Selling Price Formula Calculator

Selling Price Formula used for this Calculator

• Production Cost = Direct Cost + Indirect Cost + Other Cost
• Targeted Margin = Margin Percent
• Cost of Damaged Units = (Damaged Percent / 100 * Total Units) * Production Cost / Total Units
• Overall Cost = Production Cost + Cost of Damaged Units + Marketing Cost
• Selling Price = Overall Cost * (Margin Percent / 100) + Overall Cost
• Proposed Selling Price = If derived Selling Price < Competitor Price then the result is “Competitor Price” else derived “Selling Price”

**In case “Proposed Selling Price” is higher than the competition, it is suggested to adjust “Gross Margin” to bring the Proposed Selling Price equal to competition or a little higher/lesser to remain competative.

**When the “Proposed Selling Price” is equal to competition price, that means your Selling Price is calculated lower than competition, you have opportunity to earn extra margin.