GROSS MARGIN PERCENTAGE CALCULATOR

 

VANUS Consulting highly recommends in order to meet concessionaire’s needs for Gross Margin Percentage on your brand, to follow simple steps in using the Gross Margin Calculator on the following web site:

http://www.financialwisdom.com/smbusresourcecenter/Sample/Calculators/GrossMargin.shtml

To make sure you meet your margins and are able to pay for your cost of goods, as well as the concessionaire meeting their needed gross margin this web site is helpful for calculating.

• Determine what Gross Margin Percentage the concessionaire needs

• Determine what cost of goods is so you are covered

• Determine the MSRP

After figuring out these factors, insert into the calculator on the web site.  If you need the gross margin percentage to increase to get to the concessionaire’s satisfaction, lower the price of the cost of goods.  If you need the gross margin percentage to decrease to get to where the concessionaire needs to be, increase the price of the cost of goods.

Remember, the gross margin percentage rounds either up, or down, so calculate accordingly so your cost of goods is as high as possible to make the  highest profit, but that your concessionaire is happy.