (shoppingblog.com)
- A First Look At Pierre By Balmain, Tom Ford Hits Harrods, Raquel In Brazil, And More… (style.com)
- Designer Spotlight: Erdem (fabsugar.com)
- Become Coco in Wonderland with the Chanel installation at Harrods! (graziadaily.co.uk)