When using pricing spreadsheets, some of them don’t include marketing costs in the formula. That means it’s lumped into overhead. This approximates something that can be pretty easily calculated.

In 2009, I worked with a consumer beverage and we established regional marketing budgets at $.25 per case sold.  For jewelry, consider this example:

10 hours spent on marketing activities per month X hourly rate of $100 = $1000

Plus hard marketing costs per month (web hosting, software, memberships, etc.) $40 = $1040

Divide that by how many pieces you produce in a month, let’s say 20

$52 = Marketing line item per piece

While it would be great to tack on $52 per piece to the price, it’s probably more realistic to distribute the $1040 across items based on their value instead of straight line allocation. And even if you don’t add in anything to cover marketing it’s a good way to look at things every once in a while so you know what costs you’re covering in overhead.


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