Calculations

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In response to some comments on FourthWall's Discord: 

I'm a numbers geek so couldn't resist trying to put the single sales into calculator-pastable formulas: 

(((27+4.03+2.34)−22.90)−6.37)−1.26 = $2.84 
wow, profit margin was set to just $4.10?? 

(((30+3.68+0.00)−27.88)−3.68)−1.27 = $0.85 
looks like the profit margin was only $2.12!! 

(((41.74+7.09+7.86)−39.24)−14.95)-1.94 = $0.56 
definitely make it more higher than $2.50.. 🤔 

basically, aim for a minimum of $6 to $10 OVER the production costs & you will have more leftover after the trnsx fees.. but also don't forget to account for your coupons too to make sure that AFTER your highest discount AND transaction fees, you'll still get a decent amount for profit.. tricky, but yeah ☆ 

example: 

(((40+5.99+1.99)−27.25)−7.98)-1.69 = $11.06 

so $40 is the selling price, 5.99 is estimated shipping & 1.99 is estimated tax, take out production cost of 27.25, take out the transaction fee of 1.69, we're left with $11.06 profit! 

but if someone uses a 25% coupon on that item? oop.. 

11.06−(40−75%) = $1.06 😳 

^ so that's your profit minus (selling price minus what they pay leaving your part to pay cuz you're the one offering the deal) 

of course 25% of $40 is $10 so that means that your profit should cover that $10 off or you'd have to either block those "negative profit" sales if yours is set too low, or add a card to get automatically charged for the overflow.. 

since mine is now set to cover it just in case, I can offer the 25% as long as I'm ~comfortable with getting just $1 on that, my most expensive item lol: the tie-dye bucket hat, haha 😅 

there's another seller with the exact same item, but they set the selling price to $64.50! 😱

let's do the math: 

(((64.50+5.99+1.99)−27.25)−7.98)-2.40 = $34.85 profit! 

but wait, they're advertising a 50%! off code.. whoa! 

34.85−(64.50−50%) = $2.60 is their after-discount profit if anyone were to buy that hat with that coupon, lol wow.. so I suppose it makes sense they upcharged THAT much, to be sure they can still make smth without going into the negatives.. 

(btw all these figures assume the default of "buyer pays s&h") 

hope that helps at least one or a few ppl! 😁 

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..I forgot to address this question, paraphrased: 

"How can I get a $15 profit on this $39.24 item?" 

yeah, just make the selling price an even $60 (or 59.98, lol to look slightly less intimidating to some that focus on the first number) because you have to add what you want TO the item cost AND transaction fees which are always likely to be a few bucks (that's why the price setter provides a preview thing).. don't make your selling price too close to the item cost ♡ 

sure, that means the buyer pays a higher total PLUS shipping & taxes, & if the taxes are rather high like that example.. 

(41.74+18.84%)+7.09 = $56.69 {sell price + their seeming tax charge + their s&h costs} = what they paid in total 

(59.98+18.84%)+7.09 = $78.37 {sell price + their seeming tax charge + their s&h costs} = what they may pay in total 

but as a seller, if you're seriously trying to make profit, then you need to just focus on ~your margin over all else ♡ 

so in the first one, you saw you got just $0.56 back.. 

((56.69)−97.1%)+0.30 = $1.94 trnsx fee 
(all based on single item sale, of course) 

(41.74-39.24)-1.94 = $0.56 profit, ouch.. 😅 

this second could net you a decent amt after trnsx fees! ☆ 

((78.37)−97.1%)+0.30 = $2.57 trnsx fee 
(all based on single item sale, of course) 

(59.98-39.24)-2.57 = $18.17 profit! wow 🤩 

wanna make it easier on your customers & go a bit lower? 

(49.98+18.84%)+7.09 = $66.48 {sell price + their seeming tax charge + their s&h costs} = what they may pay in total 

((66.48)−97.1%)+0.30 = $2.22 trnsx fee 
(all based on single item sale, of course) 

(49.98-39.24)-2.22 = $8.52 profit! nice ☺ 

note: these examples all used that particular sale ♡ 

^ those last few suggestions were NOT counting any coupons, so remember if you decide to offer discounts, check the math first & if you can handle it.. 

🍀 GOOD LUCK SELLING, EVERYONE!! 🍀

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