Set a profitable price
Calculate the minimum price that covers purchase cost, fixed charges and fees proportional to the sale.
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Calculate net profit, margin, markup and break-even price after purchase cost, fixed selling fees and percentage commissions.
A selling price above purchase cost does not guarantee a healthy margin. Add commissions, payments, marketplace, packaging and other fees to see the profit you actually retain.
Calculate the minimum price that covers purchase cost, fixed charges and fees proportional to the sale.
Net profit per sale is calculated after every entered cost, then compared with selling price and total cost.
Test direct sales, marketplaces or distributors by changing fixed charges and percentage commissions.
Useful formulas for avoiding an overstated profit margin.
Margin divides profit by selling price. Markup divides profit by total cost. The two percentages answer different pricing questions.
Include marketplace commission, payment fees, packaging, fulfilment, logistics, expected returns and every expense directly linked to a sale.
The break-even price covers purchase cost and fixed selling fees after the percentage selling fee has been deducted. Below that price, the sale makes a loss.
Prefer amounts excluding VAT when your business recovers VAT. Use the same tax basis for cost and selling price so the comparison remains consistent.
Calculate net profit, margin, markup and break-even price after purchase cost, fixed selling fees and percentage commissions.
Calculate net profit, margin, markup and break-even price after purchase cost, fixed selling fees and percentage commissions.
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