
Elementary Math Fractions, Percentages, Word Problems, Equations, Inequations, Factorization, Expansion 
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August 11th, 2017, 12:24 PM  #1 
Newbie 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 thirdparty vendor, and need to work out a final price for my customers. What I mean is, supposing I want to earn Â£1000 for an item, but the vendor takes 5% commission. If I charge the customer Â£1000, after commission I receive Â£950. So I add on the Â£50 commission and charge the customer Â£1050. But then the commission is Â£52.50, so I still only receive Â£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 Â£1000, and I guess I need to work it "in reverse." I'm not asking how much I should charge to earn the Â£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. RD 
August 11th, 2017, 12:40 PM  #2 
Global Moderator Joined: Dec 2006 Posts: 18,594 Thanks: 1492 
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, Â£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. 
August 12th, 2017, 12:56 PM  #3 
Newbie Joined: Aug 2017 From: Portsmouth, UK Posts: 2 Thanks: 0 
Hi Skipjack, many thanks for your reply. It all makes sense now. RD 

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