Calculating Net And Gross Selling Price

  • Determine the cost of the recipe

  • Decide on what Cost % you would like to accomplish, If you prefer working from a Gross Profit (GP)%

Net Selling Price

Example:

Cost of Dish £1.56

Id like to achieve a 25% cost. If working from GP% then convert to cost % by 100 – GP% = Cost %

Determine the pricing factor, this can be done by dividing the cost % into 100 (100/25 = 4)

Your pricing factor = 4

Now calculate the net selling price by multiplying your cost of dish by the pricing factor = £1.56 * 4 = £6.24

This now establishes that your Net selling price should be £6.24

This calculation can be simplified to:

£1.56/0.25 (25% written as a decimal) = £6.24

Gross Selling Price

Net selling price = £6.24 and adding VAT at its current rate 20%

Gross selling price = £6.24*0.2 (20% as a decimal) = £1.248

Add the net selling price and the vat £6.24 + £1.248 - £7.488 Rounded to £7.49

Costing Tool Rule

  1. Changing only the vat or the gross price in a recipe within a menu - doesn’t recognise a change

  2. Remove the search text from the vat rate drop down when creating a new recipe within a menu

  3. Add the vat rate field when you create a new recipe category from a new recipe

  4. Each recipe in a course can have a different vat cost and gp % (incl selling price) the change does not affect the recipe in the recipes list