Nela Kahle Art and Crafts

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You bought 4 pkts of 8/0 seed beads, at R183 each pkt, rack pkt is 2gm and made a small flower worth R25 cost price, now how to determine the amount of flowers you can make out of the entire materials . How much must I sell my flowers to generate a 120% profit and what is my wholesale price

Nela Kahle Art and crafts 0

Let’s break this down step by step:

1. Cost of Materials Purchased

  • 4 packets of beads @ R183 each = R183 × 4 = R732
  • Each packet = 2 grams, so total beads = 2g × 4 = 8 grams

2. Cost per gram of beads

  • R732 / 8g = R91.50 per gram

3. Cost of one flower = R25

You mentioned the R25 is the cost price, so:

  • Grams per flower = R25 ÷ R91.50 ≈ 0.273 g per flower

4. Total number of flowers possible

  • 8g total ÷ 0.273g per flower ≈ 29.3 flowers
  • So you can make about 29 flowers from the 4 packets.

5. Selling Price for 120% Profit

  • Cost per flower = R25
  • Desired profit = 120%
  • Selling price = R25 + (120% of R25) = R25 + (1.2 × R25) = R55

6. Wholesale Price (Typically 40–50% off retail)

Assuming 50% off retail for wholesale:

  • Wholesale price = R55 × 50% = R27.50

Summary:

  • Flowers you can make: 29
  • Retail price (120% profit): R55
  • Wholesale price: R27.50

problem: Wholesale price isn’t enough to give me profit, I need to rework pricing

Here’s a revised breakdown:

1. Cost per flower:

R25 (your stated cost)

2. Profit goal:

You want 120% profit on retail, which is R55 per flower.
That’s R30 profit above your cost (R55 – R25).

3. Reasonable Wholesale Pricing Strategy:

Wholesale should still include at least 30–50% profit, even if the discount is lower.

  • Minimum wholesale profit (e.g., 40% of R25): R10
  • Cost (R25) + R10 = R35 wholesale price

Recommended Prices:

  • Retail Price (120% profit): R55
  • Wholesale Price (40% profit): R35

This way, you’re protected from selling at a loss and still offer retailers a margin to resell.

I have incurred costs of R375 in delivering this order and packaging, what should be my profit margin that will be able to sustain my business

To sustain your business and cover both direct (materials, packaging, delivery) and indirect (time, equipment, marketing) costs, your profit margin must do more than just cover product expenses—it needs to support business growth.

Here’s how to approach it:

—

1. Full Cost Breakdown (Per Order) Materials (beads):

R732 Packaging + Delivery: R375 Total cost: R732 + R375 = R1,107

You can make 29 flowers, so: True cost per flower:

R1,107 ÷ 29 ≈ R38.17

—

2. Minimum Retail Price for 120% ProfitTo maintain your target 120% profit: R38.17 × 2.2 = R84 per flower

—

3. Suggested Profit Margin Strategy To cover costs and make the business sustainable, aim for:

Retail profit margin: 100–150% Wholesale profit margin: 40–60% This ensures you: Cover all fixed and variable costs

Have extra for business reinvestment Can handle occasional unexpected expenses

—

Final Recommendation Retail Price per flower: R85

Wholesale Price (at 50% profit): R57

Nela Kahle Art and crafts

Website: https://nelakahle.co.za/blog

Nela Kahle Art and Crafts is a business based in Durban, South Africa, focused on community empowerment through art and crafts skills development. They operate as a registered training provider. Here's a breakdown of what they do: * Skills Development: They offer training in various art and craft techniques, with a significant focus on beadwork, as seen in their social media content and YouTube channel. They also provide training in wire weaving and coiling. * Community Empowerment: A core mission is to empower rural communities by providing skills that can lead to economic opportunities. * Product Development: They are involved in creating and potentially distributing art and craft products. Examples include telephone wire recycled baskets and placemats. * Support Services: Beyond training, they offer services like capacity building, coaching, mentoring, warehousing, marketing, and distribution to support the artisans they work with. * Online Presence: Nela Kahle Art and Crafts has a presence on various online platforms, including: * TikTok: Where they share videos showcasing beadwork and other crafts (@nelakahleartandcrafts). * Pinterest: Where they share images of various crafts, tutorials, and aspects of South African art and culture (NelaKahleartcraft). * YouTube: With a channel dedicated to skill development in arts and crafts (Nela Kahle Art And Crafts skill development). * Peek: An online marketplace where they list some of their products (Nela Kahle Art And Craft - Peek). * They also appear to have a website (nelakahleartandcrafts.co.za), although it is currently temporarily unavailable. They also have a catalog available via WhatsApp (Nela Kahle art and crafts). In summary, Nela Kahle Art and Crafts is an organization in South Africa that not only produces and sells art and craft items but also actively trains and supports individuals within communities to develop their artistic skills for economic empowerment. Their focus appears to be strongly rooted in traditional crafts like beadwork and the innovative use of materials like telephone wire.

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