|
In creating price files you have a number pricing method options including "cost plus" and "retained margin". We frequently get asked why these pricing methods can’t both be used within a pricing file. The simple answer is that you can achieve exactly the same result using either of the pricing methods by using a different calculation: The Gross Profit P is the difference between the cost of the product C and the selling price or revenue R. P(£) = R(£) - C(£) The Cost Plus percentage M (Mark up) is the profit P divided by the cost C to make the product i.e. the profit as a percentage of the product cost. M(%) = P(£) / C(£) The Retained Margin percentage G (Gross margin) is the profit P divided by the selling price or revenue R i.e. the profit as a percentage of the product sale price. G(%) = P(£) / R(£) Click here for our pop up quick calculator |
 |