how price lists calculate price?

eMac

Hola,

For the past 49 years I've been trying to understand how the customer price is calculated on smugmug's new price lists, one year more than what it took to find Higg's boson, yet I still can't figure it out.

Is there a formula SM can share as to how to calculate the end customer price?

If I take a $0.38 item and apply a 400% markup, profit would be $1.52. SM 15% commission on profit would then be $0.228. If one adds 0.38+1.52+0.228 = $2.128 but SM price list shows $3 (round up set to 0.00).

You'll be prompted to say $2.128 is being rounded up to $3, and that logic luckily applies on this example but it doesn't apply with many other items on the list. Take a $10.49 item, 400% markup gives a profit of $41.96. SM 15% commission on profit would be $6.294. Customer price should be 10.49+41.96+6.294=$58.74 but SM shows $60.

If SM commission is not on profit but on sale, then .38+1.52=1.9 and (a) if by 1.15 the end price would be $2.18 or (b) if by 1/0.85 the end price would be $2.23. Both still far from $3.

On the second example, 10.49(cost)+41.96(profit or markup)=$52.45 by 1.15 results in $60.31, which if rounded up is set to 0.00 it it then actually rounding down. And, if $52.45 is divided by 0.85 yields $61.70. Yet, SM shows $60.

Take any other item and try to match the calculated price by any method to the price shown by SM list, and it will be certainly easier to find if Schrodinger's cat is dead or alive.

Anyway, if anyone please explain or share a formula that can math SM price calculations.

By the way, I'm using a newly created price list and have been clicking on the apply button to apply any changes or clicking the reset pricing button to make sure everything is on default.

I'm sure it is more easy to accept I'm totally misunderstanding how to calculate the price, rather than smugmug's spreadsheet being wrong. Yet, as mentioned, I've tried many methods and still can't figure out how to reach the same results as smugmug's.

Thx,

TheOnlooker

eMac wrote: »

Hola,

For the past 49 years I've been trying to understand how the customer price is calculated on smugmug's new price lists, one year more than what it took to find Higg's boson, yet I still can't figure it out.

Is there a formula SM can share as to how to calculate the end customer price?

If I take a $0.38 item and apply a 400% markup, profit would be $1.52. SM 15% commission on profit would then be $0.228. If one adds 0.38+1.52+0.228 = $2.128 but SM price list shows $3 (round up set to 0.00).

You'll be prompted to say $2.128 is being rounded up to $3, and that logic luckily applies on this example but it doesn't apply with many other items on the list. Take a $10.49 item, 400% markup gives a profit of $41.96. SM 15% commission on profit would be $6.294. Customer price should be 10.49+41.96+6.294=$58.74 but SM shows $60.

If SM commission is not on profit but on sale, then .38+1.52=1.9 and (a) if by 1.15 the end price would be $2.18 or (b) if by 1/0.85 the end price would be $2.23. Both still far from $3.

On the second example, 10.49(cost)+41.96(profit or markup)=$52.45 by 1.15 results in $60.31, which if rounded up is set to 0.00 it it then actually rounding down. And, if $52.45 is divided by 0.85 yields $61.70. Yet, SM shows $60.

Take any other item and try to match the calculated price by any method to the price shown by SM list, and it will be certainly easier to find if Schrodinger's cat is dead or alive.

Anyway, if anyone please explain or share a formula that can math SM price calculations.

By the way, I'm using a newly created price list and have been clicking on the apply button to apply any changes or clicking the reset pricing button to make sure everything is on default.

I'm sure it is more easy to accept I'm totally misunderstanding how to calculate the price, rather than smugmug's spreadsheet being wrong. Yet, as mentioned, I've tried many methods and still can't figure out how to reach the same results as smugmug's.

Thx,

I'm giving full credit to Bradford on this one. Here is a screen shot of a way you can figure out the pricing:



-KevinW
Support Hero

eMac

Works!
Muchas gracias,