Pricing Strategy Worksheet

Work out your true costs, set prices that make a profit, understand margin versus markup and find your break-even point.

Editable Word document
9
10pages
Guidance notes included
aml consultancy solutions

Starting a business

Pricing Strategy Worksheet

About this document

What it’s for

A step-by-step worksheet for setting and reviewing prices. It takes you through costing, cost-plus and market-based pricing, margin versus markup, day rates for service businesses, break-even and the real effect of discounts – each with a worked example and blank tables to complete.

When to use it

  • Before launching a product or service
  • When costs rise and you need to review prices
  • Before offering discounts or quoting for a large job

What’s inside

The document is laid out in the sections below. Each one comes with a plain-English guidance note explaining what it does and what to change.

  • Part 1 – Your pricing objectives
  • Part 2 – Direct (variable) costs per unit
  • Part 3 – Fixed costs (overheads)
  • Part 4 – Setting a price for a product
  • 4.1 Cost-plus pricing
  • Worked example – chopping boards
  • 4.2 Margin versus markup
  • Worked example – cost £40, price £60
  • Part 5 – Setting a day or hourly rate for a service
  • Part 6 – Break-even
  • Worked example – chopping boards at £60
  • Your break-even calculation
  • Part 7 – Testing your price against the market
  • Part 8 – VAT and legal points on pricing
  • Part 9 – The real cost of discounting
  • Worked example – a 10% discount
  • Price change log
  • Pricing approved by

How to complete it

  • Work through Parts 1 to 3 to find your full cost
  • Use Part 4 (products) or Part 5 (services) to set a price
  • Check your break-even point in Part 6 and test the price against the market in Part 7
  • Record the agreed prices and review date in Part 10

Key points to check

  • Prices to consumers must include VAT and all compulsory charges

Our templates are professionally structured starting points for UK businesses, not legal advice. For anything complex, unusual or high-value, have your final version checked by a solicitor.

Included in the pack

Starting a business

£20

for every document in this category

Editable Microsoft Word files

Guidance notes in every document

Written for UK businesses

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