Pricing For Profits


Pricing is an extremely important part of our business, to make sales and our ability to make money in our business.

This course is all about getting pricing right.


Getting The Fundamentals Right

First and foremost our focus here is making sure we understand the basis that is needed to make our business profitable. That means we have to get our fundamentals right.

We will be looking at these matters on an item level perspective as well as on a company wide perspective.

This program will not only get you to truly grasp the terms and behaviors of gross profit, gross profit margin, cost of goods sold (COGS), net profit, markup and margin, but more importantly give you insights to how you can affect these for much grander results faster and with more magnitude.


Knowing What Your True Expenses Are So You Do Not Under-Price or Under-Quote

You’ll also learn about the true and real costs of labor for your business. Without this greater insight into your business many of your decisions are just based on guesswork and winging it.

Lean some of the things I will walk you through and it’ll open your eyes. You’ll definitely think of business and how you handle your business differently, and you’ll be able to in future to make educated business decisions rather than to rely on luck and hope.


The course consists of 5 modules:


I believe the major goal for a business should be to make a profit. Yes, a business can have a lot of other worthwhile goals (e.g. doing good causes or similar), but ultimately without profits a business would eventually go under and that would be the end of it.

– Mikkel Pitzner

aka The Automated Millionaire

Module 1 : Gross Profit & Gross Profit Margin & The Dynamics Of Business

A quick look at the fundamentals first. it’s important that we understand the terms Gross Profit and Gross Profit Margin. There’s a lot of confusion on the Gross Profit Margin, so we need to iron out this confusion.

With the fundamentals in place we can now look at what happens in our business as we affect our business with various efforts. What happens when we increase Sales, and what happens when we make changes in our efficiency.

You may be surprised at some of the outcome, and it’s my hope that after watching this module you’ll have a renewed motivation to go and instantly improve your business, so you’ll make more money.


The Automated Millionaire Best Business Practices is a series of best business practices described and written up, often with examples etc.

This module includes The Automated Millionaire Best Business Practices on Gross Profit & Gross Profit Margin And The Dynamics of Business. Downloadable PDF.

The Automated Millionaire Best Business Practice on Gross Profit, Gross Margin and The Dynamics of Business

Module 2 : Markup VS. Margin

The concepts of Markup and Margin are very simple, but business owners often confuse the two terms: Markup and Margin.

Both figures are used to set prices and to help you gauge profitability of your products/services, and even your entire business operation.

However, the two terms reflect profit differently and it’s important to understand the difference. The following will give you a deeper insight into the two terms and how to understand them and how to use them in your business, so you can ensure you will get the desired results.


This module includes The Automated Millionaire Best Business Practices on Markup VS. Margin. Downloadable PDF.

The Automated Millionaire Best Business Practices on Markup Vs. Margin

Module 3 : Labor Burden

An employee’s pay rate and what you actually pay for that employee are not the same. It seems simple, but it’s also easy to overlook.

Labor burden describes the costs a business incurs to employ a worker, besides the actual cash wages or salary that it pays to the employee. Labor burden includes payroll taxes, retirement benefits, health benefits, worker’s compensation, life insurance, pensions and other fringe benefits.

Labor burden can be a significant portion of the total cost of carrying employees, especially when employers provide many fringe benefits.


You definitely don’t want to lose out on getting this download.

In the video I walk through an example that shows you very detailed how to find your real Labor Burden, and not least how to find it in relations to the hours an employee is actually productive and possibly billable.

Although I strive to make the videos as great as possible, I believe this kind of working example is a challenge without the printed word in front of you

Understand most of what’s in this PDF and you’ll have a much better basis for making good and sound educated decision in and for your business.


The important things about Labor Burden is written into this Best Business Practices on Labor Burden.

Don’t cheat yourself out of the profits you should have been making. Easy to follow downloadable PDF.


Module 4 : Accounting For Your Overheads

Overhead describes all of the costs a business incurs for things that do not directly produce output. The cost of materials and parts used to build products and the cost of paying production workers who put products together are not overhead expenses, because they contribute directly to output. Other expenses, such as rent, utilities, business insurance and the cost of supplies that do not become a part of any products are overhead expenses.


Download PDF Resource


Module 5 : Pricing For Profit

So far in the modules leading up to this one we have learned about the follow:

– The Fundamentals of Gross Profit, Gross Profit Margin and the dynamics of business,

– Insights on Labor Burden,

– Overhead Absorption Factor

– and the various formulas

– We also reminded ourselves about how we need to have in mind all the costs that we are faced with in our business, we now need to see how we actually can implement our prices.

Downloadable PDF Resource


Bonus 1: The Automated Millionaire Gross Profit Margin Tool

The Automated Millionaire Gross Profit Margin Calculator Tool is a simple Excel tool that can help you quickly calculate out your Gross Profit Margin (%), and enables you to quickly assess the effect from changes to your markup or choice of margin you may be contemplating for your business.

Getting a good understanding of the dynamics of markup and margin can mean the difference between success and no success with you

Markukup Margin Calculator
The Automated Millionaire Markup vs Margin Chart

Along with this Markup / Margin Calculator Tool comes this video walk through on how to use the tool and how to think about what you are finding and seeing as you make changes in the inputs.

Bonus 2: The Automated Millionaire Simple Labor Burden Calculator

The Automated Millionaire Simple Labor Burden Calculator.

This simple calculator takes your Labor Cost per Hour and adds in your FICA, FUTA, and SUTA percentages (you’ll enter the appropriate percentage number relevant for your business).

Also it has entry cells for your General Liability Insurance Rates and your Workers’ Compensation Rate.

Using all of these entries to calculate the true labor cost per hours, plus provides you with the percentage Labor Burden you can use for a probably a number of employees in your business.

Note: This calculator does not account for other employee benefits and expenses. Also this one does not have computation for actual productive/billable hours versus total hours you are paying the employee for.

If you need more of that, the go for Bonus number 3 that has more extensive calculations for your labor burden.

Even though this tool is super simple, we provide a training video to go along with this tool.

Bonus 3: The Automated Millionaire Fully Loaded Employee Cost Calculator

The Automated Millionaire Fully Loaded Cost Calculator.

It has entry cells for your General Liability Insurance Rates and your Workers’ Compensation Rate.

It has a drop down choice for your State which will enter your State Unemployment Tax rate.

Get a better understanding of all your costs of your employee. Factor in not just the various payroll taxes, but also the expenses of insurance and inventory or other overhead expenses which you may feel is relevant to account for in your Labor Burden.

Has a few extra slots for line items of your choice that may be relevant to your business in determining your true labor costs..

Note: This calculator also has a computation for changing either hours per week or weeks per year worked or both. You can use this part using estimation and get insights to the cost of your employee.

Along with this Fully Loaded Employee Cost Calculator comes a video instruction. It’s a simple tool, but sometimes an added video walk-through is good to have.

What's Your Level Of Commitment To Fix Your Business Askes The Automated Millionaire

The Automated Millionaire, its programs and coaching has been created by lifelong entrepreneur and successful business mentor.

Mikkel’s entrepreneurial journey is vast and very extensive, with experience spanning Denmark, Norway, Sweden, Germany, Poland, the UK, US and Canada. Several cultures, currencies, countries, and States. Many unrelated industries and businesses in all kinds of stages and developments.

His journey includes job positions at every level of an organization from the very bottom of the totem pole working his way up to the very top of same company. It includes private companies as well as publicly traded companies.

His big focus now is helping as many business owners and entrepreneurs create the results they need to pave the way for the lives they have always desired, and for the benefit of not only themselves, but also for their families, and the people they employ and their families.

Mikkel offers this via his brand The Automated Millionaire.

The Automated Millionaire helps small and medium sized businesses achieve greater profits and more efficiently run operations without having to work harder and we do so by implementing a specific and simple 8-step business method called The Automated Millionaire Business System

Mikkel Pitzner (or The Automated Millionaire) can not and does not make any guarantees about your ability to get results or earn any money with our ideas, information, tools, systems, methods or strategies.

Nothing on this page, any of our websites, or any of our content or curriculum is a promise or guarantee of results or future earnings, and we do not offer any legal, medical, tax or other professional advice. Any financial numbers referenced here, or on any of our sites, are illustrative of concepts only and should not be considered average earnings, exact earnings, or promises for actual or future performance. Use caution and always consult your accountant, lawyer or professional advisor before acting on this or any information related to a lifestyle change or your business or finances. You alone are responsible and accountable for your decisions, actions and results in life, and by your registration here you agree not to attempt to hold us liable for your decisions, actions or results, at any time, under any circumstance.

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