#Product pricing calculator plus#
high-volume bargain) and how much your competitors are charging for comparable products.īefore setting a Recommended Retail Price based on your cost price plus profit margin, evaluate your competitors online and take a look at professional networks within your industry on forums or LinkedIn to gauge what’s appropriate for your products and business. Your profit margin will depend on a number of factors, such as your type of business (niche and low-volume vs. The next step is to calculate how much profit you need and want to make on each product sold. The more product variability you have, the more complex this process will be, which is why it’s usually smarter to use tools like our free wholesale price calculator to do the hard work for you.
In this case, the cost price per unit would be: The business also spends $6,000 per year on marketing, $10,000 per year on rent and storage, and $2,000 on other business costs. The materials that make up the product cost $4.50, and the machine used to make the products needs servicing once per year at a cost of $1,000. Once you’ve calculated all your costs, it’s time to work out how much it costs to produce each individual unit or product.įor the sake of simplicity, let’s say a business produces 1000 units of one product over a year. For example, you might also want to consider the cost of inventory shrinkage due to theft or damage.
This list is by no means exhaustive, so think about the specific expenses your business incurs.
#Product pricing calculator software#
Equipment and software used to run your business, such as computers and inventory management software.They include fixed or variable expenses, such as: Overhead costs, also called indirect costs, exist regardless of the volume of products sold.
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