Percentages, Add, Subtract, Add again

Hi,

Let's say I have a starting amount of £100, which is my buy price. I add 10% to this for sales margin which is £110. Sometimes I sell direct to customer so that's the end of it. However sometimes I have to sell through a framework and that framework takes 2% from my margin for facilitating the sale to specific sectors.

If I deduct 2% from £110 I get £107.80. This is the price that goes to the framework who then add the same 2% to sell to the customer. However £107.80 + 2% isn't the same £110 as if I was selling direct. But I need it to be.

So essentially the flow is:

distributor to me
me to framework
framework to customer

but before it goes to framework the customer sees my quote as if they were buying direct to approve the price, which then kicks of the pass to framework for them to quote to customer. So my direct price needs to match the framework price.

The 2% is not fixed as it depends on the framework provider. But for example if I do put 2% in a cell, I need to work out what to deduct from the direct sale price so that when 2% is added via the framework it equals exactly my direct sale price.

I'm doing my nut in with this!

Thanks

(Happy New Year!)

How much is Excel and how much is algebra? This kind of problem feels more like algebra to me.

You start with price P, then add 10% -> P+0.1P=1.1P
In some cases, you then subtract and unknown percent 1.1P-x*1.1P=1.1P*(1-x)
You then want to add 2% to this value to get the original 10% over P. If I've followed correctly, the end algebra expression is:

1.1P=1.1P*(1-x)*1.02

The end goal is to solve for x. I expect that, once the algebra part is done, programming the resulting formula into Excel should be straightforward.

Are you able to solve the algebra problem?

Try this...

	I	J
14	110*.98	107.8
15	107.8/.98	110