‘Kingly Pet’ – I am really pleased that 'Hyacinth' did a "Phew - this thread worked out for the best...'
Just some more information for you !
I am really pleased that you know all of your fixed and variable costs intimately – don’t forget one of your most important so-called costs is also your Net Profit.
As I said before – knowing your costs is the only way for you to be able to work out a proper/appropriate selling price – either RRP and/or Wholesale. Also, it is important for you to know these costs in order to have control over your business and be proactive and not reactive in the business world.
A lot of small businesses go bust within 12 months and then a lot more go by the 5 year mark – because of the most common problems - they do not plan at all for the future or know that much about their own business (costs).
You made a comment – ‘Ummm, it just makes it easier to do costing etc‘ – Please do not mix up the terms that you use. Costing is totally to do with your own unique business.
When calculating your COGS – don’t forget to bring in transport, packaging and your own time to get the product into a saleable condition.
Now - Selling price can be looked at what the market will tolerate – with a proviso that you are covering all of your business costs – and that includes your profit margin (Net Profit). Wholesale price must be looked at in the same way.
Next - Break-Even Analysis - is an excellent management tool and should be used by all small businesses. It is really easy to set up on an Excel Spreadsheet. The beauty of this little calculation is – that you can play around with heaps of different figures and clearly see the different results – even if you have more than one product to sell.
Now - the new product –Is this new product in any way a competitor to the product that you are selling presently ? If it is/will be then you need to be really careful/brutal/conservative with your figures that you use for the calculations on the following links.
So some links for you:
Calculating your break-even point | Queensland Government
How to Do Breakeven Analysis
ANZ Small Business - Breakeven Analyser
Sales Mix Break-even Point Calculation | Formulas | Example
Just a ‘Mr Google’ search on the difference between RRP and Wholesale Price:
Good Luck !