Development of Entrepreneurship

How To Change Your Customers For Your Bakers

  • The people whom we buy from are called suppliers 
  • The people whom we sell to are called customers
  • The price we pay when we buy from suppliers is called the cost price
  • The price we sell our product for, to our customers, is called the selling price

Keep a record of all your expenses and work out what it costs you to make a product. (Remember to include electricity/gas/oil/packing materials).
Customers must pay you cash for your products.
Sell your products at an affordable price.
Round off the price of your product – instead of selling for 97c sell at R1.00.
Don’t overcharge your customers – charge more or less the same as your competition.

Selling price – cost price = PROFIT