Procedure · Stage 5 · Every founder
Pricing and the cost sheet
Awaiting CA/CS check — do not rely on it yet. The legal, tax or patent lines on this page have not been checked by a CA, CS or patent agent.
The mistake
The mistake
“Quoting a price, then finding the product can't be made at it.”
01Why it repeats
The loss shows up months later as thin cash.
Pause
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02Where it sits
- Stage
- 5
- Exit test
- A floor price at each order size
- Proof file
- The cost sheet at three volumes; the CA's check of the GST line
03The procedure
Answer the pause question above, then choose Show the procedure.
- 1Price per unit = (variable cost per unit + fixed costs ÷ units) × (1 + markup), GST on top.
- 2Work it out at each order size you might quote, using the calculator below.
- 3Ask the CA to confirm how fixed costs are spread and the GST rate for your product's HSN code.
Ask your CA for your HSN rate
| Order size | Fixed cost per unit | Cost per unit | Price before GST | Price with GST |
|---|---|---|---|---|
| 100 | ₹2,000 | ₹2,150 | ₹2,687.50 | Add GST % |
| 1,000 | ₹200 | ₹350 | ₹437.50 | Add GST % |
| 10,000 | ₹20 | ₹170 | ₹212.50 | Add GST % |
| 10,00,000 | ₹0.20 | ₹150.20 | ₹187.75 | Add GST % |
Illustrative. The CA confirms how fixed costs are spread and your GST rate.
The cost sheet sets the floor; what customers will pay sets the ceiling. If the ceiling is below the floor, it is a business-model problem, not a pricing one. The CA confirms how fixed costs are spread and the GST rate for your product's HSN code.
04The template
Cost sheet and price-per-volume calculator
Price per unit = (variable cost per unit + fixed costs ÷ units) × (1 + markup), GST on top, at each order size.
05India specifics
- GST portal (registration and returns)Last verified: Awaiting check
06Last verified
Last verified: Awaiting check
07The why
Founder Indus: Is your price page confusing buyers? That's a Decision Review on Founder IndusGuidance, not advice
Guidance, not advice
This is guidance, not advice. Confirm your own case with a CA, CS or patent agent.
08Track additions for this stage
No track additions at this stage.
Ledger line
Write one Mistake Ledger line for this gate, pass or fail: what you expected and what happened.
Open the Mistake Ledger