How To Change Your Customers For Your Bakers
- The people whom we buy from are called suppliers
- The people whom we sell to are called customers
- The price we pay when we buy from suppliers is called the cost price
- The price we sell our product for, to our customers, is called the selling price
Keep a record of all your expenses and work out what it costs you to make a product. (Remember to include electricity/gas/oil/packing materials).
Customers must pay you cash for your products.
Sell your products at an affordable price.
Round off the price of your product – instead of selling for 97c sell at R1.00.
Don’t overcharge your customers – charge more or less the same as your competition.
Selling price – cost price = PROFIT