Pricing products and services: understand each sale

The intended result is an explanation: ‘This sale contributes X toward fixed costs; at Y sales, the operating result is Z; delivering that volume requires these hours and this cash before collection.’ These are different calculations, developed throughout the course, including cases where revising or declining an offer is reasonable.

All case values are original and hypothetical. The 6% tax assumptions are educational inputs, not rates applicable to every business. Replace them with the actual base and rule for your activity and jurisdiction. The workbook does not determine tax status, payroll, debt or detailed inventory.

You choose what to read and mark. Understanding is not proof of execution, a submitted proposal or an achieved margin. No account data or business figures need to be sent to Checkmenot.

A useful record distinguishes billed unit, consumption unit and period. A supplier may charge per metre while you use centimetres; a designer sells a package while consuming hours. Multiplying unmatched units produces apparent precision without answering the intended question.

A fixed R$ 3 order charge spread over three kits is R$ 1 per kit. With one kit, it is R$ 3. A historical average can support planning if the underlying average order size is stated and remains appropriate.

Check your definition against a delivery the customer would recognize. If ‘sale’ might mean a quote, instalment, order or unit, the calculation needs a clearer boundary. In the principal cases, one kit or project is the priced unit and proportional rates apply to that unit's price.

Fixed does not mean permanent. Another workspace or hire creates a step change requiring a new scenario. Variable costs need not remain proportional at every volume: supplier discounts, minimum batches and delivery bands may change unit cost.

Electricity can include a monthly base and production-related consumption. Use a justified split and state the approximation. Do not put the entire bill in fixed costs and charge it again to every product. Retain the document or estimate, quantity, unit and reference date.

This classification supports management decisions; it is not a full accounting chart. Label an important unknown as ‘to confirm’ and examine a range. Zero means an actual absence of cost, not unfinished research. The workbook shows n.a. when a necessary input is deleted instead of manufacturing a comfortable margin.

Distinguish compensation for work, reimbursement of a business expense and withdrawal of business earnings. A transfer into a personal account does not establish which occurred. The labour assumption is the total cost used in the case, not the owner's after-tax take-home pay.

Service fixed costs of R$ 4,600 already include R$ 3,000 for work. Deducting R$ 4,600 and another R$ 3,000 counts that component twice. Omitting labour entirely can make a business that merely pays for your time appear more profitable than it is.

Per-delivery labour may behave as a variable cost; a monthly salary within unchanged capacity may be fixed. Use the actual arrangement. Compensation, employer charges and withdrawals require appropriate records rather than treating the fictional figures as personal recommendations.

That loss is already included through the divisor of 27. Adding another 10% to R$ 8 would count the same waste twice. Record recoverable leftovers separately. If outputs have different quality or selling prices, do not treat all units as full-price products.

This batch provides a unit-cost estimate. A monthly scenario of 300 sales does not claim that exactly 300 kits were produced in complete batches of 27 during that month. Opening inventory, partial production or closing stock may exist. A margin workbook is not a physical inventory system.

To adapt, record each input, quantity consumed, purchase unit and cost; total consumption, count saleable outputs and divide. Compare representative batches when material, supplier, process or observed waste changes. No daily measurement routine is imposed.

Before adding actual percentages, confirm their bases match. One commission might include delivery and another exclude it. Add fixed transaction fees as monetary amounts. Early settlement can carry a separate financing charge. The net platform payout does not necessarily deduct every business tax.

Rates here are fictional and constant to make the calculation traceable. The course does not recommend a tax regime or claim that 6% is payable. Monthly, tiered, credit-based or differently assessed charges need their actual rule represented.

For a real transaction, record price, discount, each fee base, withheld amounts and net receipt. If the receipt does not reconcile, investigate a fixed fee, timing difference, adjustment or another transaction. Keep the difference unresolved until explained instead of hiding it in an invented rounded rate.

Contribution answers how much this sale adds before the operating structure that must already be maintained. It allows price, channel and variable cost to be compared consistently. Monthly operating result requires multiplying unit contribution by sold volume and subtracting fixed costs.

At a price of R$ 10, proportional charges would be R$ 1.10 and contribution would be 10 − 11 − 1.10 = −R$ 2.10. More sales then increase losses even before fixed costs. A deliberate loss-making campaign needs its own explicit objective and limit; rising revenue alone does not make its economics healthy.

Reconstruct the price to check the calculation: monetary variable costs + proportional charges + contribution must equal the charged amount. Preserve intermediate precision. Actual transaction-level rounding may differ by provider; model the contractual rule when material.

Already paying for equipment does not make its economic consumption free. Equally, charging its entire R$ 9,600 purchase as this month's operating consumption and adding R$ 240 depreciation would duplicate the same use. The purchase affects cash and assets; depreciation represents use over time.

This is a simple management assumption, not a prescribed tax depreciation schedule. Record usage-based maintenance, variable power and per-delivery rental according to their behaviour; split mixed costs where justified.

When analysing a promotion, retain R$ 3,140 only while the same structure is sufficient. If expansion requires machine rental, another shift or staff, include that incremental cost. Do not extrapolate unchanged fixed costs beyond the capacity that made them possible.

Cross-check with 300 × R$ 15.70 − R$ 3,140. Both calculations must agree. Otherwise investigate duplicated charges, inconsistent volumes or batch costs mistaken for unit costs.

The result depends on sales recognized in the period, not views, quotes sent or maximum capacity. Producing 300 kits and selling 200 does not permit recording revenue for 300. Selling on credit does not imply receiving all the money that month.

At 20 minutes per kit, 300 kits use 100 hours out of 120 productive hours available. The work fits, but that does not establish demand, sufficient inventory or financing. The workbook shows planned and capacity-limited results without silently replacing the volume entered.

Define required inputs and approval points. A revision round means consolidated comments on the same version, not an unlimited stream of messages. Correcting your own mistake differs from a change in customer preference; recording the cause improves estimates without excusing failure to deliver the agreed scope.

Include file preparation, naming, export, questions and predictable corrections. Counting only design time understates delivery time. For unfamiliar projects, use a range and explain what moves the work toward its upper end.

The worksheet supports scope and commercial communication; it is not a ready-made legal contract. Adapt it to the service. Understanding means recognizing the difference between the original request and an additional deliverable, without needing to sell or send anything.

Sebrae's service-pricing method considers time actually devoted to delivery when determining hourly cost. The transferable point is that contracted or personal availability is not entirely sellable time.

Categories must be exclusive. If project briefing is already inside the four-hour scope, do not subtract the same time again as administration. Unsuccessful proposals consume commercial capacity despite generating no revenue. Contingency reserves time before a problem occurs; when used, update the scenario without counting those hours twice.

Capacity is a ceiling under assumptions, not a sales forecast. If demand supports eight projects, allocating costs as if twenty were guaranteed will not produce the missing cash. Compare estimates with representative completed deliveries when useful; minute-by-minute reporting in Checkmenot is not required.

R$ 115 per hour is not the provider's net pay. That contribution still supports R$ 4,600 of monthly costs. It is not a selling rate to multiply by four either, because variable costs and proportional charges must also be recovered.

Allocating fixed costs across 80 capacity hours gives R$ 57.50 per hour; across 60 planned delivery hours it gives R$ 76.67, retaining 4,600 ÷ 60 internally. The difference exposes utilization. Use an allocation to investigate pricing, but do not deduct the allocated costs and the same monthly fixed total again.

Contribution per hour helps compare services when time is scarce. It does not measure quality, demand or perceived value. A high-contribution service may sell rarely; another may fill otherwise unused capacity. Keep those conditions explicit.

The change consumes capacity. Working ten hours beyond availability changes the operating assumption and possibly cost and risk; it does not repair the original estimate. The calculation makes that choice visible without deciding it for you.

To preserve R$ 115 contribution per hour over six hours, a project must contribute 6 × 115 = R$ 690. With R$ 80 variable costs and 10% charges, price = (690 + 80) ÷ 0.90 = R$ 855.555..., rounded upward to R$ 855.56. That is R$ 255.56 above the original price under unchanged assumptions.

This does not establish customer acceptance. Compare keeping the original scope, reducing deliverables, charging for expansion, changing timing or declining. Add extra inputs or support costs when required. Execution errors and poor estimates also cause rework; do not attribute every overrun to the customer.

A lower price for identical work reduces contribution. A smaller package may be viable but requires a new estimate: three designs do not necessarily take half the time when briefing, organization and export have a fixed component. Count that component instead of hiding the same effort in a smaller offer.

For urgent work, check committed capacity before adding a rush fee. More money does not create hours. A fee may compensate for reorganization or outsourced support if delivery remains possible; include coordination costs too.

Keep the accepted record of quantity, format, inputs, revisions and price so requests can be compared with execution. This is a proposal worksheet, not an obligation to report student actions. You can understand the relationship and return when a real offer needs preparation.

Sebrae's markup discussion provides context for a multiplier applied to a cost base. The calculations here are original examples designed to expose the denominator.

If the R$ 20 reference excludes packaging, commission or monthly expenses, the R$ 10 difference is not net profit. Meaning depends on what has been deducted. To leave 30% of revenue after a R$ 20 cost with no other costs, solve price − 20 = 0.30 × price. Price = 20 ÷ 0.70 = R$ 28.5714..., rounded upward to R$ 28.58 to avoid undershooting.

Adding 30% to cost gives R$ 26 and a R$ 6 difference: 6 ÷ 26 = 23.08% of revenue. Substituting the result back into the equation checks the claim. When proportional charges and fixed costs exist, use the complete equation rather than relying on a formula's name.

R$ 30 minus R$ 25.85 allows R$ 4.15 discount, approximately 13.83%, only while costs and rates remain unchanged. At R$ 25.85, contribution before intermediate rounding is R$ 12.0065; the small excess comes from rounding the final price upward.

For the service, a chosen minimum contribution of R$ 400 requires (80 + 400) ÷ 0.90 = R$ 533.333..., or R$ 533.34. R$ 400 is an illustrative choice, not a universal target.

At total rates of 100%, the denominator is zero: no positive price recovers these costs through this equation. Above 100%, a negative algebraic answer is not a commercially useful price. The workbook flags invalid inputs. Include fixed per-order charges in monetary costs before dividing. Lowering the floor means accepting less contribution; make that sacrifice explicit.

Volume changes the fixed-cost allocation. At 200 kits, the same target requires (11 + 3,140 ÷ 200) ÷ 0.69 = R$ 38.69565..., or R$ 38.70. Fewer sales support the same monthly structure.

Using service capacity of 20 projects gives R$ 442.86 for the 20% target. That price depends on selling and delivering all twenty; it does not produce the same margin at fifteen. The workbook uses your entered volume and separately flags an hours constraint.

The equation establishes an economic condition, not what customers will accept. If the calculated price exceeds willingness to pay, investigate cost, scope, channel, differentiation and realistic volume. Do not inflate demand to obtain a preferred price. Zero volume or rates plus target at or above 100% gives no useful positive price in this model and returns n.a.

At 360 kits, the promotional result is 360 × 13.03 − 3,140 = R$ 1,550.80, still R$ 19.20 below the original. Producing 362 requires 120 hours 40 minutes against 120 available. Any capacity expansion needs its own incremental costs.

For services, a 20% discount lowers price to R$ 480. Contribution is 480 − 48 − 80 = R$ 352, and fifteen projects yield R$ 680 rather than R$ 2,300. A price cut does not establish that additional demand will appear.

Compare no campaign, the campaign and its execution costs. An early-payment discount may improve cash, but weigh that benefit against lost contribution and financing costs avoided. When only some units receive the promotion, calculate full-price and discounted groups separately.

Compare commission, payment fees, subsidized delivery, packaging, returns and acquisition rather than one advertised rate. A price preserving contribution may still be uncompetitive; it shows the condition that would need to hold.

If advertising costs R$ 4 per new order containing one kit, contribution after acquisition falls from R$ 7.80 to R$ 3.80. That cost is excluded from the −R$ 800 monthly scenario and must be added if used. Do not assume future repeat purchases to erase current acquisition costs. With actual repeat data, examine cohort revenue and cost over the observed period.

A fixed advertising-tool subscription differs from variable spending to acquire each order. Put each in the appropriate place and avoid including the same budget in both a per-order average and monthly expenses.

Worked comparison: a designer sees a reference of R$ 400 for three designs and charges R$ 600 for six. Dividing gives R$ 133.33 versus R$ 100 per design, but does not settle the decision: briefing, format, revisions, usage rights and quality may differ. Align scope, then estimate your own time and cost. Do not assume work grows linearly with the number of designs.

The Australian government reference distinguishes cost, competition and value-based methods. We use that conceptual distinction, not its jurisdiction-specific tax or legal provisions. This original case does not represent market prices. A defensible decision could offer three designs at a different price, retain six with an explanation of their additional usefulness, or recognize that the customer needs less. Winning every comparison is not required.

Compare break-even with both delivery capacity and plausible demand. Needing 25 projects to support an operation that can deliver only twenty is an economic mismatch. Capacity for twenty does not guarantee demand for ten; the formula does not forecast customers.

At 300 kit sales and break-even of 200, the volume buffer is 100 units, or 100 ÷ 300 = 33.33% of current sales. That is a scenario measure, not a universal tolerance or a reason to ignore cash and mix changes.

With nonpositive contribution and positive fixed costs, no positive volume covers the fixed costs through this equation. The workbook displays n.a. For multiple products, use the contribution from the expected sales mix. A simple average of margin percentages can mislead when prices and volumes differ.

With 120 hours, P1 alone permits 360 units and R$ 5,652 contribution; P2 alone permits 180 units and R$ 4,320. These are capacity ceilings under unlimited demand, not forecasts. If only 250 P1 units can sell, remaining time may support P2, other work or a deliberate reserve.

A mix of 180 P1 and 90 P2 units uses 60 + 60 = 120 hours. Contribution is 180 × 15.70 + 90 × 24 = R$ 4,986. Do not calculate aggregate margin by averaging percentages; divide total contribution by corresponding revenue at actual prices.

Consider demand limits, minimum batches, changeovers, existing commitments and complementary purchases before prioritizing. The indicator organizes the comparison but does not capture every relationship. Products using different resources may not share the same bottleneck.

Do not allocate the entire R$ 3,140 monthly structure to the additional order again and conclude it fails to ‘pay for the month’. Start from the operation that would exist without it and identify changes: materials, charges, preparation, overtime, special shipping, coordination and displaced sales.

At full capacity, the extra order may replace another one. Compare its incremental contribution with the contribution forgone and extra costs. Idle time today does not establish availability during the actual delivery period.

A positive calculation does not guarantee collection or justify vague terms. Confirm deposits, timing, quantity and material dependencies. A special price using spare capacity should not automatically become the standard price: it relies on a particular situation in which the existing structure is already supported.

Separate cause, quantity, revenue effect and extra spending. A refund can reduce revenue, return shipping consumes cash, recovered goods may re-enter inventory, and replacement production uses materials and hours. An unexplained ‘R$ 30 return’ does not reveal which components are included.

Estimate frequency and cost per event, or divide observed total incident costs by a matching order population. Compare expected with actual costs. Applying an expected allowance to every sale and then adding the same actual expenses in full duplicates costs within one result; forecast and actual analysis are different views.

This calculation does not determine return, warranty or support obligations. It records economic consequences while respecting the agreement. Rising remakes warrant investigating materials, instructions, scope or execution; increasing price may leave the underlying cause unresolved.

A quantity reconciliation helps: opening inventory + receipts − issues − losses = closing inventory. Here, 0 + 40 − 30 − 0 = ten units. Separate raw materials, work in progress and finished goods where applicable. Record losses rather than leaving nonexistent stock in the balance.

When purchase prices vary, issue values depend on the costing method and records. This example uses one R$ 8 unit cost to isolate the distinction. The course workbook does not implement multiple batches, moving weighted-average costing or perpetual inventory.

For replenishment decisions, also consider current replacement cost and supplier lead time. A cheap old batch may produce a historical margin that cannot be repeated. Keep actual historical results separate from the next-order simulation.

Reconcile from the result: R$ 1,570 + R$ 240 noncash depreciation − R$ 3,600 increase in receivables = −R$ 1,790. This example has no equipment purchase, debt, inventory change or other adjustment. Costs and charges are assumed paid this month despite partial collection; use actual dates in your operation.

A positive closing balance does not establish that cash stayed positive throughout the month. Supplier payments preceding collections can create an interim deficit. Put receipts and payments in date order to find the lowest projected balance.

More sales on credit can increase upfront cash needs. Supplier terms, customer deposits and smaller batches change timing; price and cost change contribution. Compare both views so an improvement in one does not silently worsen the other.

Independent example: R$ 100 opening cash, R$ 250 supplier payment on day five, R$ 400 customer collection on day twenty. Cash falls to −R$ 150 before closing at R$ 250. Net cash inflow is positive R$ 150, but the R$ 150 interim gap still needs addressing.

Compare earlier customer payment, later supplier payment, a smaller batch or reserved owner funds. If considering credit, include interest and charges. Loan principal increases cash and debt, not sales revenue; repaying principal reduces cash and debt rather than operating merchandise cost.

These examples neither model financing contracts nor recommend a borrowing product. Identify the amount and duration of the gap before accepting more commitments. You can choose how to manage cash and timing without course notifications or required daily actions.

The tabs calculate independently for different deliverables. Produto B26 means saleable units per batch, not total attempts. Servico B33 includes ordinary scope; B34 adds only extra rework. Charges apply to the discounted final price. B59 is the final price required for the target margin, not a list price before discounting.

Required inputs are nonnegative numbers, quantity fields require integers, and denominators must be meaningful. Deleting a necessary input shows n.a. Zero sales preserves fixed costs and produces a negative result; margin without revenue is n.a. Negative contribution remains negative and prevents a useful break-even volume.

Outputs are estimates under entered assumptions. Capacity only checks hours, not stock, funding, demand or skill. Discount, rework, missing-input, zero-sales and 100%-rate boundaries were exercised in the authoring engine and restored. Native Excel interaction has not been tested. In another application, first reproduce the reference results before replacing inputs.

Record value, unit, period and origin. ‘R$ 2 packaging per kit, supplier quote checked on a stated date’ is more reusable than ‘packaging: 2’. Identify estimates so they can be replaced by documents or observations.

Retain conditions that might invalidate the calculation: input price, order size, revision count, channel rate or available hours. Reconsider when those conditions change rather than following an imposed reporting schedule.

Use paper, documents or your preferred spreadsheet. A project code often suffices instead of customer personal data. The aim is to revisit a decision and understand its numbers, not to build an entire administrative system before starting. Distinguish not applicable from necessary but unknown; the latter remains unresolved rather than zero.

Reconstruct price by adding contribution and variable costs. Reconstruct monthly result as unit contribution × volume − fixed costs. Reconstruct hours as units × time. Compare an actual transaction with its provider statement to identify omitted charges.

For unexpectedly high percentages, inspect the denominator: profit divided by cost is not margin on revenue. If a target price falls sharply as volume increases, inspect the fixed-cost allocation and verify that demand and capacity support that larger volume.

Correct the origin and recalculate affected outputs. Do not replace a formula with a preferred answer. If a difference remains, record its size and the missing information. An explicitly provisional result is more useful than precision created by unexplained offsets.

The decision need not be a price increase. It may be reducing waste, changing channel, changing the package, limiting a promotion, charging for extra scope or discontinuing an unsustainable offer. Numbers explain the choice; actual market response and operating conditions still need observation.

Record unconfirmed rates, estimated time, replacement cost, plausible demand or collection timing. State the event that would justify recalculation: a new packaging price, a changed channel fee or revisions exceeding the agreed scope.

You may mark this knowledge as understood without operating a business or sending a quote. It remains available for later consultation. The outcome is an explainable decision, not a reporting requirement imposed by the course.