How is the price composed?
We have been on the market for about half a year now and would like to thank you for all the positive feedback and the many customers who believed in us. It is always an inner flower picking for me when people share my views and appreciate good products and ideas.
I can understand that, as a customer, you cannot always fully see how a price is composed. Since I always want to please everyone and I still have to grow a thick coat, it touches me when people on the web draw about me and our product. That's why I feel emotionally compelled to write a few explanatory words for those who think I would fill my pockets here.
Unfortunately, it is not the case that you can go to the next equipment construction business with your idea, then let the part be built, pay a sum of X and the rest goes into your pocket. There are a lot of institutions in a long line, all of whom want to have a piece of the cake.
Just to name the main candidates that you should / should serve:
Legal advice / legal texts
Hosting & internet presence
Chamber of Commerce and Industry (if you make a profit - we are currently spared from this contribution)
Packaging licensing - dual system
Software for video editing, image processing, CAD system
Workshop needs and machines
Yes, you usually pay a salary too (I don't)
These are the guys who make up a large part of the fixed costs without earning a penny.
What is often overlooked is the VAT: Let's calculate 19%, that would be about 50 € per OCIS that hurt you, but which we send 100% to the tax office.
You have to buy the goods you want to sell first. You can do this in China or in the neighborhood (how we handle it).
If there is still something left in the end, the state then takes its part with the income tax. Since we are not a holding company or any other tax construct, which can get around a large part of the taxes, almost half can be gone.
A company MUST make a profit, otherwise the tax office classifies it as a hobby and wants to see money, since they understandably do not finance hobbies. For us it is currently the case that the shop only pays for itself because I do not pay myself a salary. Entrepreneurial nonsense, but would not work otherwise. But since the trend is correct and I assume that there is currently a rethink regarding sustainability and goods from the Far East, we will continue to stay focused and I hope that I will be able to pay a salary at some point.
On the one hand, we have to reduce our purchase price or adjust the price. On the other hand, increasing the sales figures in order to remain economical or to become at all. For this reason, the small OCIS will expire because it consists of more parts and is more expensive to buy than the large one.
And guys- seriously: this is your hobby!
My hobby, for example, is MTB-riding and only my protective equipment costs more than the OCIS incl. Dremel! I'm not rich and neither are my friends, but biking costs us more than an OCIS with Dremel every year.
It cannot be mentioned often enough: You only buy the OCIS once, it is a lifetime investment!