Need a small bit of help with what is probably a very simple question!
I purchase products from a manufacturer and sell to the public and also to trade via my website.
It's simple enough to work out the total cost of each product (actual cost, shipping, PayPal transaction fees, packaging etc)
I can then use the sale price of the product to figure out my profit margin on each product.
What I can't figure out is how to factor in the 2 fixed costs I have, i.e. not directly related to a product sale, which are advertising and storage costs.
I know what these costs are but how do I allow for them in the profit margin calculation?
All help appreciated
I purchase products from a manufacturer and sell to the public and also to trade via my website.
It's simple enough to work out the total cost of each product (actual cost, shipping, PayPal transaction fees, packaging etc)
I can then use the sale price of the product to figure out my profit margin on each product.
What I can't figure out is how to factor in the 2 fixed costs I have, i.e. not directly related to a product sale, which are advertising and storage costs.
I know what these costs are but how do I allow for them in the profit margin calculation?
All help appreciated