Before calculating your retail price, there are other costs that can be attributed either directly or indirectly to each product sold. These additional costs do not form part of the cost price calculation that we went through in the New York cost lesson, as they fall more under the cost category of doing business, rather than the cost category of making a product. Other costs that can be directly attributed to each product sold are very clear. For those selling products online. As each product sold comes with the cost of packaging, and postage to customers. We know how much is needed to package a product with suitable materials that would not damage the product in any way.

And we also know how much it costs to paste each product around the country. Therefore, for online retailers, postage and packaging costs can and must be concealed. Added when calculating overall costs and profitability of each product for those who sell their products from a physical location, such as a brick and mortar store or a market stall. additional costs, like postage and packaging are not directly attributed to each product sold as customers pay for and receive their products immediately and take it away with them in some sort of carrier bag. Also, for products sold from a physical location, things like rent, utilities and wages, if there any staff members are the types of additional costs that would be paid for out of the amount left over after paying for the cost of making your product.