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If the company wants to get the same profit

  If the company wants to get the same profit in April as in the previous month, it needs to recalculate the retail price of the ball. Having data on the new cost price, the required trade margin and the gross profit, it is not difficult to make calculations. The required gross profit is added to country email list  the cost price, and the final price will be 156 rubles. Now the markup will remain the same as in April – 20%. In this case, the gross profit will be 26 rubles.

This example clearly shows If the company wants to get the same profit 

the impact of trade markup on pricing. As an effective tool for price formation, added value allows for a comparative analysis of various product positions and periods of activity. With its help, you can obtain objective information about the work of competing companies and promptly change the prices of your goods.

Regulation of markups

As mentioned above, the amount of added value in most cases has no limits. However, there are categories of goods for which the state regulates prices. These include:

The markup for these groups of goods is set by local authorities. For some medicines, prices are strictly fixed at the state level.

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For goods that are not included in the above list, if the state does not regulate their cost in any way, the manufacturer has the right to set any trade markup. There are certain categories of products for which it is impossible to set a maximum cost limit (jewelry and custom-made products, designer items and shoes, any goods produced in limited  If the company wants to get the same profit quantities, etc.). For exclusive products released in a single copy, the markup can reach 1000% or more. Note that such goods are not very common.

The maximum markup on most types

of products is actually formed by the market for similar goods. It is very difficult to sell non-competitive items. As the level of demand for a certain product increases, its manufacturer gets more opportunities to independently form the price.

If you wash the potatoes and make them look more attractive, you can increase the selling price by 250%. You can also sort the potatoes and pack them in 2 kg bags with handles, increasing the markup by another 100%. The profit will increase even more if you make semi-finished products. For example, the price of frozen French fries can reach 150 rubles/kg. In this case, the markup in relation to the original price of the root vegetable will be 400%.

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Example . On average, a 600-gram loaf of Uralsky bread costs 30 rubles in the Ural region. With a cost price of 17 rubles, the markup on this product is 76%. In cities where business activity is higher, sliced ​​bread in appropriate packaging is more often purchased. The cost price for such goods increases by 10% on average. In this case, the markup already reaches 87%.

For rural consumers, the retail

price is an important criterion, so they buy more unsliced ​​bread. The manufacturer can add bran to bakery products or use flour obtained by mixing  malaysia numbers list  several grains (for example, corn flour). In this case, the cost of bread will increase insignificantly, but the trade markup will increase to 150-200%. Popular whole grain bakery products are sold with an increased markup of another 20-50%.

Even higher trade margins are for

sweet buns, cottage cheese muffins, baked goods with nuts, raisins and other fillings. For such products, it reaches 250-450%. When setting retail prices, bakery producers aim to maximize profits. However, they cannot raise ket.

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