Breakeven - Amazon and VAT

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I have gone a bit number blind and I know for some of you bods this will be a no brainer so ..

If we buy something that is standard rated for p excluding VAT - the VAT rate is v - and the commission Amazon charge is c - then what is the sum for the break even mark up we need to have assuming there were no other costs

What if we wanted to add a fixed cost for storage and handling say f

Maybe I have forgotten to ask something ?

Thanks

[robindunne]

Sales less marginal costs = contribution.

Fixed costs divided by contribution = breakeven point.

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Well that has thrown me even more - lol - need a hols

I was hoping for a formulae if anyone can see what it is

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Is it

Retail for breakeven = price in ex VAT * (1+amazon comission) * (1+VAT rate)

So in the real world

For an item costing a £1 ex VAT

= 1*1.15*1.175 = 1.351 ??

and if I wanted to put in a profit - or storage cost etc either fixed or variable percentage it would become

Retail for breakeven = (price in ex VAT + fixed) * (1+amazon comission) * (1+VAT rate)

Retail for breakeven = (price in ex VAT*% uplift) * (1+amazon comission) * (1+VAT rate)

[robindunne]

Sales less marginal costs = contribution.

Fixed costs divided by contribution = breakeven point.

You need to know how much your overheads are to calculate a break even point.

In simpler terms, work out how much profit you make from each item, then devide the overheads by the profit figure. That will tell you how many items you need to sell to cover your overheads and therefore break even.

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Amazon is only a small part of our business and margins have been okay but are going down (as expected) so I thought it was time to get a more serious about where we are going to draw the line.

So it was not for a bigger sum for the business - just for a single item - if storage and time are free and so no extra overheads

[Cathy Duncan]

If you guys are going down, it is the exact time to test your strategies. It will let you know about the loopholes, due to which, your business is going down. Once you’re done with identifying deficiencies, you can draft a new strategy to counter such issues. Good luck!