[jlott1]

I am selling some of my poetry. When I am pricing it, considering the cost to produce it, how much of the cost should be a profit to me? For instance, if it cost me $1.00 for each poem, designed and printed, what would be a reasonable price to charge after I have first recovered the $1.00? Should the total cost of the poem be $3.00 ($1.00 to make poem plus $2.00 profit)? Is there a certain percentage I should consider for profit to me?

[ArcSine]

There are no set rules or percentages for determining prices. Very generally, the market sets the prices (what folks are willing to pay) and you then decide if this price provides you with a sufficient profit margin to make the activity worth your time and effort.

This principle is stronger when your product is similar to others that are already being sold, and there's a active and robust market for these items. In such case, you'd have a difficult time charging more than your competitors, if potential customers view your product as being one of several similar alternatives. In such case you can look to the established market as a guide to your own pricing.

This 'pre-established price' principle weakens somewhat if your product is unique in the sense of not having many competing substitutes out there. In this case you'll have to do some experimenting to find out where the 'market clearing' price is--that price that customers are willing to pay, in quantities that you are willing to supply.

Bottom line: Do some homework to investigate whether there are already a number of products out there that are similar to yours. If so, you'll probably need keep your poetry pricing somewhere in that established ballpark. But if your poetry doesn't have many close comparables out there--due to some unique angle you have--then you'll need to do some homegrown 'market research' to find out what folks are willing to pay.

Best of luck with your new venture!