Customers ask us all the time how much they should markup our products. Some customers use a standard 50% across the board, some markup more or less. We built the Selling Price Calculator so that you can easily see the margin potentials on your orders with Stouse. You can find the Selling Price Calculator located under the Sales Tools tab on our website.
How it works:
Simply enter the total net price (including optional services and freight) then click calculate. Five margin percentages will populate and calculated totals will appear showing you how much you will profit based on different margins.
The margin you choose will be influenced by many variables. For example, history with the customer, the possibility of reorders, perhaps this is a new opportunity and a lower margin will help you get a foot in the door. Only you can determine what you need to make on a project, but we think our Selling Price Calculator is another great sales tool to help you make the most of each opportunity.
As you use the Selling Price Calculator, you will see that our recommended margin percentages will vary based on dollar amount. For example, going in with a low margin on a high dollar quote could help you win that job.
A mistake we see from time to time is someone confusing margin with markup. Keep in mind that:
Margin = Sales - The cost of goods sold
Markup = The amount by which the cost of a product is increased in order to determine your selling price
Confusing the terms can lead to setting your price too low or too high, which can result in losing sales or profits.
On your next quote with Stouse, be sure to use the Selling Price Calculator. Let’s win that order together.
Be sure to visit www.stouse.com for additional sales tools.