Actual price calculation?

Question

suppose i want to sell a widget and i want to know the current actual price in market. So i go out and ask 10 other sellers. And suppose i get the following

1, 100, 105, 95, 110, 100, 90, 105, 95, 1200

If i calculate the average of this, i'll end up with something around 200 which is NOT the actual value of the widget. But instead, as from the above example, the actual price should be 100

I also thought about median, but median also can mess up the things ..

So i want to ask ppl trained in economics, What is the best way to calculate (determine) the actual price ? what is the formula for it and how is the method called ?

Thanks

Please, i need a formula and not a human-eye approximation. I myself can ofcourse determine the actual price by common sense. But i need a formula which i put in my program and it work.

I'm currently writing a software which has to determine those actual prices for its further calculations

Answer 1

well when it comes to math like this
there may be an outcast like the 1200, which may hinder your results. why dont you use the average price of all but that last number, or get another number that fits the rest of the others.
Also, taht 1 there can lower the averages, and it might be best if you stuck with numbers taht are around the same number range, which seems to be that 100 is the common one, so maybe max. 125, min. 75.

I hope this helps!!

Answer 2

How about finding your "break even point" to operate the business, then determine a competitive retail SP, with a nominal profit margin?

If your asking how to calculate a SP, just divide the complement of your desired markup %, into the cost of goods.
So, if you want a MU of 45%, the complement is 55%. Divide 0.55 into the cost to arrive at the SP.

Answer 3

disqualify the highest number if it isn't around the same as the others