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How To - Use the Margin Calculator
How to use the Excel margin calculator.
How to use the Excel margin calculator.
1
Step 1 of 7

Opening the margin calculator

  • Open the correct calculator for your branch.

  • Select the tab at bottom of the excel sheet for whatever product group you are pricing, e.g. Passenger Car, Passenger Commercial, AT and MT.

2
Step 2 of 7

Input Cost

  • In the correct tab, input the cost of the tyre you are pricing into the top box with yellow highlighting . Ensure that the cost is excluding GST.

3
Step 3 of 7

Select price category

  • Search down the list of prices below to find the category that the tyre you are pricing fits into.

4
Step 4 of 7

Quoting the customer 

  • Round the price to the nearest $5 and quote the customer. Please note these prices are including GST and can be adjusted either up or down by up to $15 before we are either making too low or high a Gross Profit.

5
Step 5 of 7
<p><strong>Example 1</strong></p><ul><li><p>Customer is looking for a price on a cheap 195/65R15. The Hifly HF201 is in stock and costs $58.90 + GST so after going into the margin calculator and clicking on the ‘Passenger Car’ tab, enter the cost into the top highlighted box and search down the options for the correct price. The top line would look like the picture</p></li><li><p>This price can then be adjusted by up to $15, but I would recommend adjusting the lower priced tyres by only up to $10. In this case I would usually quote the tyre at $130.00 incl GST.</p></li></ul><p></p>

Example 1

  • Customer is looking for a price on a cheap 195/65R15. The Hifly HF201 is in stock and costs $58.90 + GST so after going into the margin calculator and clicking on the ‘Passenger Car’ tab, enter the cost into the top highlighted box and search down the options for the correct price. The top line would look like the picture

  • This price can then be adjusted by up to $15, but I would recommend adjusting the lower priced tyres by only up to $10. In this case I would usually quote the tyre at $130.00 incl GST.

6
Step 6 of 7
<p><strong>Example 2&nbsp;</strong></p><ul><li><p>Customer is looking for a price on the 265/65R17 Maxxis Razr AT811. The 10ply option is in stock and costs $338 + gst so after going into the margin calculator and clicking on the ‘AT’ tab, enter the cost into the top highlighted box and search down the options for the correct price. The 7th line down would look like the picture</p><p>This price could be adjusted by up to $15 for the average customer or dropped by up to $25 for a good customer who has dealt a lot with us. In this case I would often quote the tyre at $515 incl GST while if I was combining the tyre with a set of rims I would quote it at $499 incl GST.</p></li></ul><p></p>

Example 2 

  • Customer is looking for a price on the 265/65R17 Maxxis Razr AT811. The 10ply option is in stock and costs $338 + gst so after going into the margin calculator and clicking on the ‘AT’ tab, enter the cost into the top highlighted box and search down the options for the correct price. The 7th line down would look like the picture

    This price could be adjusted by up to $15 for the average customer or dropped by up to $25 for a good customer who has dealt a lot with us. In this case I would often quote the tyre at $515 incl GST while if I was combining the tyre with a set of rims I would quote it at $499 incl GST.

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Step 7 of 7

Thank you for viewing these instructions on how to use the margin calculator. You should now have a greater understanding on this topic.