A common question in a business is what price do I need to sell something at in order to make a certain margin or if I can only sell something at a certain price – what does my cost price have to be to make a certain margin. As always if you have specific questions or a scenario that pertains to you, feel free to contact me directly via the Contact page.
So in this tutorial we are going to look at three common scenarios:
Scenario 1 – Got cost, got margin %, what’s my sales price?
So in this scenario, we have got a sales price, we have a margin % and I show you how to use a formula to quickly calculate that. You can also download the file margin_part_01 to work on.
Scenario 2 – Got a sales price, got a VAT (tax) rate, what’s my cost price?
So in this scenario, we’ve got a sales price, we’ve got a tax rate – so now we need to figure out what the actual cost price is. I show you how to do that using a formula. You can download the file margin_part_02 to practise on.
Scenario 3 – Got a sales price, got a margin %, got a VAT (tax) rate – what’s my cost price?
So in this final video we’ve got a sales price, we’ve got a margin % and a VAT (tax ) rate. I’ve given you two ways to do this – one is where we build it up across two columns but I also show you how you can get this answer with one formula. You can download the file margins_part_03 to practise on as well.
Great tips again Anne!