SayPro Pricing Calculation Template

Templates to Use: Pricing Calculation Template: A spreadsheet that calculates the cost of services/products and the proposed price for each quotation, including margin analysis

1. Spreadsheet Structure Overview

The pricing calculation template consists of several key sections, including:

1. Product/Service Details
2. Cost Breakdown
3. Margin and Pricing Calculations
4. Proposed Quotation Price
5. Final Summary and Analysis

Each section is designed to be filled in as data becomes available for each specific product/service and quotation.

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2. Product/Service Details Section

This section includes the essential details about the product or service being quoted. The template should look something like this:

Field	Description
Product/Service Name	[Enter Product/Service Name]
Description	[Enter brief description of the product/service]
SKU/ID Number	[Enter SKU/ID Number]
Unit of Measure	[Enter unit of measure, e.g., each, kg, hour]
Quantity	[Enter Quantity being quoted]

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3. Cost Breakdown Section

In this section, the direct costs associated with the product or service are listed. These costs are essential for calculating margins and the final proposed price.

Cost Element	Unit Cost	Quantity	Total Cost
Direct Material Cost	[Enter Unit Cost]	[Enter Quantity]	[Calculated Total]
Labor Costs	[Enter Labor Rate]	[Enter Quantity or Hours]	[Calculated Total]
Overhead Costs	[Enter Overhead Rate]	[Enter Quantity]	[Calculated Total]
Shipping/Delivery Costs	[Enter Shipping Cost]	[Enter Quantity]	[Calculated Total]
Other Direct Costs	[Enter Other Costs]	[Enter Quantity]	[Calculated Total]

• Direct Material Cost: This includes the cost of raw materials or items required to deliver the product or service.
• Labor Costs: Include wages or fees paid to workers involved in the production or delivery of the service/product.
• Overhead Costs: Indirect costs like utilities, rent, etc., that can be allocated to this particular product/service.
• Shipping/Delivery Costs: Associated shipping costs for transporting the product to the customer.
• Other Direct Costs: Any other direct costs involved in delivering the product/service (e.g., licensing fees, special tooling, etc.).

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4. Margin and Pricing Calculations Section

This section is where margin analysis and pricing calculations are performed. It compares cost with the proposed price and helps determine the profitability of the quotation.

Description	Amount
Total Direct Cost (Sum of all costs)	[Calculated Total Direct Costs]
Desired Profit Margin (%)	[Enter Desired Margin %]
Markup Amount	[Calculated Based on Desired Margin]
Proposed Price (Selling Price)	[Calculated Total Price]

• Total Direct Cost: This is the sum of all the direct costs (from the cost breakdown section).
• Desired Profit Margin: The percentage markup added to the cost to determine the final selling price.
• Markup Amount: This is the extra amount added to the cost based on the desired profit margin.
• Proposed Price (Selling Price): This is the final price proposed to the client. It is calculated as: Proposed Price=Total Direct Cost×(1+Desired Profit Margin100)\text{Proposed Price} = \text{Total Direct Cost} \times \left(1 + \frac{\text{Desired Profit Margin}}{100}\right)Proposed Price=Total Direct Cost×(1+100Desired Profit Margin​)

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5. Final Pricing Summary Section

This section provides an overall view of the pricing calculation, including margins and final price.

Item	Value
Total Direct Cost	[Calculated Total Direct Costs]
Desired Profit Margin (%)	[Enter Desired Margin %]
Markup Amount	[Calculated Value]
Proposed Quotation Price	[Final Proposed Price]
Tax Rate (%)	[Enter Tax Rate]
Taxes (if applicable)	[Calculated Tax Amount]
Total Price After Tax	[Final Price Including Tax]

• Tax Rate (%): If applicable, the tax rate (e.g., VAT or sales tax) is included in the final price.
• Taxes: The tax amount calculated based on the tax rate.
• Total Price After Tax: The final price that includes the taxes. Calculated as: Total Price After Tax=Proposed Price×(1+Tax Rate100)\text{Total Price After Tax} = \text{Proposed Price} \times \left(1 + \frac{\text{Tax Rate}}{100}\right)Total Price After Tax=Proposed Price×(1+100Tax Rate​)

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6. Margin Analysis Section

This section provides insight into the margins for different scenarios. It helps evaluate if the desired profit margin is sufficient to cover the cost and generate the required profit.

Scenario	Cost	Proposed Price	Margin (%)
Standard Pricing	[Total Cost]	[Proposed Price]	[Calculated Margin]
Discounted Pricing (if any)	[Total Cost]	[Discounted Price]	[Calculated Margin]
High Demand Pricing	[Total Cost]	[Higher Price]	[Calculated Margin]

• Standard Pricing: The base pricing with standard margin.
• Discounted Pricing: If a discount is applied, this section will show the impact on the margin.
• High Demand Pricing: If a higher price can be charged during periods of high demand, this scenario will help assess the potential margin.

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Example of a Final Output

Product/Service	Total Cost	Markup (%)	Selling Price	Tax (%)	Tax Amount	Final Price (Including Tax)	Margin (%)
Product A	$100.00	30%	$130.00	10%	$13.00	$143.00	30%
Service B	$200.00	25%	$250.00	10%	$25.00	$275.00	25%

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7. Instructions for Use

• Data Input: Enter the values for each section in the corresponding cells.
• Formulas: Use formulas to automatically calculate total costs, markup amounts, and final prices based on input data.
• Margin Analysis: Regularly review margin percentages to ensure that prices are set at profitable levels.
• Adjustments: Adjust quantities, costs, or margins as needed to reflect different pricing strategies or market conditions.

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This SayPro Pricing Calculation Template ensures that all aspects of the pricing process, from cost breakdown to margin analysis, are efficiently handled. It provides an accurate, professional, and data-driven approach to creating competitive yet profitable quotations, ensuring transparency and consistency in the quoting process.