This model is for those who buy finished goods to resell. The formula is Cost + Markup = Price.

Instructions:

• Step 1 (True Unit Cost): Do not just enter the price you paid for the item. Calculate the total cost (Purchase Price + Shipping + Clearing + Transport) and divide it by the number of items. This is your True Cost.
• Step 2 (Desired Markup): Enter the percentage of profit you want to make. A healthy retail markup is usually between 30% – 50% to cover your shop rent and utilities.

This model is for consultants, designers, and freelancers. The danger here is undercharging for your time.

Instructions:

• Step 1 (Hourly Rate): If you don’t know your rate, click the Rate Wizard button. It will ask for your “Monthly Revenue Goal” (how much you want to earn total) and “Billable Hours” (hours you actually work for clients). It automatically adds a 30% buffer for taxes and overheads.
• Step 2 (Duration): Estimate the total hours the job will take. Be realistic—include time for research, meetings, and revisions.

This model is for artisans (bakers, tailors, carpenters). You must separate your Labor (wage) from the Business Profit.

Instructions:

• Step 1 (Material Cost): Calculate the total cost of ingredients, fabric, or wood used for this specific item.
• Step 2 (Your Wage): How much would you pay someone else to do this work? Enter that hourly rate here. This pays you.
• Step 3 (Business Profit): Enter a markup percentage (e.g., 50%). This is profit for the company to buy new equipment and grow.