Cost price and selling price: understand the difference

Setting sales prices is a subject that can leave many entrepreneurs with doubts. Many people are not sure what the relationship is between cost and sales price, nor how to calculate the amount that should be charged for products or services offered to customers.

If you have any questions about the subject or want more information, see this guide we have prepared.

Browse the content

How companies priced their products

In the past, it was very common to philippines whatsapp number data the selling priceĀ of goods in direct proportion to the cost of each item. The normal practice was to simply double the amount spent to acquire the product. Thus, if something was purchased for R$15.00, the selling price was R$30.00.

In times of little competition, little information and scarcity of some items even in large centers, this methodology could even work. Today, the story is different.

Cost in relation to the selling price

The first thing that needs to be i can recommend the following literature clear is that the cost is not directly proportional to the selling price, that is, if the value of something you buy increased by R$5.00, you will not necessarily increase the same R$5.00 when it comes time to sell it.

For entrepreneurs who provide services, the reasoning is the same. Their costs should not always on to customers in the same way.

Cost price and selling price: which calculation should I make?

To understand all of this better, let’s examine step by step how the sales price of products and services.

There are several models that can be b2b phone list depending on the type of business, market and level of computerization of your company. However, we have separated a direct and simple way to do the calculations.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top