Can I include raw material shipping costs and taxes in product pricing?
Small business owners often struggle to figure out how to properly factor shipping costs and taxes paid on raw materials into their final retail pricing. This confusion leaves them unsure how to plan and organize expenses, creating a fear of spending money on supplies only to end up with no profit.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
- 1Searching on Google for accounting and pricing rules
- 2Asking questions on online communities
- 3Making a list of everything needed to buy and what each item costs, adding it up, and pricing items high enough to cover those costs and leave a profit.
In their words
Unedited, most upvoted first, each linked to the thread it came from.
“Hypothetically, if I were to purchase raw materials online to be shipped to my house to handcraft and sell, is it illegal to include the shipping cost/taxes I spent purchasing the raw materials, with the cost of products?”source ↗
“Every time I google this question I feel like I’m asking it the wrong question and I genuinely have no idea how else to put it into words??”source ↗
Where this came up
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