The Education Store - Product Price Calculator

Product Price Calculator

This tool can help you determine the price of your product so that you break even, or even realize some revenue to help cover costs of future product updates. Get started by filling in the boxes below, or by contacting your AgComm Beat Editor to help you determine product pricing.

Item Information

Number of items to print: How many items will you print?

Cost to print: How much did it cost to print this quantity?

Cost per item: This is your cost of printing for each single item.

Estimated percentage of items sold: What percentage of those you print will be sold? We suggest you use 90% for planning purposes, because you may give away some or some may not sell. Be realistic. You can change this number later.

What percentage of those you print will be sold? We suggest you use 90% for planning purposes, because you may give away some or some may not sell. Be realistic. You can change this number later.

Direct cost per item: This is your real cost of each item sold, based upon the information you have provided.

Pricing

The retail price is going to be the major factor when finding the appropriate net revenue. If you're in the negative, then you will either need to increase your retail price, decrease bulk discount, or lower the marketing percentage.

Retail price: Type in the retail price you think you should charge for your publication. You may change this later if you find out you are not recovering costs or if you want to have some money for future projects.

Type in the retail price you think you should charge for your publication. You may change this later if you find out you are not recovering costs or if you want to have some money for future projects.

20% discounted Extension price: Based upon the above retail price, this is the single copy price an Extension Office will pay with their 20% discount.

Based upon the above retail price, this is the single copy price an Extension Office will pay with their 20% discount.

Number of single items in a bulk package: If you want to offer a reduced, bulk price, we need to know how many you will put in a bulk package. We suggest that when you offer this, 10 to 25 items come prepackaged. Remember, if you have a bulk package over $ 50, you pay a lower fulfillment fee (17% versus 27%). Bulk packages must be pre-packed from a vendor at the quantity you specify in pricing.

If you want to offer a reduced, bulk price, we need to know how many you will put in a bulk package. We suggest that when you offer this, 10 to 25 items come prepackaged. Remember, if you have a bulk package over $ 50, you pay a lower fulfillment fee (17% versus 27%). Bulk packages must be pre-packed from a vendor at the quantity you specify in pricing.

Discount for bulk orders (%): Now that you have decided what your bulk packaging will be, what percent discount to you want to offer? Place the percent you will offer. Place the % you will offer in this box.

Now that you have decided what your bulk packaging will be, what percent discount to you want to offer? Place the percent you will offer. Place the % you will offer in this box.

Bulk price: This will be the bulk price for everyone except Extension Offices, based upon information you placed in the above boxes.

Discounted Extension bulk price: This will be the bulk price Extension offices pay.

Marketing

We suggest 5% to 10% of projected gross revenue be reserved for marketing and awareness programs.

What percentage of projected sales will you spend on marketing? Now you need to determine if you need to spend any money on an awareness program to make sure potential customers know about you product. We suggest that you reserve 5% to 10% of projected sales for basic marketing, mailings, etc. Type in the percentage you want to use for marketing. If you do not think you need to spend any money to promote your product enter 0.

Now you need to determine if you need to spend any money on an awareness program to make sure potential customers know about you product. We suggest that you reserve 5% to 10% of projected sales for basic marketing, mailings, etc. Type in the percentage you want to use for marketing. If you do not think you need to spend any money to promote your product enter 0.

Predicted Sales

To determine the projected revenue, we need to determine what percentage of the products will be sold at what price, and to what customer category. Verify that your total equals 100.

Predicted Sales

Your sales predictions in this section will give you a more accurate prediction of net revenue.

Percentage of single items sold: What percentage of your product will be sold as single items at retail price?

Percentage of bulk items sold: What percentage of your product will be sold in bulk at the discounted price you determined above?

Percentage of single items sold to Extension: What percentage of your product will be sold as single items at 20% discounted price for Extension offices?

What percentage of your product will be sold as single items at 20% discounted price for Extension offices?

Percentage of bulk items sold to Extension: What percentage of your product will be sold as bulk items at the bulk discounted price for Extension offices?

What percentage of your product will be sold as bulk items at the bulk discounted price for Extension offices?

Calculations

You won't enter any numbers in this section; however, this section will allow you to make educational guesses for your retail price and discounts based upon the net revenue you will make. Here is The Education Store fee breakdown. There are two parts to the fee.
1. Percentage of sale price:
Orders $50 & under: 27% fee
Orders Above $50: 17% fee
2. Fixed, per-order charge regardless of total cost: $0.75

Total Revenue: Total revenue based on above information.

Total Fees: Total fees based on above information.

Net Revenue: Net renveues based on above information.

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Purdue Extension: The Education Store

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Product Price Calculator

Pricing

Marketing

Predicted Sales

Calculations