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# General Retail Business Issues/how do I determine retail price on a wholesale jewelry piece

G Lang wrote at 2012-11-30 21:39:23
Hopefully this simplifies that last answer...

If you're not too good with math, skip down to the step-by-step for an easier explanation...

The formula is:

Cost ÷ (1-(markup percentage)) = selling price

example: \$5 ÷ (1 - 0.75) = \$20

\$5 ÷ 0.25 = \$20

STEP-BY-STEP

If you want to come up with a price that includes a mark up of 75%, do this:

Step 1:

(Convert percentage to decimal by moving decimal left 2 places/digits)

examples...

25% = 0.25

50% = 0.50

60% = 0.60

75% = 0.75  <===(our example)

(if you want a mark up of 100% or more, you will need a different equation)

Step 2 (using our example of 75%):

(Subtract that number from 1 (the 1 means 100%))

1 - 0.75 = 0.25

Step 3:

Divide your cost (\$5) by that number (0.25)

\$5 ÷ 0.25 = \$20

\$20 is what you need to sell it for to get \$15 profit (which is a 75% mark up)

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