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Hello ... I need some support in pricing

When I calculate my pricing, I dd the direct and indirect costs. How can I calculate the indirect cost on each piece I produce?

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Hi Nermin. Thanks for asking this question. Think about your entire business cycle end-to-end. For example, if you are in a product industry, think about how you acquire your raw materials, what they cost you, your cost of production (variable and fixed), and other efforts related to the product. Other efforts can include marketing, sales, etc, that you perform on routine basis for each batch of production. Calculate your overhead costs separately as well, such as lawyer fees, accountant fees, etc. You may not use that information to directly incorporate into your pricing but you may choose that data to influence your decision to price your products accordingly. Remember - this calculation only gives you a baseline on you absolute minimum. Your price should be structured based on what people are willing to pay! It's supply vs demand, uniqueness of a niche product, etc. I hope this helps. Happy to chat more if you'd like.

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