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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: (%) %

 

 

 

 

 

Field Seven

PROFITS PLUS, FOUNDER OF...

 

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

FEBRUARY 2025
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Small Business

AdvisorieS

Hopefully there are few small businesses that are operating with handwritten documents. Whether you have a point of sale (POS) system; Curstomer relationship management (CRM) system; or anything digital that helps you better operate your business, there remains a question.

 

Are you using everything that you bought? That is the focus of the February Small Business Advisory.

Small Business

NewS

Top Story

As small business ownerss we are sure to disagree on many aspects of business management and ownership. However there are two items that I will always insist on.

 

The first item for you as manager and owner of a business, you must inderstand financial information. You cannot leave it to an accountant.

 

The second item is you have to invest in educating your staff regarding their responsibilities within your business.

Article of the Month

Most every small business has inventory. It may be inventory used as a part of your services. It may be inventory for items used in your business. The article of the month shares ideas of how you should control the inventory. This is important because you do not want to run out of the necessary inventory, and you do not want too much of your money sitting in more inventory than you need.


Book of the Month

You cannot beat your competition unless you know what they are doing. The February book of the month is, The Everything Store, written by Brad Stone and Jeff Bezos.
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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

Hopefully there are few small businesses that are operating with handwritten documents. Whether you have a point of sale (POS) system; Curstomer relationship management (CRM) system; or anything digital that helps you better operate your business, there remains a question.

 

Are you using everything that you bought? That is the focus of the February Small Business Advisory.

Small Business

News

 

Top Story

As small business ownerss we are sure to disagree on many aspects of business management and ownership. However there are two items that I will always insist on.

 

The first item for you as manager and owner of a business, you must inderstand financial information. You cannot leave it to an accountant. The second item is you have to invest in educating your staff regarding their responsibilities within your business.


Article of the Month

Most every small business has inventory. It may be inventory used as a part of your services. It may be inventory for items used in your business. The article of the month shares ideas of how you should control the inventory. This is important because you do not want to run out of the necessary inventory, and you do not want too much of your money sitting in more inventory than you need.


Book of the Month

You cannot beat your competition unless you know what they are doing. The February book of the month is, The Everything Store, written by Brad Stone and Jeff Bezos.

PROFITS PLUS, FOUNDER OF...

© 1998-2025

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