Maximize price of Item
Hey so here is my issue. I need a formula to determine the minimum price of an item with the following variables:
So as an example, my Item costs me $20. It has a rake of 15% and I need to make a minimum margin of 10%. What is the minimum price where 15% of the final price can be removed and the selling price is still 10% greater then my cost?
Not sure how clear that was, but its the best way I can describe it lol.
Any help would be very much appreciated.
You want 85% of the (selling) price to be 110% of your cost. In symbols...
.85P = 1.10C
If you want the selling price in terms of your cost, divide by .85
P = (1.10C)/.85, which is about 1.294C
So multiply your cost by 1.294 (or anything larger) and you'll be good.