Calculate the selling price of a product

[seriousdamage]

Hello All,

I am trying to build a template to calculate the selling price of an item given the various costs.

Assuming I buy a product for $10.00,
I expect to make a 10% profit Margin so technically I would need to sell it for $11.00
So far I can handle it, the issue is that the platform where I would sell takes a fixed 15% of the "selling" price, so I need to sell the product for 13.34.
Is there a way to do this in excel?

Many Thanks
Nic

 

[footoo]

Re: How to calculate the selling price of a product

Of Product Cost plus platform fees

This is different from your reply per post # 8

Final sell price if your margin is based on 10% of Product Cost plus Platform Fees :
=ROUND(10*1.1/(0.85-0.85*0.1),2)
(i.e = 14.38)

 

[seriousdamage]

Re: How to calculate the selling price of a product

=round(10/.75,2) (=13.33)

Thanks a lot, it works, but I don't understand it,
I assume that the 10 is the amount of the item in my example, 2 is the amount of digits I want after the comma, but 0.75? I gather is 100 minus the 15% for the platform, but than how does this formula knows that I want 10% margin?

I am sure this is simple finance math but is a little confusing.

Thanks a lot anyway for the solution

 

[footoo]

Re: How to calculate the selling price of a product

Thanks a lot, it works, but I don't understand it,
I assume that the 10 is the amount of the item in my example, 2 is the amount of digits I want after the comma, but 0.75? I gather is 100 minus the 15% for the platform, but than how does this formula knows that I want 10% margin?

I am sure this is simple finance math but is a little confusing.

Thanks a lot anyway for the solution

100 minus 15 minus 10 = 75

(Note : the formula in post # 11 is not correct but I won't bother about adjusting it since it appears that you require a different basis)