Work out cost price of a product through a target RRP

Hello,

I am trying to put together an excel sheet which calculates what the cost price of a product would be based on a target RRP that i enter.
I would like it to be able to be able to calculate it backwards taking into account the following fields:
- VAT
- Retailer margin (40%)
- Distributor margin (45%)
- Conversion from USD to GBP
- Shipping.

I have managed to work it out the other way round (enter cost price and that generates an RRP) by taking away each layer of margin until i get to cost, but need to be able to work it out the other way also.




margin example.PNG


Appreciate any help available on this.

Thanks

Hi Rosie2019,

Welcome to the forum. You need to do the flip side of the calculations you do to build up the cost (from left to right).

My figures don't reconcile to yours because you've miscalculated the distributor margin, but the process is as follows:

RRP £100
VAT (divide the above by 1.2 - £83.33)
Retailer Margin (divide the above by 1.4 - £59.52)
Distributor Margin (divide the above by 1.45 - £41.05)
Currency Conversion (multiply the above by 1.2 - $49.26)
Shipping (divide the above by 1.02 to give the USD cost price of $48.30)


I hope this helps, if you have any queries just give me a shout.

Regards,

Snook

I've rustled up the attached which hopefully explains things a little clearer?

Regards,

Snook

Thanks so much both of you!! That's great!!! I don't think i ever would have worked that out

Amazing thank you!!!