I will be very interested to see what others say. I know that for inventory when I began, I counted my cost to purchase those items wholesale (plus any shipping costs to me).

Now that I am designing some of my own products, I take the cost of materials, cost of shipping materials to the person making my toys, her charge for labor per toy, and then add in cost of header card/product bag, to get my wholesale cost per toy.

I would think the question here is what do you pay yourself per hour? The cost of materials per item you can figure out, but you need to add a labor cost, even if you are providing the labor ;-)

Or so it seems to me.

Pat and Alix P. Curl