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Pricing to include Taxes
Last post 08-17-2009 8:26 AM by Peachtree. 1 replies.
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  • 08-16-2009 9:56 AM

    Pricing to include Taxes

     I am in need of expert advise.  What is the best way to price my jewelry to include taxes but remain in whole $$ amounts? Don't want to bother with having to give out change.

  • 08-17-2009 8:26 AM In reply to

    Re: Pricing to include Taxes

    Here's how I do this:

    I figure the cost of my piece using my normal formula.  Figure the sales tax amount and add that to the cost, then round up to the nearest round number-usually to the next $5 or $10 mark.

    After it sells, I track my sales in an excel spreadsheet.  I include the name of the piece and other info, but here's how I back the sales tax of .073% out using formulas (I hope I can explain it right):

    Row 1, Column A: Insert the final price of the piece.  Lets say that after using my pricing formula, adding sales tax and rounding up, the price for the piece ended up $50.00

    Row 1, Column B: Use formula  =SUM(A1/1.073) which will be the amount of the piece without sales tax--$46.60

    Row 1, Column C: Use formula  =SUM(B1*0.073) which will be the sales tax amount of $3.40

    Using preset formulas really helps and does the job quickly.  I hope this helps.  Please let me know if it doesn't make sense.  Alice

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    http://www.peachtreeks.com/
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