PRACTICAL GUIDES · WORKED EXAMPLES · TOOLS YOU CAN USE
Business
Starter Guides

KENYA · GUIDE 0927 · EDITION 4.7

Craft supply online store in Kenya: Pricing, Costing and Cash Flow Example

Editorial update: 28 October 2026 · Business planning reference · Review scope

Use one accepted sale unit throughout

Work through a fictional KSh 26,000.00 invoice against KSh 19,200.00 of selected cost lines; distinguish the invoice from collected cash.

This is a planning reference for craft supply online store. The order below is an invented teaching case. It is not a completed customer job, an operating approval or a prediction of demand or earnings.

The example offer and its boundary

Fictional adult craft-store launch: four cord colours, two diameters and five spools per variant, giving eight SKUs and forty sealed spools. Publish the supplier’s actual metre length, fibre and diameter; avoid describing craft cord as climbing or load-bearing rope.

Charging basis to confirm: pack. The rates and quantities below are teaching assumptions. Even a previously recorded listing is not adopted here as a current quotation or an earnings forecast.

Itemised arithmetic

Selected input/activityQuantityAssumed unit rateSelected cost
Labelled cord spools40KSh 350.00KSh 14,000.00
Inventory labels40KSh 5.00KSh 200.00
Mailers40KSh 35.00KSh 1,400.00
Catalogue hours6KSh 400.00KSh 2,400.00
Picking allocation hours4KSh 300.00KSh 1,200.00
CalculationTeaching result
Selected cost totalKSh 19,200.00
Priced/accepted output40 example units
Assumed selling priceKSh 650.00
Assumed invoiceKSh 26,000.00
Difference before excluded costs and taxKSh 6,800.00

Batch cost = KSh 19200; allocated cost per sale unit = KSh 480.00; assumed revenue = 40 × KSh 650 = KSh 26000; pre-tax scenario surplus = KSh 6800. Illustrative per-spool sale; actual prices differ by diameter/length. Delivery is separately quoted and no unverified material-strength claim is included.

Check cash timing and a weaker outcome

TRAINING-0927: a fictional order for the scoped offer in section 01, using 40 priced units at KSh 650.00 each. Buyer group: craft makers. No buyer was contacted and no order was completed.

Teaching invoice = 40 x KSh 650.00 = KSh 26,000.00. The selected input lines in section 06 total KSh 19,200.00; their difference from this assumed invoice is KSh 6,800.00 before excluded costs and tax.

For cash-timing practice only, suppose a buyer pays a 30% advance of KSh 7,800.00. The invoice balance is KSh 18,200.00. If the selected input bill is paid before the balance arrives, additional cash of KSh 11,400.00 is needed after applying the advance. The advance is counted once, not again at final collection.

On full collection, total receipts are KSh 26,000.00. Cash against the selected example bill is KSh 6,800.00 before other payments. If a hypothetical 10% increase in the largest selected line (Labelled cord spools) adds KSh 1,400.00, the unchanged invoice leaves KSh 5,400.00 against that revised bill.

If the customer instead leaves 10% of the invoice unpaid, KSh 2,600.00 is a receivable. Cash collected is KSh 23,400.00 and collected cash less the selected bill is KSh 4,200.00. This differs from invoice margin; do not spend the unpaid amount as though it is already cash.

The scenario is complete only as a teaching record of the stated lines. Add actual excluded startup and operating costs using file 12, and replace every assumed rate before relying on a quote. Use measured accepted output for the actual invoice; unaccepted output is not automatically chargeable.

For an actual quote, add all relevant excluded costs, use measured accepted output, and compare amounts from the same period. An unpaid invoice balance is not available cash. A deposit held for an uncompleted obligation is not automatically earned income.

References and their limits

Bobbiny: Frequently Asked Questions
Cord construction and craft uses; yarn yield depends on the actual gauge and project. Reference check recorded 2026-10-26.

Shopify: Variants
Variant-specific stock reference; no recommendation of a paid plan or current platform-price claim. Reference check recorded 2026-10-26.

Recorded references support only the scope stated beside them. They do not prove current supplier stock, a local quotation, actual buyer demand, operator competence or the feasibility of this particular business. Later editorial changes do not refresh earlier source-check dates.

Prepared by Business Starter Guides using AI-assisted drafting and desk editorial checks. Independent operator trials and specialist certification are not claimed. See the editorial method for the review scope.

Editorial method and evidence limits

Explore this guide by chapter