Formula to determine appropriate sales price to meet specific profit margin
I hope this is the correct forum.
I have a large inventory. Each item has a different amount for my cost. Currently I use complex spreadsheets to determine pricing and profit margin per. I am trying to come up with a formula that can be applied across the board and nix the spreadsheets. Here are the variables.
Each product has a cost: product cost
When I sell the product I have a fee based on the total sales price: seller fee
I want a specific profit margin: Profit margin
The only constant in this equation is the product cost. For this exercise lets put the seller's fee at 15% of total sales price, and the desired profit margin at 20%.
What I would like to do is apply some sort of variable to all products that will determine the appropriate sales price to always return 20% profit margin. The problem is that as the cost of different items gets larger a variable applied doesn't return enough profit. Also, as the sales price rises the fee becomes a larger number. As I said the only constant is the product cost. I am guessing you have to work from that point.
As an example lets use these numbers:
product A: product cost $10
product b: product cost $30
product c: product cost $100
product d: product cost $225
I'm not incredibly smart, but if you can figure it out I think you are.