Home / Business / Budgeting / How to set the price

How to set the price


In addition to the ability to sell at first you will need to set the price correctly for the goods</a>

Entrepreneurs starting their own business, sometimesGet into a difficult situation. You bought a trial lot of goods, but you do not know your capabilities as a seller yet and do not know if you can fully realize it, or some part will remain unsold.

In addition to the ability to sell at first you will need to set the price of the goods correctly.



To establish the price it is necessary to expand the concept of "price"? On the economic components. Structurally, the price of each item is the sum of all your costs:
? Associated with the implementation of activities (rent, taxes, utility payments, wages to employees, etc.)

? Costs for the purchase of goods for resale-

? It also contains a certain share of the profit that you expect to receive.
Thus, if you manage to sell a certain quantity of goods at a given price for a month, then the month can be considered commercially successful.


Next, you need to determine the mark-up. If we continue our example from the trade, then the mark-up? It is an extra charge to the purchase price of each unit of the commodity, due to which you will be able to pay the related activities costs and make a profit. In the practice of retail trade, there are some average indicators of margins, depending on the group of goods:
? The average mark-up on food is 25% -

? Extra charge for clothes and shoes? From 50 to 100% -

? Extra charge for small souvenirs and jewelry? From 100% -

? Extra charge for auto parts? In the range of 30-60%.
Knowing these indicators, you will be able to set the price for your product, corresponding to the market.


After the first month of trading,Your expenses and income in one report for yourself. If you managed to realize the planned volume at a good price, pay all the costs incurred and get a small but profit? The calculation was done flawlessly. If you can not achieve the planned result, analyze the reasons and, perhaps, you will reduce prices a little and will be able to find out what can be done differently and more effectively.

How to set the price Was last modified: June 20th, 2017 By Kyutyikn
It is main inner container footer text