The retail price is the price at which a product is sold in retail trade to the general public and some organizations. Correctly calculated prices are a prerequisite for the profitability of trade enterprises. Calculating the retail price is pretty easy.
Instructions
Step 1
The retail price is added up depending on supply and demand. Its calculation is based on the wholesale price. This is the price at which retailers purchase goods from wholesalers or manufacturers. The trade margin must be added to the original wholesale price. It is calculated taking into account the costs of staff salaries, transportation and packaging of goods and other costs. The planned profit is also added here.
Step 2
The retail price may include various taxes and excise taxes on excisable goods. If the goods are excisable, the basis for calculating the retail price is the selling price. It is equal to the wholesale price plus interest on the excisable goods.
Step 3
The sizes of trade markups by sellers and retailers are set independently, taking into account market conditions. The exception is drugs and medical devices.
Step 4
Trade markups are subject to adjustment. Margins are regulated for baby food, for products of catering establishments serving educational institutions, for some goods intended for sale in the Far North and equivalent territories.
Step 5
In market conditions, retail prices sometimes depend not only on wholesale prices, selling costs, but also on other factors. First of all, on the purchasing power of buyers, on the demand for goods (seasonal demand), on the usefulness of the goods. All this must be taken into account when forming the retail price.
Step 6
There are varieties of retail prices. For example, commissions. They are determined by agreement with the owner of the goods and taking into account the demand of potential consumers. Auction prices are added up based on the maximum demand. But they should never fall below the original price, which was appointed by the seller of the goods or a special appraisal commission. A variety of retail prices are market prices at which agricultural producers sell their products.
