The Kit:
Frst off, actual cost. What I did was get the small starter kit. I think for me it will work perfectly. I don't have a lot of capital but I want to start it of at least a little "right" and put some commitment into it. So considering you get the small kit or buy at least $300 worth of inventory and supplies, your totally cost will be:
- Cost of the kit: $300
- Taxes on $500 worth of product: $35 for my 7% sales tax
- Shipping: $10 flat shipping costs for any purchase under $500 (over is free)
Tangent: A lot of women charge $5.50 an item. That would cover your sales tax and shipping, but remember you'll have to cover the extra sales tax to your state for the extra charge. Say for me, I could charge $5.14 an item to recover shipping and the sales tax would be $0.36 making the total cost with tax $5.50. But now every item I sell I will have to cover the extra $0.14 for sales tax to the state to be in the right. Or, I could charge $5.35 and we scott free, or $5.00 and eat the tax cost. Your choice.
Total so far: $345
Marketing:
You'll also want to market yourself. Where I started was a $10 domain name and built my site through Google Sites, which helps my branding because it hosts my email as well and helps me organize all my documents online in one place for free. Next there are business cards. I went for the free ones from Vista Print which is a little less than $8 shipping. So total it up:
- Domain Name: $10
- Website: Free (try Google.com/a or Weebly.com)
- Business Cards: $8
- Printing: $5
There are a lot of other materials you can purchase on the Paparazzi site too, when you're ready. For now I am waiting on profit to invest any more than that. Assuming you have a printer for printing some other materials you want to use at parties and shows, you should be good for starters. Make sure if you're on the JemPro team (sign under me and you will be) and join their facebook group. There are a ton of free printables there. For all intensive purposes, say you don't have a printer. $5 will go a long way at the local library.
Total is up to: $368
Displays:
Finally, you'll want to make displays to have your initial launch party and parties afterwards. These will get much bigger with events, but for starters, take it easy. I am blessed to randomly have access to a merch display that I plan on attaching my items with either paper clips or some other type of pink pretty clip, so my cost will be about $3. Assuming you aren't as fortunate in this department, here is a link to a peg board display created for under $15, so lets say yours is $20. If you have a handy husband or willing friend you can probably find scrap and materials for a lot cheaper. You can check out my Pinterest board for some different makeshift jewelry displays too. For headbands I plan on using a pretty pail I got at the dollar store for (you guessed it!) $1. And for rings I am filling a tray from my kitchen with black beans (it looks cuter than it sounds) and laying them out, another easy Dollar Store buy for $1 and another $2 for beans. So all in all you're looking at:
- Peg Board: $20
- Headband Pail: $1
- Ring Tray: $2
- Paperclips: $2
You can go much crazier than $25. I eventually will for sure. There are bracelet stands at Walmart for $6 I'll want, a necklace display for showcasing a look, etc. I'm holding off for some profits. You may not want to wait.
Total is now: $393
Launch Party:
So I think anyone will agree, the easiest way to start selling a product directly is to have an open house. I will write about my actual open house when it comes, but for now lets just talk money. First, it's super cheap. I plan on spending lest than $10, so for the purposes of an even total lets say $7. I plan on cutting up fruit ($4), making cookies ($2) and serving coffee ($1). Yours may be more, especially if you're not a baker, but really you don't have to do anything but lemon water and some biscuits. I also plan on borrowing from my grocery budget $30 for change at the party, but that I will pay back after so I wont count it in the total.
So, drum roll please...
Final Total: $400
I plan on selling 35 pieces, making almost $200 back before I order new inventory. I plan to invest all (aside from $10 I will put aside for income tax just incase) of that back into inventory which will get me 50 pieces and 2 kits of starlet shimmer with tax and shipping. After that I will have around 115 pieces. More importantly, after your first order you (of more than 25 pieces) you will be listed on the corporate website the month following, and stay there as long as you purchase 50PV (25 pieces) a month. You just keep recycling that income into your inventory until you feel you are at a comfortable place inventory wise. Then you can recoup your costs and let the money making begin! I can't complain about that!
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