Costs & selling price

Include concentrate and diluent costs, including waste.
Bottle, pump, cap, label, and box.
Allocate equipment, workspace, and other overhead.
Profit as a percentage of your selling price.

Worked example

If the complete cost per bottle is $12 and the target gross margin is 60%, the indicative price is $30: 12 ÷ (1 − 0.60). A 60% markup would give a different price.

Common questions

What is the difference between margin and markup?

Margin is profit divided by selling price. Markup is profit divided by cost. A $10 cost sold for $20 has a 50% margin and a 100% markup.

Does this include taxes and payment fees?

Only costs you enter are included. Add relevant selling costs to your assumptions and account for taxes separately according to your business circumstances.

Should I include my own time?

Include a realistic labour allowance if you want the estimate to reflect repeatable production costs. Keep research and development costs in mind as an additional business expense.