Any business that sells goods or promotes services faces pricing issues. The pricing process is very painstaking and includes a number of parameters that should not be forgotten when deciding on the final cost of products or services.
It is necessary
- - Documentation of the company for the purchase of materials, goods, raw materials, as well as the costs required for production and normal operation;
- - calculator;
- - notebook and pen.
Instructions
Step 1
Calculate the manufacturer's wholesale price. This parameter consists of two components - the cost of production (raw materials) and the profit of production. For example, a store buys its products from a furniture factory. The furniture factory produces wooden furniture, the cost of which is determined by: the cost of wood + the factory's costs for wages, electricity and water + transportation costs. The profit (margin) of the factory is added to the cost price and the manufacturer's wholesale price is obtained. The factory has the right to establish a mark-up on products independently to cover the costs of furniture production and make a profit.
Step 2
Calculate the wholesale selling price equal to the sum of the manufacturer's wholesale price and indirect taxes (VAT, excise) that the manufacturer pays to the budget. In the above example, 18% VAT is added to the factory's wholesale price.
Step 3
Calculate the wholesale purchase price equal to the sum of the wholesale selling price and the intermediary markup (profit, VAT, costs) of the intermediary. In the proposed example, it is worth adding to the wholesale selling price the cost of the services of the transport company that will deliver the furniture to the store.
Step 4
Determine the total retail price, which is the sum of the wholesale purchase price and trade markups. In this case, the store will add to the amount of the wholesale price a trade margin, VAT, own costs of wages for employees, electricity, rent of premises.
