My Math Forum  

Go Back   My Math Forum > High School Math Forum > Elementary Math

Elementary Math Fractions, Percentages, Word Problems, Equations, Inequations, Factorization, Expansion

LinkBack Thread Tools Display Modes
August 11th, 2017, 11:24 AM   #1
Joined: Aug 2017
From: Portsmouth, UK

Posts: 2
Thanks: 0

Business equation help needed please.

Hi All,

I'm new to the site, so apologies if I have posted in the wrong section.

Also, even greater apologies for asking a question that is probably really simple to answer.

I'm starting a business, selling through a third-party vendor, and need to work out a final price for my customers.
What I mean is, supposing I want to earn £1000 for an item, but the vendor takes 5% commission.

If I charge the customer £1000, after commission I receive £950.

So I add on the £50 commission and charge the customer £1050. But then the commission is £52.50, so I still only receive £997.50.

I'm sure there must be an equation to help me work out what price to charge, so that after commission I still earn my £1000, and I guess I need to work it "in reverse."

I'm not asking how much I should charge to earn the £1000, but what would be the equation to work out the final price for the customer. This is because I would have items with varying prices.

I hope that all makes sense. Any help greatly appreciated.

realdumb is offline  
August 11th, 2017, 11:40 AM   #2
Global Moderator
Joined: Dec 2006

Posts: 19,502
Thanks: 1739

Think of it in terms of what you're left with. If the vendor charges 5% commission (or if there's a 5% tax or whatever), you are left with 95% of the price, so if you know you want to be left with, say, £950, just divide that by 0.95 to find the price the customer pays.

It's quite often the case that the concepts that are most convenient for dealing with a problem are different from those that were used to define the problem.
skipjack is online now  
August 12th, 2017, 11:56 AM   #3
Joined: Aug 2017
From: Portsmouth, UK

Posts: 2
Thanks: 0

Hi Skipjack,

many thanks for your reply. It all makes sense now.

realdumb is offline  

  My Math Forum > High School Math Forum > Elementary Math

business, equation, needed

Thread Tools
Display Modes

Similar Threads
Thread Thread Starter Forum Replies Last Post
Real world math help needed with my business xmartel Algebra 0 March 30th, 2015 05:07 PM
Easy business equation franktunes Applied Math 1 October 2nd, 2009 07:38 PM
Equation Needed web wheeler Calculus 5 October 21st, 2008 10:22 AM
Formula to calculate funds needed for business sot Algebra 1 September 3rd, 2008 04:02 PM
equation needed akkad Algebra 7 May 20th, 2008 07:38 AM

Copyright © 2018 My Math Forum. All rights reserved.