Using the multiple product pricing spreadsheet, you will be able to dynamically evaluate the prices of up to 300 products, their cost composition and compare prices with your main competitor's product. Determining the price is not simple, as it involves a combination of costing methods with subjective issues of competitor analysis and supply-demand ratio, which is why this tool is ideal for registering and monitoring the prices of your products. Monitor the prices of your products frequently and evaluate the most efficient pricing strategy for your company.
Price multiple products for your company in just 5 steps:
1. Register expense items and fill in the amount: Record your company's average monthly sales revenue. Then, record items related to administrative expenses, financial expenses, and sales expenses. At this stage, you can already view all your expenses, that is, expenses not directly related to your company's production or service.
2. Record the fixed and variable cost elements: Record items related to the Fixed Costs and Variable Costs of your operation, whether it is industrial production or service provision. Fixed costs occur independently of the operation, while variable costs are directly related to your production or service operation.
3. Register and record the percentage values of taxes and fees that are applied to the price of the product: Now, record the items related to the taxes and fees charged on your products, whether it is a physical product or a service. Ask your accountant what taxes are applied to what your company sells. This information will help you form the markup index, which is a percentage value applied to the unit costs of your products or services to determine the sales price.
4. Evaluate the markup and set your price. Take the opportunity to compare it with your main competitor: This is the most anticipated moment. If you have come this far, establish a desired profit percentage on the product or service you offer and evaluate the price initially based on the markup, based purely on costs and the desired profit percentage. Fill in the price value of your main competitor's product to finally determine the price of your product. Note that at this stage it is possible to review the desired profit percentage on your products.
5. Visualize everything graphically in the final report: The graphical report provides a visual summary of the twenty most expensive products, the twenty highest-profit products, and the twenty highest-cost products in your business. In addition, the last six graphs provide a comparison of the price of all your products with the price of your competitor's product.
Note: The above product should be considered only as a complement in the execution of activities. It does not exempt the user from adequate monitoring by a qualified professional in the area, in order to obtain greater reliability in the execution of the task.
Multiple Product Pricing Spreadsheet
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There are only 5 steps:
1. Expense Record;
2. Recording of Fixed and Variable Costs;
3. Tax and fee registration;
4. Pricing;
5. Graphs and report.
Have questions? Watch the video tutorial here.