Établir son pourcentage d'escompte par rapport à son pourcentage de profit

Establish your discount percentage compared to your profit percentage

Establish your discount percentage on a product


All entrepreneurs have their recipe and it is clear that it is not the same for everyone. However, I am going to explain to you today how I establish the percentage of discount of a product or a service compared to my percentage of profit on the article.

>> You should know that the selling price of one of your products or services, is established by a given percentage of profit, on a range of prices of a product, compared to its cost price ( the price that your raw materials cost you), multiplied by your established profit percentage, by price range, added to your hourly rate, multiplied by the number of hours it takes you to make the product or provide the service. To all of this, you add your administrative costs to your cost price or to your total, it depends. Fiouf!

THERE, you might think you don't understand a thing. It's normal ! Especially if you are visual like me, here is the calculation " simple " or rather, simplified hihi

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For products:

((Cost price + (hourly rate X # Hours)) + Administrative costs) X% chosen profit percentage = Selling price

Example: < br>
Tableau 1

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For the service:

(((Cost price X% profit percentage) + Administrative costs) + (hourly rate X # Hours))) = Itemized on your invoice by: Materials (including administrative costs) and hours.

Tableau 2
* Detailed in your invoice

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The profit percentage, established in advance, for products costing from $ 25.00 to $ 50.00 is therefore 30%

From this percentage, you can therefore halve your profit by offering a discount half of your profit percentage.


Let's say you sell a part at 50% profit, you can establish that a 25% discount is to be given to your customer for each item. So, if you want to do, for example, an event sale, you can advertise "10% off and more" or "25% off and less" on your Facebook page, to your customers.

Thus, you respect your company and the work you do there while offering a fair, equitable and attractive reduction for your customers.

Do you always wonder how to calculate the price of each of your products or your service? You know me, I am preparing a surprise for you!

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