????[FREE] Download the Pricing Spreadsheet and ensure the PROFITABILITY of your Ecommerce: https://enp.vc/planilha-financeira-yt-3 In today's video, Diego Ceciliano (@diegoceciliano), partner and COO of EnP, shows you how to calculate the selling price. Diego brought two ways of pricing, one in which you can use profit margins and another in which you can use Markup. And yes, there are different types of profit margins... they are: Gross Profit Margin; Contribution Margin; Operating Margin and Net Margin. Knowing this, let's calculate the selling price. But, before we start, you need to keep these 4 points in mind: 1- Know the purchase value of the product; 2- Identify fixed expenses; 4- Know the variable costs (commissions and deductions). So, let's assume that the value of your product is 50 reais and you're going to sell it for 100 reais... This doesn't mean that you'll make a 100% profit. In fact, 50% is the value of the product and the remaining 50% is the Gross Profit Margin, from which you only deduct the value of the product. But there are still other costs that you need to deduct from this 50%, which are fixed expenses and variable costs. Now, let's assume that the purchase price of the product is 50 reais and you want to make a profit of 40%, what will be the selling price of this same product? If 40% is the profit, 60% is the value of the product. To find out the selling price, you'll have to divide 50 reais by 60%. The result will be 83.33 reais. The calculation is as follows: 50 divided by 60 and multiplied by 100. In fact, 60% is the product value, 25% will be all the variable costs you calculated and the remaining 15% is the Contribution Margin. This Contribution Margin serves to pay your fixed expenses! Let's suppose you have 5 thousand reais in fixed expenses and want to make a profit of 7,500 reais. How much do you need to bill to reach this goal? To find this out, you need to divide the value of the fixed expenses by the percentage of the contribution margin. In other words, 5000 divided by 15%. Revenue result: 33,330 reais. To have a profit of 7500, the calculation is different. You will add the desired profit to the fixed expenses (12,500) and divide it by the contribution margin (15%). Revenue result: 83,330 reais. This way, you find a sustainable price for your business... And where does Markup fit into this story? Markup is an index that you use to set your price so you don't lose the Margin you want to receive from sales. Following the example in the video, the sales price formation index (markup) would be 1.66% to have a 40% gross profit. After so many calculations, we still have a gift to help you even more with product pricing: FREE Smart Pricing Ebook! With this ebook, you will be able to put together a well-structured pricing strategy that guarantees economic security for your business. Click on this link to download: https://enp.vc/precificacao-yt-10 Did you like it? LIKE, COMMENT AND SHARE! #productpricing #priceproducts #pricingfromscratch Ecommerce in Practice Entrepreneurship Ecommerce Product Pricing How to price Products Pricing Pricing from Scratch ----- • HOW TO CALCULATE SALES PRICE [UPDATED... ---- ➜ Read on our blog: https://ecommercenapratica.com/dicas-... ➜ Discover our Courses: https://ecommercenapratica.com/cursos... ➜ Follow Ecommerce na Prática on Facebook: / ecommercenapraticablog ➜ Follow Ecommerce na Prática on Instagram: / ecommercenapratica ➜ Follow Diego Ceciliano on Instagram: / diegoceciliano ➜ Join our Telegram, where we cover advanced content daily: https://t.me/viverdeecommerce