Start-up Costing for [Business name] - PRODUCT

[Year] COSTING
Cost EQUIPMENT/C Cost
START-UP COSTS
(P) APITAL COSTS (P)
Business
Registrations
purchase price
Business name Franchise fees
Licences Start-up capital
Plant &
Permits
equipment
Domain names Vehicles
Computer
Trade marks/designs/patents
equipment
Computer
Vehicle registration
software
Membership fees Phones
Accountant fees Fax machine
Solicitor fees Security system
Rental lease cost (Rent Office
advance/deposit) equipment
Utility connections & bonds
Furniture
(Electricity, gas, water)
Phone connection Shop fitout
Internet connection
Computer software
Training
Wages
Stock/raw materials
Insurance
Building & contents
Vehicle
Public liability
Professional indemnity
Product liability
Workers compensation
Business assets
Business revenue
Printing
Stationery & office supplies
Marketing & advertising
Total TOTAL COST /PER
Total start-up costs equipment/capi UNIT & TOTAL COST
tal costs PER VOLUME
MARKED UP PRICE: (30%-50%)
SELLING PRICE

The selling price formula is:

Selling Price = Cost Price +

Profit Margin

Cost price is the price a

retailer paid for the product.
And the profit margin is a
percentage of the cost price.

Selling Price = Cost Price +

Profit Margin

Let's define the key elements

in the formula.

Cost Price: The price a retailer

paid for the product

Profit Margin: A percentage of

the cost price.

How to Calculate Selling

Price Per Unit

Determine the total cost of all

units purchased.
 Divide the total cost by the
number of units purchased to
get the cost price.

Use the selling price formula to

calculate the final price: Selling
Price = Cost Price + Profit
Margin

For example, Hot Pie's Bakery

Supply needs to calculate the
selling price for its product line
of bread machines. The
business purchased 20 bread
machines for $3,000.

Total cost of units purchased:

$3,000

Number of units purchased: 20

Cost price: $150 ($3,000/20)

Now it's time to plug the

numbers into the selling price
formula. The cost price for
each bread machine is $150,
and the business hopes to
earn a 40% profit margin.
Here's what the formula would
look like in action:

Selling Price = $150 + (40% x

$150)
 Selling Price = $150 + (0.4 x
$150)

Selling Price = $150 + $60

Selling Price = $210

Now, Hot Pie's Bakery Supply

has a selling price -- each
bread machine will be sold to
buyers for $210.

With the correct selling price,

your business can earn a
profit

How to determine profit margin:

3 steps
1. Determine your
business's net income
(Revenue – Expenses)
2. Divide your net income by
your revenue (also called
net sales)
3. Multiply your total by 100
to get your profit
margin percentage.
RAW MATERIALS COST /UNIT COST /VOLUME or WHOLESALE