My costs went up. What should I charge now?

It computes three numbers: (a) margin erosion at the current price under the new cost, (b) margin at the current price after the cost hike, and (c) the new sale price required to preserve the prior margin. Together they tell you what to charge once the supplier change lands.

Cost Increase Repricing

Because the math is reversible — the restore price is the one that preserves the existing margin, not the one that yields a fresh margin. Reading it that way keeps the per-sale profit on a flat trajectory (no earnings leakage to absorb the cost hike).

Cost Increase Repricing

Yes — payment and marketplace fees sit on top of cost in per-sale economics. Bring them in (with %) and the restore price moves up by the share of the fee, because every dollar of margin has to clear the case at the same unit economics as before.

Cost Increase Repricing

If new direct cost exceeds the current selling price after relevant variable fees, the sale is loss-making on that basis. Compare repricing, cost reduction, temporary acceptance of the loss and discontinuation as explicit scenarios rather than treating one as the default action.

Cost Increase Repricing