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Old 05-29-04, 02:34 AM   #28 (permalink)
latazyo's Avatar
Join Date: Dec-2003
Posts: 832
in business terms that's called overhead

your overhead will be the same, regardless of sales
you can evenly distribute the overhead costs to all of your products and estimate $12 overhead/shipment

if your overhead costs are hurting your profits a considerable amount, you may need to consider only having one shipping date per period to be determined by you in order to reduce your overhead costs per unit

otherwise, like most companies your overhead will be just that...a part of your cost of goods sold and how you account for it is up to you

when you order products from a dealer online you are not expecting to pay extra for the cardboard box they ship it in...they have already included that overhead cost into the price of their product

I would say that when you set the prices of your animals, you need to consider the overhead costs I've discussed and adjust your prices accordingly

does one snake actually cost 500 dollars to produce....probably not in most cases, so I would think that you could ask 500 and theoretically get 488

in the case of the $500 snake, unless the costs of the animal + labor + food + electricity + etc is equal to $488 or higher, then I'd say you've already accounted for your $12 overhead and that like any other company you have to accept fewer profits
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