Jexsy's Balloon Demi Arches
Accurate pricing is essential for maintaining the sustainability and profitability of your business in the long term. Jexsy's Pricing Dashboard not only helps you factor in your costs but also enables you to calculate the profits needed for growth and success
Enter Information:
When using our pricing dashboard, enter information in the cells as indicated below.
Automatic Calculations:
Once the information is entered, the sheet will automatically perform all necessary calculations.
Review Cost and Profit Allocation:
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Check the cost allocation section to see the breakdown of all costs.
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Review the profit allocation section to ensure the desired profit margins are achieved.
Determine Selling Price:
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The dashboard will calculate the recommended selling price based on the entered costs and profit margins.
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Ensure the calculated selling price meets your business objectives.
Take a Look
Important Definitions
Profit Margin
Profit margin is a financial metric used to assess a company's profitability. It is calculated by dividing the company's net income (profit) by its total revenue and is usually expressed as a percentage.
A higher profit margin indicates a more profitable company that has better control over its costs relative to its revenue.
A 60% profit margin includes 35% for overhead costs and 25% for profit. Business owners can adjust these to fit their business goals.
Direct Costs
Direct costs are expenses that can be directly traced to the production of a specific product or service. These costs are variable, meaning they fluctuate with the level of production or service delivery.
Direct costs are essential for calculating the cost of goods sold (COGS) and for determining the gross profit of a company.
Common examples of direct costs include:
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Materials
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Labor
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Supplies
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Utilities
Indirect Costs
Indirect costs, also know as overhead costs, are expenses that are not directly tied to the production of a specific product or service but are necessary for the general operation of a business. These costs are often referred to as overhead expenses and can be fixed or variable.
Indirect costs are essential for the overall functioning of the business but cannot be attributed to a single product or service. They are usually allocated to different departments or products based on a predetermined method, such as a percentage of direct costs or direct labor hours. The percentage used here is 35%.
This allocation helps in accurately calculating the total cost of production and setting appropriate pricing strategies.
Examples of indirect costs include:
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Rent and Utilities
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Administrative Salaries
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Office Supplies
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Depreciation
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Insurance
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Maintenance and Repairs
Profit
Profit is the financial gain a business or individual receives after all expenses have been deducted from total revenue. It is a key indicator of a company's financial health and performance.
The profit percentage used in the dashboard is 25% but can be adjusted.
Profit is crucial for the sustainability and growth of a business, as it can be reinvested into the company, distributed to shareholders as dividends, or used to pay off debts. It also serves as a key metric for evaluating a company's performance and efficiency.