Service pricing formula

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My No-Fuss Formula for Pricing My Services - Elle & Company Freelance Business, Writing Styles, Business Advice, Blog Ideas, Small Business Ideas, Business Resources, Small Business Tips, Business Finance, Business Tools

Pricing is time and time again one of the most difficult things to nail down as a business owner. You price too low and you aren’t able to make ends meet, but you price too high and you run the risk of scaring potential clients away. You’re faced with other tough questions as well, like will you cha

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Brian Feroldi on Instagram: "Margin vs. Markup Knowing the difference can improve profits!  To calculate margin and markup, you need three numbers:  1: Revenue: Income earned from sales after discounts & rebates 2: Cost of Goods Sold (COGS): The cost to create the product/service 3: Gross Profit: Revenue - COGS  🔹 Margin is based on the selling price.  It shows the percentage of the selling price that becomes gross profit.  Formula: (Gross Profit / Reveue) x 100  🔹 Markup is calculated based on the cost.  It shows how much higher the selling price is than the item cost.  Formula: (Gross Profit / Cost of Goods Sold) x 100  Example!  You own a bike shop. You sell a bike for $200 that costs you $150.   Margin: ($50 / $200) X 100 = 25%  Markup: ($50 / $150) x 100 = 33%   Understanding the di Cost Of Goods Sold, Business Acumen, Financial Analysis, Business Essentials, September 28, Bike Shop, Tips And Tricks, Finance, Canning

Brian Feroldi on Instagram: "Margin vs. Markup Knowing the difference can improve profits! To calculate margin and markup, you need three numbers: 1: Revenue: Income earned from sales after discounts & rebates 2: Cost of Goods Sold (COGS): The cost to create the product/service 3: Gross Profit: Revenue - COGS 🔹 Margin is based on the selling price. It shows the percentage of the selling price that becomes gross profit. Formula: (Gross Profit / Reveue) x 100 🔹 Markup is calculated…

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