Pricing & Margin
Set prices from your costs and target margin, and stop confusing markup with margin.
Charge at least
$33.33
Gross margin
40.0%
profit ÷ price
Markup
66.7%
profit ÷ cost
Where each sale goes
Cost $20.00
Profit $13.33
Common mix-up: a 40% markup is not a 40% margin. Marking up a $20.00 cost by 40% gives $28.00, a margin of only 28.6%.
Gross margin covers only direct costs. Your overhead and your own pay still come out of it.
Learn the thinking behind it
Growth & Marketing
Pricing for Profit: What to Charge
Three ways to set prices, how to make sure your own pay is built in, and the markup versus margin mix-up that quietly drains profit.
8 minFoundations Tool
Growth & Marketing
How to Raise Prices Without Losing Customers
See why a small price increase can do more for profit than more sales, and how to raise prices in a way customers accept.
8 minEstablished Tool
Restaurants
Menu Pricing and Seasonal Planning
Cost every plate, price from a target, and plan for the slow months while the busy ones are still paying the bills.
8 minFoundations Tool
Retail
The Real Margins of Selling Online
Add up every fee, label, return, and ad dollar so you know what an online order actually puts in your pocket.
8 minEstablished Tool