Setting up your costs Answer 4 of 46 Updated

What is Margin per unit on the Products page?

Margin per unit is what one piece leaves you after paying for the piece itself. It is the sales price without VAT, minus the unit cost. The column shows it as an amount and as a percentage of the price without VAT.

An example: a hoodie sells for €59,50, and that price includes 19,0% VAT. Without VAT it is €50,00. It costs you €30,00. So its margin per unit is €20,00, which is 40% of €50,00.

The VAT is taken out with the rate this product's own sales carried, so the margin matches what you really keep. A dash means something is missing. Either the product has no unit cost yet, or your store has not sold anything, so its VAT is not known. A margin below zero means every piece sells at a loss.

This is not yet your full profit on the piece. Shipping, packing, payment fees, marketing and overhead come later on your P&L, your profit and loss statement. Think of it as CM1 for one piece at full price. CM1 is what you keep from your sales after paying for the products. The ring in the product's panel shows the same split as a picture.

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More in Setting up your costs

All 46 questions
  1. 02 How do I add product costs?
  2. 03 What does the Products page show?
  3. 04 What is Margin per unit on the Products page? You are reading this
  4. 05 What do Compare-at price and Price reduction mean on the Products page?
  5. 06 What does the Per unit ring in a product's panel show?

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