Making my Earrings:
Cost of paperclips for 100 pack = .48 cents each
Cost of backings for 100 each =.10 cents each
Wages – .5 hour at $9/hour = $4.50
20 percent profit = $5.52
Cost = $8.95
I think this is a pretty fair price for the kind of earrings I would be selling, and that my friends and people I know would buy them not only to support me but also because they are unique and very cute!
Reducing the cost –
Cost of paperclips – 200 pack – .20 cents each
Cost of backings – .10 cents each
Wages – .33 hour at 9/hour = 2.97
production = 3.27
.20 profit = .657
Total cost = 4.00
We reduced the cost in half by making a few small changes to the quantity of goods we were buying and also reducing the hours for the production.