Sales Math for Dummies

I hate math...In spite of being told I'm good at it. It makes me think in a way that hurts my head and I don't like when my head hurts. So I'm putting my handy math tips in a place I can always find them. I hope you'll find them helpful too!

Returning items to a full price after a sale:

100 - % of discount = % of original cost

% of original cost / 1 = y

y x (sales price) =  actual original cost

Example:

Say you've marked every item in your shop down by 20%. You have an item marked at 15.99 but if you add 20% to that (15.99 + 3.20= 19.19), the number you get would not be the original price of the item. Using the formula above we get this:

100 - 20 = 80% - so our sale was 80% of the original cost.

1 / .80 = 1.25

1.25 x  15.99 = 19.99 - the actual original cost.


FEE Bay shipping

You can use the same formula above to recoup the shipping money stolen from you on ebay. The current rate of thievery there is 9% of shipping.

Let's say you are shipping a heavy item that costs you 18.50 to ship and Feebay will steal $1.67 of that. (18.50 x .09) So you need to recoup 20.17 to break even. But if you charge 20.17, you won't recoup 18.50 but 18.35. This may seem like pennies but, you go in the hole a little at a time. The same formula works to calculate the shipping charges:

100 - 9 (ebay's %) = 91%

1 / .91 = 1.0989

1.0989 x 18.50 (actual shipping cost) = 20.32

20.32 * .09 = 1.83
20.32 -1.83= 20.16 (close enough!)

Calcualting for eBay and Paypal

 Same theory but with Paypal charges the fees come up to around 13% so...

100 - 13 = 87

1 / .87 =  1.15

1.15 x 18.50 (actual cost to ship) = $21.28