It's no secret that the price of goods in retail is different from the wholesale. And the wholesale and retail prices, in turn, differ from the purchase price, and so on, up to the cost of goods. In this regard, a simple human question arises: what is the amount of the margin? How to calculate the markup on a product?
Instructions
Step 1
Of course, it is possible to calculate all this, but with many reservations. First of all, you need to know that the trade margin changes depending on the line of business, that is, on the type of goods sold. For example, a premium of less than 30% is not practiced on alcoholic beverages. As for food products, here we can confidently talk about a trade margin of 25%, and for wholesalers - 10%.
Step 2
According to statistics, in the past year, the mark-up on goods in retail chains was from 16 to 30%.
Step 3
Taking into account the information provided, you can use elementary calculations using a calculator and subtract the estimated amount of interest from the purchase price. Thus, you will receive a purchase price that is closer to the cost of the item. Keep in mind that the larger the retail chain, the lower the trade margin, and vice versa, the smaller the seller, the higher the margin.
Step 4
The ideal option for calculating the trade margin is the method when the purchase price is known. Then, you subtract the purchase price from the purchase price and get the amount of the markup in absolute terms or just in money. To understand the percentage of the trade markup, take the purchase price and divide it by the purchase price. Subtract one and multiply by 100. This time, you get the calculation of the margin in relative terms.
Step 5
Now you have at your disposal a set of tools with which it is possible to make an independent calculation of the trading margin.
