No doubt your aim is to make profit. Essentially what a profit is is a net result from your revenue when you\u2019ve deducted all expenses incurred during the same period. It\u2019s what you earned at the very bottom; it\u2019s your net profit after all expenses.\u00a0<\/p>\n
Now when we\u2019re talking about the first line, the revenue, where you start to take off your expenses, it\u2019s a result of quantities and their selling prices. Be there one item only that you\u2019re selling or multiple items, services or both, there are still quantities and prices per one item \/ service sold.<\/p>\n
When you\u2019re starting to calculate the selling price of an item, what you need to do, is a table. First off on your list is the purchase price or the expenses you incur to actually make the product. For an example, if I buy the health shake (a green drink or some such) for 40, this would be my purchase price. Now to build the table up, you need start calculating your general expenses per items you plan to sell. For an example, my general expenses (salaries, rent, depreciation and so on) add up to 1,000 for the period and against it I plan to sell 100 of those shakes. Those general expenses would add up to 10 per a shake (selling unit in this case) (1,000 \/ 100 = 10). With the purchase price, the expenses per item would be 50 (40 + 10 = 50).<\/p>\n
The expenses now summed up, you need to think about the profit margin you expect to get at the end of the day. Is it 20% or 30%, it\u2019s up to you. In our example, I would say the expected margin is 10%, so I add a 10% to the selling price making it 55 (50 + 50 x 0.1 = 55).<\/p>\n
And this pretty much sums up how you\u2019d find your selling price. Just never forget all the other expenses you also need to cover to be in the black at the end of the day.<\/p>\n","protected":false},"excerpt":{"rendered":"
No doubt your aim is to make profit. Essentially what a profit is is a net result from your revenue when you\u2019ve deducted all expenses incurred during the same period. It\u2019s what you earned at the very bottom; it\u2019s your net profit after all expenses.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,78],"tags":[],"class_list":["post-4105","post","type-post","status-publish","format-standard","hentry","category-2-processes","category-2-8-revenue-and-receivables"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=4105"}],"version-history":[{"count":2,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4105\/revisions"}],"predecessor-version":[{"id":4109,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4105\/revisions\/4109"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=4105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=4105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=4105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}