Pricing Tool 08

Contribution margin.
Per SKU. Per channel. Before fixed costs.

Revenue minus variable costs only, no fixed overhead. Understand what each unit truly contributes to covering fixed costs and generating profit. Critical for pricing decisions and break-even analysis.

1Product & Pricing

Product Name

Channel

Annual Units Sold

Selling Price per Unit ($)

WS, retail, or net revenue per unit

Annual Revenue

MSRP ($), for reference

2Variable Costs per Unit

Enter only costs that scale directly with each unit sold. Fixed overhead stays out.

COGS, Product Cost ($)

Factory cost, materials

Inbound Freight ($ per unit)

Ocean, air, or LCL per unit

Duty / Tariff ($ per unit)

Or leave 0 if duty-free

3PL / Fulfillment ($ per unit)

Pick, pack, ship per unit

Channel Fee (% of revenue)

Commission, platform fee, rep %

Channel Fee ($ computed)

Payment Processing (% of rev)

Credit card, Faire, Stripe etc.

Returns / Allowance (% of rev)

Avg % of units returned or allowanced

Variable Marketing ($ per unit)

Catalog inserts, samples, co-op

Total Variable Cost per Unit

Variable Cost as % of Revenue

3Volume Scenarios

Low Volume (units)

Base Volume (units)

High Volume (units)

Contribution Margin Ratio - per unit sold

CM per
Unit

Annual CM
(Base Vol.)

contribution

Variable
Cost %

Variable Cost Waterfall, Per Unit

Selling Price-

− Product COGS-

− Inbound freight-

− Duty / tariff-

− 3PL / fulfillment-

− Channel fee-

− Payment processing-

− Returns / allowance-

− Variable marketing-

Contribution Margin / Unit -

Fixed costs are excluded, applied separately against total CM pool

Volume Sensitivity

Volume	Revenue	Total CM	CM Ratio

Contribution margin.Per SKU. Per channel. Before fixed costs.

Contribution margin.
Per SKU. Per channel. Before fixed costs.