To really nail your pricing, you first have to get one thing straight: margin and markup are not the same thing. It's a surprisingly common mistake, but confusing the two can quietly kill your profits. Both metrics deal with profitability, but they look at it from different angles. Margin shows you your profit as a[…]
Tag Archives: pricing strategy
So, what's the secret sauce for figuring out if a product is actually making you money? It all comes down to a simple, yet powerful, calculation: retail margin. The formula is straightforward: (Retail Price – Cost of Goods Sold) / Retail Price. The result, expressed as a percentage, tells you exactly how much of the[…]
To figure out your cost per unit, you need to tally up every single expense that goes into production—both the fixed costs and the variable ones—and then divide that grand total by the number of units you made. It's a simple formula, but the result is powerful. This one number tells you exactly what it[…]