- Use paid prices, not list pricesRecord the price you paid on the last purchase, including delivery, divided by the quantity received.
- Count packaging as product costThe jar and the label are part of what the customer buys, so they belong in cost per unit.
- Price your own time separatelyAdd a labour rate per unit if you want a true gross margin. Many makers discover their bestseller is their worst earner.
- Re-price when suppliers moveA ten percent flour increase quietly eats a thin margin. Update the material price and every product re-costs itself.
Takeaway. Knowing margin per unit tells you which product to promote and which one to retire or reprice.