Check your prices against costs
Sound familiar?
“My costs keep going up but my prices haven't moved in years, and I can't tell which ones I'm losing money on.”
By Toby Egbuna
Co-founder, Chezie
What you'll need
- Your business profile. Don't have one? Start here →
- Your price list or menu
- Supplier invoices, or your accounting tool (QuickBooks, Xero, FreshBooks), connected or exported
- Last month's sales by item from your till or store
- Roughly how long each service or job takes
What you'll get
- A cost card for every service or product showing its true cost and margin
- A monthly list of what's losing money, what's under your target and what changed
- The break-even and target price for each flagged item
- The supplier cost increases that caused it
How it works
Run it once a month after your supplier bills are in. It works out what each item really costs you (materials, your time and your staff's, fees, and its share of rent and running costs) and flags the ones losing money or falling short of your target margin. It also shows which supplier increases did it. It recommends what to review, never cuts your prices to compete, and changes nothing until you approve it.