Check a price, test a discount, find your break-even and see what slow stock is costing you. No sign-up. Nothing you enter leaves your browser.
Margin and markup are not the same number. Check the real margin on a price, or work out the shelf price that hits your target margin.
Margin is profit as a share of the selling price ex GST. Markup is profit as a share of cost. A 100% markup is a 50% margin.
GST is removed from the shelf price before any calculation, because GST is not your money.
Quote margin, not markup, when you compare categories or talk to your accountant. Mixing the two is one of the most common pricing mistakes in small retail.
A discount comes straight out of your margin. See how many more units you need to sell just to earn the same gross profit.
Your cost does not change when you discount, so every dollar off the price is a dollar off your profit. Extra volume needed = margin ÷ (margin − discount) − 1.
Try a value-add instead: a gift with purchase or a bundle often protects margin better than a straight percentage off. Keep deep discounts for stock you genuinely need to clear.
Find the sales you need each month, week and trading day before the shop starts making a profit.
Break-even sales (ex GST) = monthly fixed costs ÷ gross margin. Figures are shown inc GST as well, so you can compare them with your till takings.
A small lift in average sale often moves break-even more than chasing extra foot traffic. One extra add-on item per ten customers adds up quickly.
Card fees are easy to ignore because they come out a little at a time. Compare what two merchant rates cost you over a year.
Annual cost = (card sales × rate) + (number of transactions × fixed fee), over 12 months. Small differences in rate become large numbers over a year.
Ask your POS provider whether they add their own fee on top of your bank's merchant rate. Tower Systems does not charge a transaction fee on any plan; your bank or payment provider's merchant fees still apply.
See how many times a year your stock sells through, how many days of stock you hold, and how much gross profit each dollar of stock earns.
Stock turn = cost of goods sold ÷ average stock at cost. Days of stock = 365 ÷ stock turn. GMROI = gross profit ÷ average stock at cost.
Healthy figures vary widely by category, so compare against your own history first.
Run this for each department, not just the whole shop. A strong average can hide one category that ties up most of your cash.
Stock that is not selling still costs money: shelf space, cash, insurance and slow decline in value. Compare holding it with clearing it.
Holding cost = stock value × annual rate × months ÷ 12. Clearance loss = stock value × (100% − recovery). The calculator compares the two and shows the cash you free up by clearing now.
Cash freed from dead stock can be spent on lines that already sell. Check whether your POS flags slow stock automatically so it never builds up in the first place.
Tower Systems POS software tracks margin, stock turn and slow stock from your own sales data, and the Insights Dashboard flags dead stock and missed sales in plain language. Australian made and supported.
Book a free demoAbout these calculators. Results are estimates for planning only and are not financial, tax or accounting advice. Talk to your accountant before making major decisions.
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