Some Basic Math Help Please

[JMH022]

I always hated "word problems" in math, and I have a real life scenario I need help figuring out.

I have a product for sale for the price of 141.00. After taxes and fees, my total price comes up to 176.39. I figured the percent of taxes and fees by calculating
((total price/base price)-1). This comes up to around 25.1%

My main competitor is pricing their product under mine. Their base price is 139.23 and their total after taxes and fees is 176.36. (Their tax & fees come to around 26.7% because they have more fees than I do.)

The problem: I would like to have my total price to be .02 under theirs. What would my base price have to be to acheive this?

I am trying to build my calculation into an Excel pricing report I receive so I know what to change my prices to when I am being undercut.

Any help is appreciated.

 

[GoKats78]

I think we would have to know the tax rate and your fees...

 

[JMH022]

Thanks for yor reply.

Fees can change depending on the product; that's why I came up with comparing base price and total price to get a total of taxes and fees. In a sense, this is the "tax rate".

 

[MickG]

If I've read you correctly , I would take 2% of his price That gives you your New Total Price then divide that figure by 1.251, which is your Tax percentage. which Gives 138.156

 

[JMH022]

sorry...

.02 was not 2%. It was $0.02. Undercutting them by 2-cents. Sorry for the confusion.

 

[Richard Schollar]

A1 contains competitor's cost
A2 contains absolute value $0.02) by which you want to undercut competitor's price
A3 contains rate of tax on base applicable to product (as a percentage)

Thus A4 would calculate your base value required:

=(A1-A2)/(1+A2)

 

[MAP1168]

Ok. First if you know that you want your final price to be 176.34
because undercut by 2c
Then
if your taxes and fees are .251 (25.1%) then Base +.251*base must = 176.34

So

176.34=1Base +.251Base
and
176.34=1.251Base (combine like terms)
then
176.34/1.251= Base (factor out the constant)

I think you're looking at a price of 140.96

140.96 *25.1% = 35.38
140.96+35.38 = 176.34

make sense?

 

[JMH022]

make sense?

Yes it does! But it sure has been a long time since I did an algebra problem! I think this is the math I am looking for.

Thank you for your help!