I buy the product in dollars from abroad; how do I work out its selling price in riyals with shipping and fees?
Convert the cost to riyals first, at the rate your card actually charged, then enter it as the product cost. An item at 26 dollars with a rate of 3.75 costs 97.5 riyals, and with shipping of 15, 3% fees and a 30% margin it should sell for 167.91 riyals.
The tool does not convert currencies
The Selling-price calculator has a currency menu, but it only changes how amounts are displayed, and the tool holds no exchange rates. Everything you enter must be in one currency: the one you sell in. So conversion is a step before the calculation, and the result is only as good as that step.
Which exchange rate to use
Not the one a search engine shows. Use the rate on your card or transfer statement for the last purchase, because it includes the bank's spread. If the bank adds a separate currency conversion fee, include that too. The simplest method: divide the amount taken from you in riyals by the number of pieces, and you have the real cost per piece.
26 dollars at 3.75 = 97.5 riyals. With local shipping of 15, 3% fees and a 30% margin: price 167.91.
If the bank adds a 2% conversion fee, the cost becomes 99.45 and the price 170.82.
If the real rate on your statement was 3.85, the cost becomes 100.1 and the price 171.79.
How far the numbers move with the rate
A ten-halala change in the rate raised the required price by about 3.88. And if you priced at 167.91 and then bought the next batch at 3.85, your real margin drops to about 28.45% instead of 30%. You only see that if you run the numbers again.
So before pricing, try a rate a little worse than what you paid and look at the result. If the gap matters in your market, build a buffer into the price, or reprice with every new purchase batch.
Other import costs
- International freight from the supplier to you is part of the cost per piece, not the shipping field. Divide it by the pieces and add it to cost.
- Customs duty and any clearance fees you pay are spread across the pieces the same way.
- The calculator's shipping field stays for delivering the order from you to your customer.
- International freight is often charged on size, so estimate it with the Volumetric shipping-weight calculator before you order.
Once the batch is sold, compare your real margin with the plan in the Profit margin calculator, using the true cost after every invoice has arrived.
Common questions
Can I work in dollars and convert the final price?
You can if every cost is in dollars, but local shipping and fees are usually in riyals, so converting the cost first is simpler.
Does the tool track the exchange rate?
No. You enter the cost after converting it.