Costing & Profitability
“We set our prices by market rates, without a clear view of our own cost.”
What it often means
Some orders may be priced below their full cost once overheads, freight and credit periods are counted.
Where the work starts
The full cost of each product or service, including overheads, freight and credit terms.
What you receive
A minimum acceptable price for each product and the discount limits the business can afford.
Where to go next
Free tool
Price-Setting Calculator
A selling price from your cost using a margin or a markup, with GST and a list price that allows for discounts.
Use the tool →Service
Costing, Cost Audit & Profitability
Cost records, cost audit, product costing, pricing, profitability analysis and cost management.
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Similar situation
“We are busy, but we are not sure which products or customers actually make money.”
Read →Sounds like your business?
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