Price mark up?

[jessicaj]

Just wondering if you mark up the price of forms, eyes, supplies and what not or if you charge actual cost for it. I'm hoping to take in some customers here pretty soon, trying to get my permits in order and had some work orders printed up, just curious how to handle the price of supplies and what not. Thanks!

[Nick]

Not quite sure why you need to mark up the price of these items.  I don't sell them to the customer, I sell a finished product and they pay me for my time and talent to produce the finished product.  If you really wanted to tell them the cost of these items you need to take into consideration the cost of shipping with each item.

[Cole]

Most taxidermy businesses charge a flat fee for a mount, including labor, supplies, etc. If your asking should you mark up the prices of supplies when figuring prices for your pricelist then I guess thats up to you. I do not, at least not directly. I add wages AND a shop profit, which would be similar to mark up. However, if a customer wants something out of a catalog, such as a rock base, panel, etc. then absolutely there is a markup. Not sure if I answered your question but hopefully this helps.

[EJ]

I have a flat price every year for my deer mounts. But if you want a panel on back I usually mark up the price $10.

[Jims Wildlife Studio]

Jessica, I don't think you have any idea. like Nick said you are not selling the form's the supplier's are. You have to come up with a price on a shoulder mount. The customer does not need to no what it cost's you to do a deer just your finished price. And if you don't have a taxidermy permit yet, all you can charge is the cost of the supplies that you pay. A mark up on supplies this way may be illeagle in most states. Good Luck, Jim

[J P Baker]

Yes, 100% mark up on supplies + man hours = price to customer

[Becky P]

EJ, $10? Where do you get a panel for $10?

[Cole]

You don't get a "good" panel for $10.00!!!

[Becky P]

EJ, I just saw your other post. I see now, you're ADDING $10 to the price of the panel. Right? I thought you were just adding 10 to the deer price. LOL Makes sense now.

[Old Fart]

A REAL BUSINESS charges a mark up on everything! That's HOW they make a profit! How you determine that profit is strictly up to you. You could total up all the costs involved in putting together the deer head and then add the profit, or you could determine the total cost per hour of running your shop for the year and use that and your total hours in a deer head and use that figure.  In a normal business DOUBLE that to determine your PROFIT.  After you have determined that cost and the profit, THEN add on your wages.

When you determine the hours in your mount don't forget the time that you spend with the customer. The time for shop clean up and maintenance.  The time spent ordering supplies and checking them in when you receive them.  The time spent paying bills and keeping the books.  The time spent doing local errands and picking up the supplies you get locally.  The time spent mowing the grass, shoveling snow and sweeping up outside the shop to keep it presentable for your customers.  The time spent on the phone answering "stupid" questions and quoting prices.  The time spent talking to business or school groups, it is business promotion after all! The time spent at shows, seminars, taking classes in art, photography or even business that would be a benefit to you in your business.  Even the time spent reading Breakthrough.  If you were working for someone else, ALL of this would be time that you would be getting PAID FOR.

[EJ]

Sorry Becky,
                    I just read my other post and I can see why you thought that. I guess I was watching the chicken dance while I was typing  Yeah  Dang bird! I add $10 to the price of the panel.

[jessicaj]

Jim, I'm not sure what your trying to say by you don't think I have a clue but those may well be fightin words. I do know how you should figure your price for your average deer mount, but I have heard some people say that they mark up the price of supplies and I was just curious if that's a common thing to do. If you go to you car mechanic, he has a price that he pays for parts and than there is the price that YOU pay for that part, and it's usually double, that's the main reason I asked. I've been running numbers through my head constantly trying to make sure I get a fair price for my work and was just curious what others do. Old fart, you make a very good point but I'm not sure exactly what this means

 In a normal business DOUBLE that to determine your PROFIT.  After you have determined that cost and the profit, THEN add on your wages.

I have also heard some people say that they double the price of tanning. Just trying to figure out the best way of doing things.

[Warren Stutesman]

 Be careful when marking up prices of supplies. In MI we pay a use tax on supplies bought but if you mark up supplies then you have to charge and pay a sales tax. Yes I know it may be different elsewhere but this is Michigan.

[Greg Waite]

 I run a sign shop for my 40 and we buy at wholesale, same as taxidermists, and we mark our supplies up 30%, then figure hours worked on + overhead + profit. The co I work for already has it's hourly overhead rate, so I figure the hours worked on(labor) + supplies (30%^) + overhead/ hours worked on + profit = final price. So jessica, I mark my supplies up 30%, I wish I could mark things up like I do at the sign shop, maybe I could actually make more money. But if the local economy won't pay it, you just shot yourself in the foot.

[Old Fart]

That's just one way of determining a profit margin. Exclude your wages and double the costs that you have in the materials(tanning included, if you have them commercially tanned) that will give you a profit based on your investment of capital in the mount. As far as paying sales tax on that amount....How is the state going to determin that you have marked it up? My understanding of sales and use taxes is that they are mutually exclusive.  At least in Minnesota. If you pay the use tax on your materials then you don't charge sales tax on it and  if you don't pay use tax on your materials you must charge the customer sales tax.

Remember the profit is also used to pay for the miscellaneous costs(power, heat, insurance, etc.) that you incur in the normal operation of a "business". A 30% mark up will probably not make you much of a profit. As a very general rule of thumb, the more times you turn over your inventory the lower your gross profit margin can be.  It this business our inventory is not turned over a lot, so the gross margin has to be higher. A great example of that would be gasoline, since it's a product that's turned a lot, the gross profit margin is small.

Reread the above posts and you will have a good idea of why most taxidermist are not good business people. It also will not surprise you that the most poorly attended seminars at any taxidermy convention are the business seminars.