NEW MARGIN CALCULATOR
Free spreadsheet model
Say you are selling products or services at a gross margin of 40%, e.g.:
Revenue | 2000 |
Cost of Sales | 1200 |
Gross Profit | 800 |
Margin % | 40% |
To be competitive you need to discount, and are prepared to trade at a 30% margin. What's the maximum percentage discount you can give?
(a) 5.7%
(b) 10%
(c) 14.3%
Well it's not 10%.
It is in fact 14.3% - or more accurately 14.286%
And if the current sales price of an item is £2000.00, you can sell it for £1714.29 :
Current Margin | 40.0 | % | Current price (ex VAT) | 2000.00 | optional | |
Cost | 1200.00 | |||||
Target margin | 30.0 | % | New margin | 514.29 | ||
Discount / Increase | 14.286 | % | New sales price | 1714.29 | 30.0% | target margin |
The original spreadsheet model allows you to put your own figures in the yellow boxes. This covers both discounts and increasing your margin.
"Thanks. A great tool, easy to use."
Vaughan Davies
Omnetica Ltd
Vaughan Davies
Omnetica Ltd
If you would also like a copy just send us an email with "New Margin Calculator" in the message.
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