Welcome to your new most useful tool for figuring out the cost and sales price of your merchandise. The calculator is divided into four sections:

  1. Supplier Cost Per Unit - What your supplier will charge you for the product.
  2. Import Cost Per Unit - What you will need to pay in imports and shipping charges including shipping, duties, clearance, and local delivery costs. (If you aren't sure of duties for your item you can look up your item to find the code and estimated duty percentage here https://hts.usitc.gov/
  3. Buyer Cost Per Unit - This section lets you add any costs that are added to your product (before margin) once it arrives to you. 
  4. Calculate Your Final Price - Here you can add in the margin multiplier, any sales rep commissions, and charitable give back associated with each unit you sell. Play with the margin to get to your optimal wholesale and retail price. Round up or down to arrive at your final prices and type that price in the two rows titled "Your Final Rounded Wholesale Price" and/or "Your Final Rounded Retail Price".

If you are a supplier you can use the first section of this calculator to figure out what your price is to the buyer. You can also see how many costs are added to your product along it's path to market to understand the final retail price buyers sell it to the end consumer for.

You can use the calculator right here online, just fill in your amounts and it will calculate your costs, or click the download page icon (the one with the arrow) at the bottom to download a copy to use on your own device for your personal business use.

 

 

Does this calculator actually tell me what is a Fair Trade Price? Yes and no. This calculator helps you look at all of the costs of a product, how much labor and material cost, and if there are social programs funded by that product that are associated with either the supplier or the buyer. To judge the true fairness you need to know two more things. 

  1. First what is the minimum wage in the country you are working in? This isn't always easy to find. Once you have the minimum wage what is a living wage (better than minimum) in a local context for the country/area you are buying or selling from? Buyers, talk with your supplier partners about their area, the local minimum wage, and what they believe is a living wage in their location. Producer companies share this information with your buyers. It is hard to find a comprehensive list of minimum wages for all countries but this resource on Wikipedia comes close and gets updated: List of Minimum Wages By Country  
  2. How long does each product take to make? Knowing how long a product takes, how many people work on one product, and how many people are working on the total order, helps you figure out how much an individual producer will earn from working on your product.  Time studies help both suppliers and buyers discover how much an individual worker can earn and determine if this is a fair wage.  

Fair Trade is trading relationship rooted in these 10 Core Fair Trade Principles.  This calculator, along with the other resources in The Social Justice Startup Toolbox were created to help you access and execute a business built on these core principles.

(You may not redistribute this calculator or post it online without express written permission.)