Tax-Free Shopping at My House in August - $25+?

[Chef_2_Four]

I am going to have a tax free show at my house in august. I am going to have the orders be tax free at a certain amount. Should it be tax free after $25 or higher amount?

 

[JAE]

I guess it depends on how much your state sales tax is, and why you are promoting this show. Is it because you want to get the knives, you want a venue to get some bookings, or because you actually want to make money. My state sales tax is 6%, so I would make 14% (or more depending on my sales for the month) on any order minus the tax on shipping which would be 24 cents. If you make the minimum order $20 to receive it tax free, you'd pay $1.44 if sales tax is 6% and be making $4 which gives you a net of $2.56 on a $20 order. On a $25 order, your 20% commission would be $5 minus $1.74 which equals a profit of $3.26. (This is all based on 6% sales tax.) Is your average order normally $25? If it's more then raise the minimum to $30. Hope this makes sense and helps you.

 

[Chef_2_Four]

It does make sense! I am trying to have at least a $300 show so we can get the cookware at 1/2 price. It will be my husbands show. I am also giving away one of the knives kinda like a mystery host show. bring a friend get an extra chance kinda thing. My avg depend on the show. The show before last the avg order was $30 last night the avg order was almost $60. I just don't want to make it to high to scare people off you know.

 

[chefann]

I think $40 is a good amount. Sometimes I have shows where the avg. order is $20, sometimes it's a lot more than that. But $40 isn't a scary high amount - and you'll only need 8 people to get there to reach your $300 show.You can always add free shipping at $100 (on top of the free tax) if you want to really encourage people to place big orders!

 

[JAE]

Yes, I do know. If you really just want the cookware and want the sales high enough, then make the minimun $25. Which cookware are you wanting to get at half price?

 

[Chef_2_Four]

the combo in the back of the catalog. my husband wants to "upgrade" our cookware! our stinks!! I took the saute pan to my show last night, you should have seen him this morning looking for it!! it was a hoot!!