Teach Soap

Hi.
I'm getting ready for my first 'official' fair. When I did my kids fair I did not concern myself with taxes only because I was testing the waters and some proceeds were donated. I was happy with the results and decided to sign up for a local July 4th fair in the next city over. I feel I should appropriately cover the tax component of the product sale for this event in light of staying above board (and my own ethics) and frankly with California's crises I think more eyes will be watching in the back office since I have been able to use my resellers license to buy my soap base and colorant tax exempt (because I'm passing it on).

Given where I am at in this process - I will only take cash at the fair. I know, I may loose sales, but I'm just not equiped yet to get the credit side setup and I'm certain people will have a $5 or $10 bill in their wallet for an item that has a palatable price. Thoughts on which route to go with these examples?

Option 1. If a soap is priced at $4.50 - tax will be .44 (using the tax schedule) - total $4.94, my signage would indicate the price + tax - this will require me to carry lots of change and may be awkward to keep pricing simple. This is probably easier for tracking.

Option 2 - Working backwards I could charge $5.00 and the signage would just say tax included. For me it would break down to $4.56 + .44 tax (using the tax schedule it's still the same tax for this price) but the goal is getting the price to be an even dollar amount and that it is easier to digest. This probably will take a bit more effort for tracking at the end but I don't mind if it means keeping it simple for the customer.

My thought is to go with Option 2 just because it's a fair - I could see that on-line and a retail shop - price + tax = total when it is some odd number (and people are using their credit card) is something people get easier.

Thanks for any/all feedback

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http://www.asliceofdelight.etsy.com

Go with option 2. I know for me when I got busy and was just by myself, it would have been next to impossible to always have the correct change to give back.

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Irena
Closed minds are like faulty parachutes; they refuse to open.

Definitely Option 2. Just make sure to have it posted by your prices that the prices include sales tax. That way people won't sit there trying to figure out in their heads if they have enough change to cover tax, etc.
Plus if you do well and there is another soaper not doing well, but don't see you fiddling with change they might think you're not taking tax and try to cause trouble. (I know, not likely, but sadly there are some really petty people in this world)

Just simpler all around. Include the tax in the price, round up to the nearest quarter to make it simple, and make sure it says tax included so people know and there is no guesswork. If it says $5, they give you $5 and you both are happy.

(Oh and make sure to have enough rolls of quarters for change. If you have too many no problem, the bank will take them and change them for you. If you have too few, you waste time and money by closing to go get more.)