How to select markup values according to overhead costs (including income tax, purchases, and expenses) for small one person frame shop/gallery.
Most of the picture frame industry pricing gurus suggest having your Cost of Goods at 30% or less. The lower the better. FrameReady will show you a report for this.
Follow these steps:
- At the end of the day, perform a Find for all the work orders created that one day (or Find just one order).
- Click on the Print Documents side bar button.
- Select the Wholesale Costs button.
The screen displays the number of records for which it will include in the report and, the total number of records in your database.
The report will show you the wholesale costs and the retail price being charged. More important, it will show your percentage. Check the report to see which prices may need to be adjusted to provide you with a better profit margin.
Check this report anytime you notice the Cost of Goods shown on your work order screen* is more than 1/3 of the price in the top right corner.
* Cost of Goods only shows in the bottom left hand corner in grey text in the work order screen when you are logged in at level2 or above.