Work out retail price recommendation instantly with clear inputs, formula shown and shareable results.
Pricing for a target margin means dividing cost by one minus the margin, not adding the margin to cost. Grossing up again for expected discounting sets a list price that still delivers the target after promotions.
Margin pricing
Net price = cost / (1 - target margin); list price = net price / (1 - expected discount)
Figures are estimates based on the inputs given. Marketing performance, platform fees and conversion behaviour vary by audience, channel and season. Use this as a planning guide, not a forecast.
Margin is on selling price, markup on cost. A 45% margin is an 82% markup on cost.
It is a constraint, not an input. If your cost cannot support the market price, the product needs rethinking.