Price from cost

For party-plan home offices. Enter your unit cost and the most you'll pay the field, and you'll get the lowest retail price that still leaves the company something.

Inputs

Unit product cost ($)

What you pay for one sellable unit (COGS), before field commissions.

Max total field payout (% of retail)

Commissions, overrides, and bonuses combined, as a % of retail.

Company keep target

Target company keep (% of retail)

What home office wants left after product cost and field payouts, as a share of retail.

Non-commissionable share of retail (%)

Optional. Hostess rewards etc. Field % applies only to the commissionable share.

Results

Minimum retail / list price

Gross margin $ (retail - cost)

Field cost $

Company left $

Implied gross margin %

Model

Starts from cost. The comp plan margin stress-test starts from retail. See anatomy of a comp plan.