A new venture or product launch to the market is always good news. Especially if it’s the first. However, it can happen that the price we put on himeither an object or a service, be inappropriate.
Of course there are professionals who can perform this job in an exceptional way. But, if it is not within our means, there is nothing wrong with trying to Calculate your own price.
That is why, in this post, you can help yourself simple tools to put a number as appropriate as possible. Especially if you’re just starting out.
What accounts must be taken to obtain the sale price of a product?
It is important that pay attention to the whole production process. As all elements will be useful when calculating the factors of the equation.
Let’s see them:
cost of materials
If what you are trying to sell is a physical item, you must not leave out any of the materials you use. That is, the raw material. Even if it is a minimal element, you have to include it. It doesn’t matter if it’s the tape you use for the packaging or an essential product for manufacturing.
Workforce
Keep in mind the relate them to the number of items produced during your day. In the case that it is a sole proprietorship, you should not exclude yourself from the equation. Since a future addition should not change the price.
Bills
It includes within this factor, all those extra expenses that occur in the process. Transfers, taxes, stationery, taxes, rent, services and even the telephone bill of your company.
If you do the sales through virtual stores and online payments addwhat’s more, The commissions. To perform these calculations it is essential that keep all invoices and receiptsto maintain an orderly and transparent administration.
Margin of gain
It is the percentage you want to earn as a company. You should not include labor here, even if the owner and employee are the same person. This may be the most difficult factor to calculate and will depend on the number you want to get. Such They are usually higher than 30%.
Steps to calculate the sales price of a product or service in Microsoft Excel
We have already shown what are the factors that will define the price of our product. The following will be how to calculate each of them and add them to the final equation. For this, it will be essential to have a tool like MS Excel. Let’s see how to carry out this process in a simple and orderly way.
Have all the receipts handy and follow the steps below:
- Opens MS Excel
- create a new spreadsheet
- In the first row enter the headers “Cost of materials”, “Workforce”, “Bills”, “Total cost”, “Individual cost”, “Margin of gain” Y “Product price”.
- Under each of them you must enter the corresponding number, guided by the image.
To carry out the process in a more orderly manner, we recommend perform individual calculations within the document, but on a particular sheet. bringing the content to cell through special gluing.
For example:
- Click on the sign “+” at the bottom of the document to create a new tab.
- Next, name it the same as the corresponding header. To do this, press the right mouse button and choose “Rename”.
- In this new tab, enter all material costs in one columnwhile, in another, its description.
- You should leave a space to enter the formula (following the example in the image) “=SUM(B:B)” this will sum all the values found in the column B..
- When you have finished placing the values copy the cell that corresponds to the summation. In this case it is the A2.
- go back to the main tab and perform the special glue. To do this, select the corresponding box and press the secondary button about her.
- Then hover over the menu “Special Paste” and press “Special Paste” in the dropdown. This will open a small window.
- In it, click on “Paste Links”. This will cause any changes made in the second tab to be reflected in this value.
- Repeat the operation with all the headers you think necessary.
- The only thing we have to decide is the profit margin we want to get.
- In “Total cost” We will enter the sum of the total expenditure items through the function “=A3+B3+C3”.
- In the cell that corresponds to the “Individual cost” we must divide the total cost over the quantity of articles produced in the segmented time. For example “=D3/500”.
- Since we have defined the arbitrary profit marginyou will not need to perform any calculations in this box.
- Regarding the final price we must carry out the following formula. Individual total cost divided by (1- the profit margin in %). In the example it would be applied in the form “=E3/(1-F3%)”.
This formula can also be important if you already have a defined market price, either based on the competition or other parameters. The same could help you get a target cost or production goal.
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