How to Price Wisconsin Compost
- 1). Add together all the costs for creating, bagging, transporting and marketing the compost. Include the cost of doing business, such as any licenses or regulatory fees Wisconsin requires. Also include any labor costs paid to workers. Don't forget taxes such as the company's portion of the workers' social security tax and the Wisconsin Workers Compensation. This total is the amount the compost must bring in just to remain even, without any profit.
- 2). Add together the hours that you worked. Assign a dollar figure to each hour to determine the amount of money that you want to see as profit. Include all personal taxes that you have to pay.
- 3). Compute the amount of money you need to grow and expand the business. A company that remains static as the economy changes is one that probably will not be around for the long term. Add the amounts in Steps 1 through 3 to provide a total cost for the compost you have to sell.
- 4). Divide the number of bags of compost you have into that amount of money, and that will tell you how much to price each bag. If that amount is higher than gardeners are paying elsewhere for their compost, you have to be able to justify to them why your compost is superior enough for them to pay more. Experienced gardeners are willing to pay a premium if they consider it worthwhile.
- 5). Consider raising the price slightly for each bag and then giving a discount on multiple or bulk purchases. Work with the numbers to ensure that you do not hurt your profit by giving discounts.
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