What price should I charge?
The following is an example of a simple pricing calculator that is based on cost (the price you paid to acquire the product) and the markup (how much increase the cost).
When estimating your markup, you should consider the following: how much do I need to have left over to pay for additional costs of my business? Some of these additional costs are rent or vendor fees, labor cost, marketing, taxes, etc.
When you multiply the cost by the markup, it will produce the price you should charge. It will also produce the gross margin % and gross profit amount. This is how much you will earn after selling the product.
Lastly, you should be aware of competition and how much they are charging for a similar product to make sure you are competitive in your market.
When creating your google sheet or excel calculator use the following formulas:
To calculate Price use =(B2*B3)+B2 where B2=product cost, B3=markup
To calculate Gross Profit Margin use =(B4-B2)/B4 where B4=price, B2=product cost
To calculate Gross Profit use =B4-B2 where B2=product cost, B4=price
