Jacqueline Snyder walks through basic pricing for product businesses: if your cost is $10, double it to get a $20 wholesale price, then double that for a $40 retail price. This 2x markup at each stage builds in enough margin to stay profitable.
Let's say you sell a necklace and let's say that necklace costs $10 total to make. That $10 includes your materials, your packaging, and your labor to make one necklace. Now here's the simplest pricing math. Cost of goods times 2 is your wholesale price. So $10 times 2 is $20. So that necklace will be $20 wholesale. And then wholesale times 2 is your retail price. $20 times 2 is $40 retail. That's it. That's the backbone. You start with your necklace. The cost of goods is $10. $10, wholesale is $20, retail is $40. And I wanna reframe this for you. This isn't just about doubling numbers. This is about building enough margin into your products so that your business can actually operate, so it can actually be profitable.
