Check whether my prices cover costs and profit

Work out the true cost of a product or service, including your time and overhead, and see whether your current price leaves a healthy margin.

The prompt

Help me check the pricing of [PRODUCT OR SERVICE] for my [TYPE OF BUSINESS].

Current price: [PRICE]
Direct costs per unit/job (materials, supplies, payment fees, subcontractors): [LIST]
Labor time per unit/job: [HOURS] at [HOURLY COST, including payroll taxes, or what I want to pay myself]
Monthly overhead (rent, software, insurance, vehicle, etc.): [AMOUNT]
Units/jobs sold per month: [NUMBER]
Target profit margin: [e.g. 20%]

Please:
1. Calculate the fully loaded cost per unit (direct + labor + share of overhead). Show the math.
2. Show my current gross margin and net margin per unit.
3. Give the price needed to hit my target margin, and the break-even number of units per month.
4. Explain the difference between markup and margin using my numbers.
5. Suggest three ways to improve the margin besides raising the price.

Replace every [BRACKETED] part with your own details before sending.

How to use it

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