Navigating the complexities of product pricing in manufacturing can be challenging. Our Cost-Plus Pricing Calculator is designed to streamline this critical process. It takes into account all the elements necessary to determine a product's selling price: the fixed overheads that are part and parcel of running a manufacturing operation, the direct costs of producing your goods, and the profit margin you wish to achieve. This method ensures that each product not only contributes to covering ongoing business costs but also generates the profit needed for business sustainability and growth.
Example of Use
Imagine you are manufacturing a tool. The direct cost of materials and labour per tool (COGS) is $5. Your fixed overheads, which include factory space, utilities, and machinery, amount to $2 per mug when averaged out. You're aiming for a profit of $3 per mug to reinvest in your business and provide returns.
Using our calculator, you input these figures and it instantly computes the necessary selling price: $10 per mug.