This is a basic worksheet to help you calculate a cost-plus price. You can adapt it for your business.
Business Name: _________________________
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Direct Costs (Cost of Goods Sold – COGS) per unit:
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- Raw Materials: _________ ETB
- Components: _________ ETB
- Direct Labor (if applicable, time to make one unit * hourly rate): _________ ETB
- Packaging: _________ ETB
- Other Direct Costs: _________ ETB
Total Direct Costs (A): _________ ETB
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Indirect Costs (Overhead Allocation) per unit:
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- Monthly Rent (share for this product): _________ ETB
- Monthly Utilities (share for this product): _________ ETB
- Monthly Marketing (share for this product): _________ ETB
- Monthly Transportation (share for this product): _________ ETB
- Other Monthly Overheads (share for this product): _________ ETB
Total Monthly Overheads: _________ ETB
Expected Monthly Sales Volume (units): _________ units
Indirect Cost per unit (B) (Total Monthly Overheads / Expected Monthly Sales Volume): _________ ETB
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Total Cost per Unit:
Total Cost (A + B): _________ ETB
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Markup:
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- Desired Profit Margin (percentage, e.g., 20% = 0.20): _________ %
- Markup Amount (Total Cost * Desired Profit Margin): _________ ETB
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Selling Price (Cost-Plus):
Selling Price (Total Cost + Markup Amount): _________ ETB
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Competitor Check & Value Proposition:
* What are competitors charging for similar items? _________________________
* What is the unique value your product offers? _________________________
* Based on this, does your calculated Selling Price seem reasonable? Adjust if necessary.