Mark up percentage

[rama koalan]

Hi,anyone can you tell me about how to calculate selling price
If a product cost £10,vat 20%,we expecting mark up 40% ,then what is the selling price

 

[Newchodge]

Hi,anyone can you tell me about how to calculate selling price
If a product cost £10,vat 20%,we expecting mark up 40% ,then what is the selling price

Are you VAT registered?

 

[David Griffiths]

Are you VAT registered?

Doesn't make any difference.

If VAT registered, cost is £10, mark up 40% to £14. Add VAT = £2.80. Selling price £16.80

If not registered, cost is £12.00. Mark up 40% is £4.80 giving a selling price of £16.80

 

[Newchodge]

Doesn't make any difference.

If VAT registered, cost is £10, mark up 40% to £14. Add VAT = £2.80. Selling price £16.80

If not registered, cost is £12.00. Mark up 40% is £4.80 giving a selling price of £16.80

If VAT registered, markup is £4.00
If not VAT registered markup is £4.80

 

[David Griffiths]

If VAT registered, markup is £4.00
If not VAT registered markup is £4.80

Both being 40% of the original cost, which was the question raised. The selling price is the same

 

[rama koalan]

Are you VAT registered?

Yes

Are you VAT registered?

Yes

 

[rama koalan]

If VAT registered, markup is £4.00
If not VAT registered markup is £4.80

May I know what is formula you are using to calculate selling price

 

[DontAsk]

May I know what is formula you are using to calculate selling price

Do you even know what markup is? Why do you want 40% specifically?

 

[Newchodge]

May I know what is formula you are using to calculate selling price

Cost is £10 (ignore VAT as you reclaim it)
Markup is 40% - on £10 that is £14
Seling price is £14 plus 20% VAT, so selling price is £16.80, but you only keep £14 as you pay the VAT to the government

 

[rama koalan]

Both being 40% of the original cost, which was the question raised. The selling price is the same

May I know what is the formula you are using to calculate selling price

 

[Ozzy]

Multiply by 1.4 for 40% is easiest way. Multiply by 1.6 for 60%

So, £10 x 1.4

 

[WaveJumper]

I would have thought its what ever you can get away with, depending of course on what your competitors are doing

 

[pentel]

If you are struggling to work out a mark up you may need further help with all things business finance, time to talk to an accountant.

 

[FreddyG]

May I know what is the formula you are using to calculate selling price

Everything depends on what you are selling and how you are selling it. You also have to calculate your costs and allocate them to each and every item you are selling. There are books on this subject! Here's a list - best read the Amazon splurges and reviews -

Pricing Strategies for Small Business
Author: Andrew Gregson

How to Price Effectively: A Guide for Managers and Entrepreneurs
Author: Utpal Dholakia

The 1% Windfall: How Successful Companies Use Price to Profit and Grow
Author: Rafi Mohammed

Pricing Strategies
Author: Robert M. Schindler

The Expert Guide to Retail Pricing: An Analytics-Based Approach to Maximise Margins
Author: Kiran Gange

 

[rama koalan]

Hi what do you mean by por

 

[Newchodge]

Hi what do you mean by por

I am afraid this is meaningless. It is easier if you quote the message you are replying to by using the 'reply' button in the bottom right corner of the post you are replying to.

 

[rama koalan]

Hi what do you mean by por

If buy stella artois, in invoice they note that pack 6,size 4×500ml,Qty 10,price 18.49p,value 184.90p,vat 20%,std Rrp 5.79,por 36.1%, how to calculate this selling price??

 

[rama koalan]

I am afraid this is meaningless. It is easier if you quote the message you are replying to by using the 'reply' button in the bottom right corner of the post you are replying to.

Sorry

 

[Newchodge]

Sorry

Not a problem

 

[pentel]

in invoice they note that pack 6,size 4×500ml,Qty 10,price 18.49p,value 184.90p,vat 20%,std Rrp 5.79,por 36.1%

on the invoice there will be a quantity purchased and a total amount for that line, for example:

quantity	item	price each (ex VAT)	total (ex VAT)
XXX	Stella 6 pack 4 x 500ml	£XX.XX	£XXX.XX

If you can fill in the blanks and advise your selling price then I am sure we can sort this for you.

 

[rama koalan]

on the invoice there will be a quantity purchased and a total amount for that line, for example:

quantity Item Price each total
** Stella artois 4x 500ml, pack of 6 £*.** £**.**

If you can fill in the blanks and advise your selling price then I am sure we can sort this for you.

Quantity 6,each price 18.49p, so total price 184.90p

 

[pentel]

Quantity 6,each price 18.49p, so total price 184.90p

6 x 18.49p does not = 184.90, it totals 110.94, if + VAT then 133.13
6 x 4 x 18.49 also does not = 184.90, it totals 443.76, if +VAT then 532.51

 

[rama koalan]

Sorry quantity 10, how to calculate selling price of each pack??

 

[DontAsk]

Sorry quantity 10, how to calculate selling price of each pack??

You sell them for whatever you want, to make a profit.

You really shouldn't be trying to run a business if you are finding this hard.

 

[Paul Kelly ICHYB]

You really shouldn't be trying to run a business if you are finding this hard.

Whilst this may seem a bit harsh, I have to agree.

Working out selling prices is retail 101 - @rama koalan please get help with your business as this does not indicate good things to your trading future.

 

[DontAsk]

Whilst this may seem a bit harsh, I have to agree.

I know. I tried to resist saying anything but the OPs posts beggar belief.

 

[Newchodge]

6 x 18.49p does not = 184.90, it totals 110.94, if + VAT then 133.13
6 x 4 x 18.49 also does not = 184.90, it totals 443.76, if +VAT then 532.51

1 pack is 6 x 4 cans @ 18.49. 10 packs = £184.90.

Sorry quantity 10, how to calculate selling price of each pack??

Do you mean a pack of 4 or a pack of 6 x 4?

 

[WaveJumper]

I am totally confused but research seems to show the 4 x 500ml packs are catering packs best price I've seen so far is £6.49 I will also add I am tea total so what do I know

 

[pentel]

best price I've seen so far is £6.49

less VAT @ 20% means ex VAT sales price for a 4 pack of £5.40

Cost as per OP: £18.49 ex VAT per 6 x 4 packs means cost of £3.08 per 4 pack ex VAT

Mark up amount is £5.40 - £3.08 = £2.32

2.32 / 3.08 = 0.75 multiply by 100 to give percentage = 75%

 

[BusterBloodvessel]

I think the OP is confused about margin vs mark up - I suspect buying from Booker or a.n.other wholesaler. He mentioned POR (profit On Return) above which is what Booker use in store to show gross margin. Dunno why, I've never seen that term used anywhere else but maybe it's more common than I think!

OP, to calculate your margin (POR), find your cash profit figure, divide it by the sales price and x by 100. So if your sales price is £13 and it cost you £10 to buy, your profit is £3. 13/3 is 0.2307. X by 100 gives you POR of 23.07%.

If you have your cost price and want to know what to sell it for to get your targeted margin, then you divide your cost price by the REVERSE of your target %. So say in the example above, you want to get 23% (for round figures). The reverse of 23% is 77%, or 0.77. £10 / 0.77 = £12.99.

 

[rama koalan]

6 x 18.49p does not = 184.90, it totals 110.94, if + VAT then 133.13
6 x 4 x 18.49 also does not = 184.90, it totals 443.76, if +VAT then 532.51

Sorry quantity 10, how to calculate selling price of each pack?

I think the OP is confused about margin vs mark up - I suspect buying from Booker or a.n.other wholesaler. He mentioned POR (profit On Return) above which is what Booker use in store to show gross margin. Dunno why, I've never seen that term used anywhere else but maybe it's more common than I think!

OP, to calculate your margin (POR), find your cash profit figure, divide it by the sales price and x by 100. So if your sales price is £13 and it cost you £10 to buy, your profit is £3. 13/3 is 0.2307. X by 100 gives you POR of 23.07%.

If you have your cost price and want to know what to sell it for to get your targeted margin, then you divide your cost price by the REVERSE of your target %. So say in the example above, you want to get 23% (for round figures). The reverse of 23% is 77%, or 0.77. £10 / 0.77 = £12.99.thq

I think the OP is confused about margin vs mark up - I suspect buying from Booker or a.n.other wholesaler. He mentioned POR (profit On Return) above which is what Booker use in store to show gross margin. Dunno why, I've never seen that term used anywhere else but maybe it's more common than I think!

OP, to calculate your margin (POR), find your cash profit figure, divide it by the sales price and x by 100. So if your sales price is £13 and it cost you £10 to buy, your profit is £3. 13/3 is 0.2307. X by 100 gives you POR of 23.07%.

If you have your cost price and want to know what to sell it for to get your targeted margin, then you divide your cost price by the REVERSE of your target %. So say in the example above, you want to get 23% (for round figures). The reverse of 23% is 77%, or 0.77. £10 / 0.77 = £12.99.

Thank you so much sir

 

[DontAsk]

Sorry quantity 10, how to calculate selling price of each pack?

Why is this so difficult? You can sell it at whatever price you want to. Then you can calculate your profit.

Why are you so set on 40%?

Or is there more to this question than you are telling us.

 

[Porky]

Is someone doing GCSE business studies?- Geeze if you can't work out mark up i worry for you frankly.

 

[Paul Kelly ICHYB]

Rrp 5.79,por 36.1%

 

[Mark T Jones]

Is someone doing GCSE business studies?- Geeze if you can't work out mark up i worry for you frankly.

8/10 for initiative

4/10 for arithmetic

2/10 for compression