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Product pricing

Price a service to cover costs, margin and selling fees.

Margin is different from markup

Profit margin means profit as a share of selling price, not cost. Selling fees here are also a share of price. Include packaging, shipping you absorb, and allocated overhead in full unit cost.

Example and limitations

With cost 60, margin 30% and fees 5%, calculated price is about 92.3077. After fees and cost, profit is 30% of price. If you round the price, recheck the resulting margin.

Does it add VAT?

No. Decide whether inputs include tax and use the VAT calculator separately when needed.

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