The question of setting a price for a particular product or service torments almost every entrepreneur. Its level should provide maximum business income without leading to a significant drop in demand.
Instructions
Step 1
Determine the amount of costs that are required for the purchase or production of the sold goods. Do not forget to add fixed costs to this amount: expenses for renting premises and fixed utility bills, salaries of employees involved in the production and sale of products, advertising, etc.
Step 2
If you know the amount of costs that goes to the production or sale of one unit of goods, then you can calculate the volume of sales that is required in order to buy fixed costs. When calculating, do not forget that the sales market may have its own limitations, so you may not always be able to sell the amount of products that you have conceived at a certain level of markup.
Step 3
Different groups of goods can have different markup levels. Thus, a high-quality, exclusive, rarely purchased product by customers usually has a large margin. The premium on food and consumer goods should not be high.
Step 4
When setting a price, you need to focus on your competitors as well. To sell more, make your markup slightly lower. But do not get too carried away, because the psychology of consumers can play a cruel joke with you, as they will stop buying your products, associating its low price with low quality.
Step 5
The amount of discounts for regular customers and the costs of various promotions and sweepstakes should also be included in the markup for goods. Tax payers should also do the same, which is calculated depending on the volume of turnover.
