Forum Discussion
Automatic Selling price calculator
Hello,
could someone help me with a formula to calculate the selling price of an item given some specific guidelines?
Basically I sell products on a website which I buy from a supplier,
The website where I sell charges me 1 euro per sale plus 15% of the selling price I choose.
The constant is that I like to have a 6% profit in my pocket for each sale and this value needs to have its own cell so that if I like one day to up the margin I can just change this number.
Ultimatelly I should just input the price I buy the item for and the formula should give me the selling price of the item.
Just as a check, if we have any accountants, is my profit % formula correct?
Many Thanks
Regards
Nic
nic140274 Not sure I follow. If you refer to the 25% in cell K4, that is not a revenue. I just entered the tax% there that you charge to the customer. PErhaps I should have removed your column header. Then I don't have to type "25%" in every formula where it is used. Just a habit.
The tax that you pay on you purchases are not costs and the tax that you charge to your customers is not revenue. I doubt that the 1 euro and the 15% are inclusive of taxes, but if you are certain that this is really the case, enter:
=1/1.21in C4, and
=15%/1.21in D5.
Have attached the schedule with these formulae.
12 Replies
nic140274 Have added the formula you need. You can now change the variables in the shaded cells in rows 4 and 5, and the selling price will be calculated for you.
The formula (in words) is as follows:
((Distributor Price + Fixed Website Fee) X (1+ Desired Margin %) ) / (1 - Website Commission % - (Website Commission % X Desired Margin %)
I suspect that a mathematician can make it nicer and remove some brackets, but that's not me right now.
Hi, looks like it works, I am going to play with it today and do a few more tests, but thank you so much.
When I was trying my way I kept getting some type of loop error.
What is the info I see further down the file?
0.841S = PPx(1+pm) S = ((PP+1)x(1+pm))/0.841 nic140274 Ooops! You may disregard the bits at the bottom. That was me trying to figure out the math needed to write the formula in I4. Forgot to delete it before uploading.
