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Lesson 1 of 7 · 5 min

Know your real cost per item

Many sellers think their cost is what they paid the supplier. Your real cost also includes transport, packing, payment fees and the delivery you don’t charge for. Miss these and your profit disappears.

In this lesson you’ll learn
  • The costs most sellers forget
  • How to share one cost across many items
  • Fixed costs vs costs per item
  • Why your cost changes over time

Do it in 4 steps

  1. 1
    Start with the buying priceWhat you paid per piece.
  2. 2
    Add the trip and transportYour market trip or waybill, shared across the pieces you bought.
  3. 3
    Add packing and feesNylon, box, label, and the payment fee on each sale.
  4. 4
    Add any delivery you coverIf you give free delivery, it is your cost.
Your task
Pick your best seller and work out its real cost per item, with every cost in this lesson.
Before you finish, tick theseTap to tick
Quick check

You bought 20 bags for ₦100,000 and paid ₦10,000 for transport. What does each bag cost you before packing?