The costing tab, available in each of your products, allows you to create and compare different simulations of cost, margin, and selling price for your product.

Create a costing

To create a costing:

1. Open the "Costing" tab of a product.
2. Select the Costing Level based on the level of detail you need:

• Product: if you want an overall costing for your product, regardless of the variations.
• Colorways: if you want to simulate individual costing for each colorway of your product.
• Size: if you want to simulate different pricing for each size of your product.

3. Click on "+ New Costing"

This window, dedicated to creating and configuring your costing, opens.

1. Name your costing. For this example, we'll name it "Quote #1".

2. Choose whether you want a "Detailed Costing" or a "Finished Product" costing:

• Detailed costing: the cost of your product will be divided into 2 parts. The first part will be calculated based on the cost of components you've added in the bill of materials for this product, multiplied by the quantities you've specified for each component. The second part will be a field where you can enter the "Make cost".
• Finished Product: if you don't know the detailed cost of your product's components, I recommend selecting this option. You'll only need to indicate the FOB price of your product.

3. You can then select the relevant "Sales Channels" for your product. The system will automatically suggest recommended selling prices based on your target margin for each Sales Channel.

4. Finally, select:

• The currency in which you want to do your costing
• The colorway concerned by this costing
• The supplier linked to this costing

5. When you're done, click on "+ Add costing" to confirm the creation of your costing.

Calculating My Margins and Sales Prices

In our example, we will be using a "Finished Product" costing type for a product sold both wholesale and directly on the brand's website.

Step by step, we will go through all the stages together until we reach the final sales price.

1. Let's assume the FOB price of this product is $10.
2. Now, let's fill in the freight cost ($1) and the duty cost ($1).
3. This gives us a "Landed Price" of $12.

Now, let's calculate the “Wholesale Price”.

1. You can enter your target wholesale margin, and the system will automatically suggest a wholesale price based on the landed price of your product. In our example, we will set the wholesale margin to 150%, which gives a recommended wholesale price of $30 (Computed Wholesale Price).
2. You can now confirm the wholesale price you want to apply. In our example, we will set it to $29.

Now, let's calculate the recommended retail price for the wholesale sales channel.

1. Enter your target retail margin. In our example, it will be 200%, resulting in a "Computed Retail Price" of $87.
2. We will set the recommended retail price to $89.
3. This gives a margin of $60 per product for the wholesaler.

Now, let's finish by calculating the direct sales price. Let's imagine the brand sells this product directly on its website.

1. First, enter the target "Direct Sale Margin." In our example, we will set it to 400%, giving us a recommended sales price of $60 based on the landed price of $12.
2. We will choose to set the sales price at $89 to align with the price set by wholesalers.
3. This results in a "Direct Sale Gross Profit" of $77.

How to Edit or Delete a Costing

If you want to edit the initial parameters of your costing or even delete it, click on the (1) name of your costing.

The settings window will open.

You can also delete the costing by clicking the “Delete” button at the bottom of the page.

Comparing Multiple Costings

You can create multiple costings for the same product to compare different pricing scenarios. To do this, simply create an additional costing. The costings will be displayed side by side on the same page.

Updated on: 19/02/2025