oh oh, I just found out how my excel calculations are NOT including everything I need to calcualte my selling price.

[mctabish]

I have been using a basic formula of selling price = cost/(1-markup on selling price), but, I have found this is not really what I WANT to do as it does not include the cost of payment processing or the inbound shipping.
I like to have my item below RETAIL value by about 5-10 % and I am looking for a formual that would give me the propervalue, but ensure I am not losing money.


what I had been doing is something similar to max(20 / (1-.20)), (retail * .90, ), and then ensure I have a profit by using another field.

But, now I railize that I have not been including all of my costs in the formula above!
Lets say I have WidgetA and it cost me $20. It weighs 3 lb, and I pay (Paypal 3% or CC 2.7%) And the item resells for $35
so for widgetA it would be
20 for wholesale cost, .60 for Paypal, for rough calc of shipping, I am using 1.35, so my shipping cost is 4.05 totalling 24.65 Then round up to the nearest nickel if need be)
Then based on the retail - 10%, the price would be 31.81 (I would round up to the nearest nickel, so we would call this 31.85If I sum up all my costs, then ad a 20% markup, I can sell it for 30.81



I am trying to figure out a formula that would do what I need t to, but give me the most attractive price for the customer but still have at least a 15% markup. I have curently this al broken down via columns (and manybe that is what I should do...).
But I am trying to figure out a way to ensure I enclude all costs, and have a profit, yet hopefully still be below retail...
Any suggestions would be welcome!

(This is a web site business)


Thanks in advance!

 

[KillerOfGiants]

It is difficult to try to figure out your example, because the numbers don't line up. (I.e.: 10% off retail is 31.50, not sure where 31.81 is coming from).
But looking at your basic formula, have you considered just adding the payment fee and the shipping to the wholesale costs?
Something like this:
=MAX((WHSL+FEE+SHPNG)/(1-MKUP),(RETAIL*.9))