how to price a product and/or service and get a profit,? Question: what average percentage is normal for profit resting on

Question: what average percentage is normal for profit resting on time, material, and other visible and not so obvious expenses

Well, pricing is all dependent on constraint and costs of producing. But, along side from that, if you create something that is already on the flea market, then you requirement to know the elasticity of its market price. Usually, you charge a sap up. I have worked surrounded by soo many industries. Its perceptible that alot of business always catch at least 25%-30%. But, some can craft as much as 80%. Some make out greatly low. Supermarkets make something similar to 2% or so. But, it all depends on your string of work. Try going to other stores or businesses to see what they charge. If its a special service, just start next to a low price and slowly move up as the awareness goes up and emergency goes up. Professional services are other about drastically very lofty 20's, like $28 an hour to large $40's. I have to charge a marketplace price because my services are not professional. I paint houses, so I charge $35 dollars an hour. Obvious expenses are heat, rent, electricity, keeping, etc etc. Not so obvious expenses are usually liability, customer's inability or unwillingness to recompense, lawyer fees, court fees, loss of business, paying for damages, interest rates on loans, business credit cards, added costs to hire nation such as social security, strength benefits, vacation pays, etc etc.

Answers:
Many business owners approaching to use a pricing system called "cost-plus." You charge your customer exactly what respectively item costs, plus a set percentage markup for covering other costs plus a profit. This is generally best used within the building industry.

Rules of thumb that I've intellectual over the years --> if you manufacture something you stipulation to take the work cost and multiply it by 4 or 5 to make a profit. For a service orient business you'll need to help yourself to your costs and multiply by between 2 and 4.

These are rules of thumb and you'll need to hold on to a close eye on your P&L details to get a full acumen of that.

This depends on how much of the product you are producing, the demand for it, and how tons levels call for to go. If you are the entrepreneur, a general rule I've see used is to just double the objects cost. Add 25% for each stratum of distribution, and 40% for retail stores.

If you are a farmer, use distrustful numbers and keep going until the lottery money runs out. Source(s):
The total best book on this subject (oriented toward patent accepted wisdom, but applies to all marketing of products) is "Will It Sell" by James E. White
www.willitsell.com
Patent It Yourself by David Pressman covers some of this stuff.
Also check near your local SCORE chapter and university for seminars on business startups.