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.

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

PROFITS PLUS, FOUNDER OF...

 

©1998-2025 Profits Plus Solutions, Inc.
Tom Shay
PO Box 128
Dardanelle, AR 72834
(727)823-7205

MAY 2025
Have the Small Business Advisories and News sent to your inbox. Subscribe HERE

Small Business

AdvisoriES

Using an experience with baseball's spring training, we are asking the question of being a hero to your customers. Did you know that the post office has a higher rating of customer service?

Small Business

NewS

Top Story

Is it, "lead, follow, or get out of the way"? Perhaps in some cases, it is. Definitely it is, "you either lead by example, or you don't lead at all".

Article of the Month

"Traits of the great" is the title of the May Article of the Month. It was written in two parts (second part comes in June) as answer to a small business owner asking what her fellow small business owners did.


Book of the Month

Business the Bill Gates Way is the title of our May article of the month. We had the opportunity to speak with someone who is a neighbor to one of the original 12 Microsoft employees. We thought that was a good prompt to suggesting this book.
x
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

Using an experience with baseball's spring training, we are asking the question of being a hero to your customers. Did you know that the post office has a higher rating of customer service?

Small Business

News

 

Top Story

Is it, "lead, follow, or get out of the way"? Perhaps in some cases, it is. Definitely it is, "you either lead by example, or you don't lead at all"


Article of the Month

"Traits of the great" is the title of the May Article of the Month. It was written in two parts (second part comes in June) as answer to a small business owner asking what her fellow small business owners did.


Book of the Month

Business the Bill Gates Way is the title of our May article of the month. We had the opportunity to speak with someone who is a neighbor to one of the original 12 Microsoft employees. We thought that was a good prompt to suggesting this book.