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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: (%) %

 

 

 

 

 

 

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Tom Shay
PO Box 128
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(727)823-7205

JUNE 2026
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Small Business

AdvisoriES


Marketing talks about finding your target customer. Unfortunately, those customers are not wearing a shirt with a bullseye on them to help you make that determination. The June Small Business Advisory offers an alternative method for understanding where your customer lives.

Small Business

NewS

Top Story

It is countdown to the start of the 24th Independent Retailer Month beginning July 1. We work to promote the celebration from a different prospective; that of telling the public of the benefits they receive because they shop at a locally owned independent retailer. We also share reseach that shows the many positive feelings that consumers have about locally owned independent retailers and why they prefer to shop with you.

Article of the Month

Remeber Struther Martin in Cool Hand Luke as he said, "What we have here is a failure to communicate"?

 

We are going to apply that expression to the software you use in your business. Are you getting what you need from that software?


Book of the Month

Think of how Harley Davidson, Apple, and Campbell's Soup are perceived. Each have a very devout following. We call that cult branding. This month's book we review is, "The Power of Cult Branding", by B.J. Bueno.

All this plus the Internet Tool for Your Business and a staff incentive idea for your business.
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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

Marketing talks about finding your target customer. Unfortunately, those customers are not wearing a shirt with a bullseye on them to help you make that determination. The June Small Business Advisory offers an alternative method for understanding where your customer lives.

Small Business

News

 

Top Story

It is countdown to the start of the 24th Independent Retailer Month beginning July 1. We work to promote the celebration from a different prospective; that of telling the public of the benefits they receive because they shop at a locally owned independent retailer. We also share reseach that shows the many positive feelings that consumers have about locally owned independent retailers and why they prefer to shop with you.


Article of the Month

Remeber Struther Martin in Cool Hand Luke as he said, "What we have here is a failure to communicate"?

 

We are going to apply that expression to the software you use in your business. Are you getting what you need from that software?


Book of the Month

Think of how Harley Davidson, Apple, and Campbell's Soup are perceived. Each have a very devout following. We call that cult branding. This month's book we review is, "The Power of Cult Branding", by B.J. Bueno.

 

All this plus the Internet Tool for Your Business and a staff incentive idea for your business.