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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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©1998-2026 Profits Plus Solutions, Inc.
Tom Shay
PO Box 128
Dardanelle, AR 72834
(727)823-7205

NOVEMBER 2026
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Small Business

AdvisoriES


Seems like today, everyone is a consultant for something. Most small businesses owners have likely received an email, phone call, or visit from someone wanting to sell the services of a consultant.

 

You might find the right combination of consultants (let's call them advisors) in your own neighborhood. And they would likely trade their advice for some advice from you. This month's Small Business Advisory explains how.


Small Business

NewS

Top Story

November has two special events tailored to small businesses. The first occurs in the third week of the month. It's the Great American Teach In Day. Your help will be needed and appreciated.

 

The second event is Saturday, November 28 - Small Business Saturday. Details of how to participate in each is in this month's newsletter.

Article of the Month

Approaching the end of the year, many small businesses start to consider their pay scale for 2027. With some small businesses, bonuses at the end of the year are a tradition. The article of the month shares ideas of how to approach payroll as the new year approaches.


Book of the Month

You are awesome at what you do. You are a small business owner and that takes a lot of bravery to do what you do.

 

Part of what you requires what Malcolm Gladwell calls, "thin slicing." Others refer to it as "gut feeling." The book of the month talks about the need to stop doubting your greatness.

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

Seems like today, everyone is a consultant for something. Most small businesses owners have likely received an email, phone call, or visit from someone wanting to sell the services of a consultant.

 

You might find the right combination of consultants (let's call them advisors) in your own neighborhood. And they would likely trade their advice for some advice from you. This month's Small Business Advisory explains how.

Small Business

News

 

Top Story

November has two special events tailored to small businesses. The first occurs in the third week of the month. It's the Great American Teach In Day. Your help will be needed and appreciated.

 

The second event is Saturday, November 28 - Small Business Saturday. Details of how to participate in each is in this month's newsletter.


Article of the Month

Approaching the end of the year, many small businesses start to consider their pay scale for 2027. With some small businesses, bonuses at the end of the year are a tradition. The article of the month shares ideas of how to approach payroll as the new year approaches.


Book of the Month

You are awesome at what you do. You are a small business owner and that takes a lot of bravery to do what you do.

 

Part of what you requires what Malcolm Gladwell calls, "thin slicing." Others refer to it as "gut feeling." The book of the month talks about the need to stop doubting your greatness.


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