Pricing Strategy Calculator
The Pricing Strategy Calculator is designed to help you choose the best pricing approach for your business needs.
Whether you’re exploring an option strategy or testing different approaches, this tool makes it easy to compare options.
With the bucket strategy calculator, you can assess how to group products or services for better pricing structure.
If you’re interested in the wheel strategy calculator, it helps you track and refine your pricing based on market trends and customer response.
Pricing Strategy Calculator
Pricing Strategy Formula
Selling Price = Cost Price × (1 + Desired Profit Margin / 100)
Example: If Cost Price = $50 and Desired Profit Margin = 20%, the Selling Price would be $60.
Benchmark Indicators
Understanding benchmarks for profit margins can help set realistic and competitive prices. Here are some typical benchmarks:
- 0% – 20%: Low margin, needs improvement.
- 20% – 40%: Moderate margin, acceptable range.
- 40% – 60%: High margin, indicates strong performance.
- 60% and above: Excellent margin, very profitable.
Real-Life Example
Let’s say you have a product with a cost price of $50, and you want a profit margin of 20%. To calculate the selling price, use the formula:
Selling Price = $50 × (1 + 20 / 100) = $60
Calculated Selling Price
| Cost Price | $0 |
|---|---|
| Desired Profit Margin | 0% |
| Selling Price | $0 |