Setting the right price for each product of your catalog is one of the most strategic decisions for any e-tailer. Too low, and you sell your stock at a loss. Too high, and your products remain on the shelves.
Between the purchase cost of the merchandise, unit shipping costs, VAT at 20% and the margin you want to make on each sale, the calculation quickly becomes a headache. A simple formula error in an Excel spreadsheet can ruin the profitability of an entire range of products. products.
To solve this problem, I developed the E-commerce Product Price Calculator, a free, instant tool for securing your profitability item by item.
Why use a calculator for your products?
Many entrepreneurs make the mistake of calculating their margin «by the ladle» on their stock, or of forgetting the real impact of VAT on the final price of a product. product.
My tool has been designed to offer you three major advantages:
- Safety : No more manual costing errors.
- Speed : Get the selling price (incl. VAT) of any product in a matter of seconds.
- Clarity : See exactly what's left in your pocket (net profit) after paying the supplier and shipping the goods.
How do you price a product?
The calculator is designed to be simple. It takes into account the 4 fundamental pillars of the pricing of a physical product :
- Purchase price (excl. VAT) : The unit cost of product billed by your supplier.
- Shipping costs : Logistics costs for shipping a single product (packaging + postage).
- Your profit margin : The percentage of profit you want to make on this product specific.
- VAT : Set by default at 20%, it applies to the final price of the product.
By filling in these fields, the tool instantly generates your Suggested retail price for this article and post your NET PROFIT.
View the price composition of your products
To take things a step further, I've integrated a dynamic graph that breaks down the final price of your product. You can thus visually see the breakdown between :
- Cost of goods (Base)
- The product (Port)
- Government share (VAT)
- Your actual share (Margin)
Try the calculator now
The tool is 100% free. Use it now to check the profitability of your products or to pricer your new products.
👉 Access the Free Product Price Calculator
Conclusion
The profitability of your stock should not be left to chance. Whether you sell clothing, electronics or handcrafted creations, knowing the exact margin of each product is the key to your store's longevity.
I hope this tool will help you better manage your catalog!
