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With over 25 years of frontline experience Tom Shay is America's leading small business management expert. He's a "Must Have" for your next event.

This calculator is created to assist you in maximizing your margins. The first step of this calculator is to simply calculate the gross margin of an item. The second step is where you learn how to add gross margin by moving away from absolute margins. As an example, a buyer may calculate a 40% margin with the resulting answer being $13.29. However, research shows that a customer is just as likely to purchase the item if the price is $13.99 as compared to $13.29. The additional 70 cents adds several gross margin points to the price.

Any additional margin you add at this point, falls straight to the bottom line. When you realize that the average business has a single digit net profit, in many cases this exercise can greatly increase the net profit of a business.

Step One: Enter the cost and desired selling price to determine the margin, or enter the cost and desired margin to determine the selling price.
Cost of Item: $
Desired Selling Price: $
Desired Margin: (%) %
Step Two: During the presentation on pricing strategies, Tom demonstrates a technique that will allow a business to make subtle changes in the prices of products to dramatically improve the gross profit and gross margin. To obtain the rounded up price and margin, click on the "final calc" button below. To view the PowerPoint and listen to a recording from the presentation follow this link.
Rounded Up Price: $
Rounded Up Margin: (%) %
Step Three: As you click on the "final calc" button below, the two boxes below will show how much additional gross profit and additional gross margin you will have with each item sold. To further illustrate this enhancement to your price, click on this button to see the price change analysis calculator. You will see that you can sell fewer at the higher price and enjoy the same profit.
Gross Profit Increased by: $
Gross Margin Increased by: (%) %

 

 

 

 

 

Field Seven

APRIL 2024
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Small Business

AdvisorieS

"What's your score"? is the name of the April Small Business Advisory. This provides an introduction to our return on investment calculator. It is a great way to understand how well the investment you have in your small business is working for you.

Small Business

News

Top Story

We believe Thursday, April 25 is an important annual celebration for small businesses. While the name of the celebration has varied over the years, the focus is for us to take kids to work with us.

 

This is important for the kids to see what it is we do. They definitely are not going to learn about it in school. Reading the April Small Business News you will see an example from community pharmacists that emphasizes it is up to us as small business owners to introduce kids to what we do.


Article of the Month

While titled, "If not price", the April Article of the Month is asking the question about the focus of your small business in attracting and keeping customers.

 

If there is not something very special about your business, then the only attraction to your businessis that of a low price.


Book of the Month

"The plan as you go business plan" is the April book of the month. The author is Tim Berry who has also created software on the same topic.

 

I do not agree with the concept of "fill in the blank" or "create the plan as you need it" because my experience has been that you do not have as strong as a connection and understanding to your business plan unless you do it yourself and you dedicate the time to create it.
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BOOK US

With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.

Small Business

Advisories

"What's your score"? is the name of the April Small Business Advisory. This provides an introduction to our return on investment calculator. It is a great way to understand how well the investment you have in your small business is working for you.

Small Business

News

 

Top Story

We believe Thursday, April 25 is an important annual celebration for small businesses. While the name of the celebration has varied over the years, the focus is for us to take kids to work with us.

 

This is important for the kids to see what it is we do. They definitely are not going to learn about it in school. Reading the April Small Business News you will see an example from community pharmacists that emphasizes it is up to us as small business owners to introduce kids to what we do.


Article of the Month

While titled, "If not price", the April Article of the Month is asking the question about the focus of your small business in attracting and keeping customers.

 

If there is not something very special about your business, then the only attraction to your businessis that of a low price.


Book of the Month

"The plan as you go business plan" is the April book of the month. The author is Tim Berry who has also created software on the same topic.

 

I do not agree with the concept of "fill in the blank" or "create the plan as you need it" because my experience has been that you do not have as strong as a connection and understanding to your business plan unless you do it yourself and you dedicate the time to create it.

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Profits Plus Solutions, Inc.
Tom Shay
PO Box 128
Dardanelle, AR 72834
(727)823-7205