How do you guys calculate your selling price?
Hello guys,
I am looking for a way to quickly and easily calculate my selling price so that I know how much profit I make on each sale.
The way I currently do it is that I have my buying cost and postage cost but then the commission taken from marketplaces goes up or down depending on the price sold, and as I sell the same product in different pack sizes it’s quite time-consuming. As I need to put my selling price into my formula to get my profit figure, but I have to constantly adjust the selling price to get the profit I want, to determine my selling price.
Not sure if I am overcomplicating it or if I’m completely wrong in the way i am currently doing it, but any help would be much appreciated.
9 replies
Seller_DTufFoxJuMU0M
Thats how I do it.
I have a spreadsheet that works out the commission charges based on the sale price, I enter in my cost price, packaging costs, postage costs, any other relevant costs and then adjust the sale price until the profit and profit % are a figure I like.
You could probably work it backwards if you want to make a certain amount, or a certain %
Seller_tRuvBEHDedp4q
I do have a spreadsheet to calc exact profit, but as a basis I do the following:
I add up (item cost price + postage + a little bit) for packing then times whole lot by 1.5
This gives me break even price (approx) taking into account fees and VAT
You could also add on profit required to the above before multiplying by 1.5 which would give you a rough selling price guide.
I am assuming fees are 15% and standard VAT
so Item cost £10, postage £3, packing 50p, profit required £4
So original cost is 10 + 3 + 0.5 = 13.5
(10 + 3 + 0.5) * 1.5 = 20.25 (approx break even price)
(10 + 3 + 0.5 + 4) * 1.5 = 26.25 (selling price)
15% fee is 3.94
VAT is 4.38
Profit is 26.25 - 3.94 - 4.38 - 13.5 = 4.43 (so approx what you wanted in profit)
Seller_LKjg1QRrO36Yq
I have a simple table of prices based on Amazon’s 'total you will receive (after Amazon costs) figure minus cost of stock, postage and packing materials. It’s fairly simple but I sell only FBM and basically in two categories (books and media).
Winston_Amazon
This was a lovely thread to read, @KB10101 I hope that the posts here have help you out!
Seller_ICqvJVQurZXgc
Spread sheet
Enter the price ex vat and a postage size (1-7) given a value by formula
run through several columns adds a profit margin postage then adds 20% for amazon and 20% for vat this will give you a figure check what profit your making and adjust to suit your needs
