NEW MARGIN CALCULATOR
Free spreadsheet model
Say you are selling products or services at a gross margin of 40%, e.g.:
|Cost of Sales||1200|
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?
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|
|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.
If you would also like a copy just send us an email with "New Margin Calculator" in the message.