Calculating the MSRP (Manufacturer Suggested Retail Price):

  • We use the term “bake in”, what do you want the customer to cover versus what you are willing to pay that will reduce your net profit.
  • Working Costs: all the costs associated with a product.
    • Total Production Costs
    • Warehouse/Order Costs
      • Packaging (including inserts, etc.)
      • Pick/Pack Fee
      • Shipping Cost
      • Storage Cost

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