How do you figure correct selling price?

Discussion in 'Business Operations' started by Mueller Landscape Inc, Dec 8, 2004.

  1. Mueller Landscape Inc

    Mueller Landscape Inc LawnSite Senior Member
    Posts: 489

    Lets say that a job will cost you $1000 dollars and you want to make a profit of 20%. What would your selling price be?
     
  2. wbw

    wbw LawnSite Fanatic
    Posts: 5,516

    divide $1000 by .8
     
  3. Mueller Landscape Inc

    Mueller Landscape Inc LawnSite Senior Member
    Posts: 489

    ahh! you took all the fun out of it. :waving:
     
  4. wbw

    wbw LawnSite Fanatic
    Posts: 5,516

    Oops! Sorry about that.
     
  5. Metro Lawn

    Metro Lawn LawnSite Silver Member
    Posts: 2,112

    I would think if it were costing $1000, then 20% of that would be $200 then you would want to price it at $1200. Unless I am reading the question wrong.
     
  6. wbw

    wbw LawnSite Fanatic
    Posts: 5,516

    Take 20% away from $1200 and tell me if you have $1000 left. I'm willing to bet you don't.
     
  7. muddstopper

    muddstopper LawnSite Silver Member
    Posts: 2,342

    Wrong. :blob3:
     
  8. muddstopper

    muddstopper LawnSite Silver Member
    Posts: 2,342

    Right. :waving:
     
  9. muddstopper

    muddstopper LawnSite Silver Member
    Posts: 2,342

    No you wont have $1000 but it will tell you what 80% of the selling price is.

    Are we looking for % profit based on cost or % profit based on selling price. The formulas are different for each.
     
  10. wbw

    wbw LawnSite Fanatic
    Posts: 5,516

    Muddstopper...I'm not sure there is such a thing as PROFIT based on COST. Only markup on cost.
     

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