Almost all businessmen ask questions about business, which are conventionally divided into several categories. The first category of questions are questions that are related to a particular type of business and its specifics. The answers to these questions are suitable mainly for a narrow category of businessmen of a certain niche. The second category of questions about business are those questions, the answers to which are suitable for all categories of entrepreneurs.



Today in this article we will touch upon such an important issue for everyone as the formation of the price of a product, and what affects the final cost of your product. And to put it more simply, how can we correctly make a markup in order not to miscalculate? And find her golden mean from which both sides benefit.

What is markup?

At first glance, there is nothing difficult in determining the margin. And even the most novice entrepreneur can easily explain this. But as practice shows, everything is not so simple. This question was asked to dozens of entrepreneurs different levels, and only 20 percent gave an intelligible explanation of the term. So let's try to explain it ourselves.

A markup is the amount by which the cost of a product is increased from its original cost. That is, if we have a kilogram of potatoes in the purchase cost 20 rubles, and we sell it for 25 rubles, then the markup is 5 rubles. At first glance, there is nothing complicated, but when determining this value, many entrepreneurs have many questions that we will try to answer.

What should be taken into account when determining this margin?

The main goal of any business and entrepreneur is actually getting the maximum profit from their business, and it is necessary to put the “correct” margin on the goods. What does this term imply? With a correct and adequate margin, you fully pay off your costs for the purchase and manufacture of goods, and earn a good amount of money on this. But at the same time, the final cost of the goods for the consumer remains very attractive. This can be considered the "correct" margin.

In order to put the correct margin on your product, you first need to calculate all the costs that you incurred during the production or purchase of the product. With own production, the cost of the goods includes items such as expendable materials, wages for workers, delivery of components and rental of warehouses, and so on. If you do not produce goods, but only sell, then take into account the initial cost of the goods plus transportation costs, do not forget about the salaries of employees, utility costs. To correctly determine the costs, you must not miss a single point.

Therefore, in order to correctly make an extra charge, we first need to calculate our costs, and start from them in determining the final cost. But this is all superficial, and in more detail we will consider the methods of margining on goods further.

If you take specifically for various products, then you should look at the popularity of the product. If the product is common, such as bread and potatoes, then it makes no sense to put a large margin on it, since they simply will not buy it from you. Just in a nearby store, this product will cost less. The more common the product, the lower the markup on it. Conversely, if the product is not yet on the market, then you can make a higher margin. Too high a price for your product will simply scare off most buyers.

The lowest margin is placed on goods of well-known brands, and which are presented on the market in a wide range. But trademarks that no one knows can be increased in the final cost at first. Although over time, the price of such a product stabilizes in the market. And most likely you yourself will be forced to reduce the price to the real market value. When forming a margin, an important point is to track your direct competitors. And here, try not to set the price much higher than their prices. But if the product sells well and there are even prospects for an increase in demand, then you can even raise the cost a little, even if it is higher than the cost of competitors.

When carrying out various promotions and discounts, you must initially lay their cost in the margin. For regular customers, this will be a great gift, and in this way you will not only not lose part of your profit, but also increase it. Do not forget to include taxes paid to the state in the final price formation process. This can be quite a significant amount, and therefore should not be neglected.

When forming a margin on your product, use these tips, and choose the “correct” margin. Also remember that market prices are constantly changing. different sides, and therefore this process must be kept under control in order to instantly respond to market changes. Good luck in business and good profits!

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25.03.2014 177944

Some businessmen still confuse the concept of margin with the concept of a trade margin and set prices for their goods, guided solely by the example of competitors. No wonder they go broke! Maxim Gorshkov, an analyst at the Academy of Retail Technologies, gives some tips and formulas with which you can set not only not ruinous, but also profitable prices.

Commercial analyst at the Academy of Retail Technologies. He has 14 years of experience in the fashion industry, including as director-curator of the Sportgrad retail chain and Sportcourt high-end sports stores, as well as director of the Nike retail chain. Specializes in commercial and financial analytics of enterprises retail.
www.art-rb.ru

Markup and margin - "two big differences"

In a business environment, you can sometimes hear a phrase like “This company operates with a margin of 200%”, which is actually incorrect, since in this case we are not talking about a margin, but about a markup. Unfortunately, these two concepts are often confused. Let's dot the "and" and figure out what margin, markup and markup ratio are.

When purchasing goods from a supplier, we pay a certain amount of money for it. For example, 1000 rubles for a pair. This is the purchase price. When the product arrives at the store, we impose an additional cost on it so that the buyer pays 3,000 rubles for a pair, which is the retail price of the product. There is also such a thing as the actual price - the price at which the product was actually sold as a result of promotions or loyalty card discounts. Having decided on the types of prices, we can understand what margin is. Margin- this is the share of added value in the retail price of the goods, that is, the difference between the retail and purchase price. It shows how much profit the company will receive if we sell the product at a given retail price. In our example, the margin, that is, the share of added value, is 2,000 rubles, or 66.6%. But no matter what examples we give, the margin will always be lower than the retail price. So if you hear someone talking about margins in excess of 100%, be aware that that person is confusing margin with trading margin. Trade margin- this is a certain premium on the purchase price of the goods, that is, by how many percent the retail price exceeds the purchase price. In our example, the trade margin is 200%. Relatively recently, the retail trade began to use the indicator markup coefficient. It, like the trade margin, demonstrates the ratio of the retail price to the purchase price, but is expressed not in relative (percentage), but in absolute terms, and is used only for simple calculations. The markup coefficient in our example is 3: that is how many times the retail price is higher than the purchase price.

The question arises: which indicator should be used in the work? From the point of view of financial accounting and budgeting, the margin indicator is the most important, since many other calculations are associated with it. But for simple operations, you can use all other indicators.

How to set prices that will bring profit

It is possible to cover all costs and ensure the profit for which any normal business functions, with the help of a well-calculated trade margin. Our goal is to use it to establish a retail price that will cover all fixed and variable costs, and will be as large as possible with the solvency of your buyers. Do not be shy to sell expensive: if a product is bought even at a very high price, then it is worth it. Also, there is no need to rush to the other extreme, selling goods at cost or even below it - but this happens! remember, that low prices not only don't build customer loyalty, but they're slowly but surely ruining you - especially if you can't really afford these price games. To set the right prices for your store, first ask yourself a few questions.

What is the cost of the goods? Calculate what costs you incur when receiving goods in your store. They always include the purchase price, and for non-franchised stores, most often the cost of delivery. For companies that themselves produce and then sell the range, the cost of goods includes the cost of raw materials, labor force, designer labor and other costs.

What is the threshold price level? The threshold price is the minimum price of a product that allows the firm to break even. It includes all costs that must be paid even if you make a discount on the product. Some sellers, inspired by the example of competitors-networkers, reduce prices in an effort to please the buyer. But often they do not take into account the fact that networkers can really afford such games with the price, because they sometimes get the goods at times cheaper than a private entrepreneur. As a result, the store owner, without calculating his threshold price, enters into a price race with a large retailer and works at a loss. He can do this until he is completely broke or out of the race. Raising the price back, the seller, most likely, will lose customers - after all, they went to him only because of the low price - and will again be on the verge of ruin.

What is the price situation in the industry? Of course, you need to understand what prices your competitors are working on and what prices consumers are willing to pay for your products.

Is the demand for your products elastic? Demand is considered elastic if it changes with a decrease or increase in price. Only in this case it makes sense to make a discount on the product, otherwise it will not work. If demand is inelastic, that is, sales do not increase with a decrease in price or increase only slightly, it will not work to make a profit on the sale of such a product. Since there are categories of goods in a shoe store with different elasticity of demand, you must measure and calculate the elasticity of each of them using the formula E \u003d K / C, where K is the percentage change in demand, and P is the percentage change in price.

Will additional services affect the increase in sales? One of the most attractive services for the buyer now is a consumer loan for shoes. So far, only a few companies sell shoes in this way, which is strange, because the seller does not incur any costs, but only enjoys increased sales.

What price is the buyer willing to pay for the product? This indicator depends on many factors, for example, on the location of the store and the income of the target audience. When we know the exact portrait of the buyer, we understand well what exactly he needs and how much money he is willing to spend on shoes per month. For example, after all the expenses, the client of our store has about 6 thousand rubles a month left, which means that we can set about the same price for most models in the store. But this is the average price, so we have to add two more steps to it: 25% down and 25% up from the price. It is not reasonable to make a price step of more than 25% in one store, since such a price range will dilute your target audience and force you to compete with more expensive or cheaper stores, which is absolutely not interesting for you or your customers.

What is the nature of the competition? Competition is like radiation: it is always and everywhere, but it is not visible. But you still have to keep your finger on the pulse of your competitors and work better than them. The one who monitors his rivals opens 200-300 stores a year, and the one who sells goods at cost and does not learn anything from others works all his life with one store.

Once you have figured out your options and desires in terms of pricing, use one of several pricing methods.

Method one: average cost + profit. It's pretty simple and effective method pricing that is cost-based - and this is very important - although it does not take into account changes in the market and does not show how much you can reduce prices during a sale. The essence of the method is to get the price of the goods from the sum of all costs for the reporting period and the desired profit share. For example, we purchased goods in the season for 5 million rubles, and found out that the total costs for the same period would be approximately 8 million rubles. If we mark up the goods by 100%, then our profit will be only (5x2) -8 = 2 million rubles, and if we make a markup of 150%, then inventory in monetary terms will equal 12.5 million rubles, which will bring us, in the ideal case, already 4.5 million rubles. It is clear that there are no “ideal” cases: the season always ends with a balance, and the market dictates its conditions to us. Some of the assortment will be sold at a discount, so in this situation, a markup of 150% will allow us to at least stay afloat.

Method two: price calculation based on break-even analysis. In business, there is such a thing as a break-even point. The essence of the break-even principle is to establish the volume of sales at which there will be no losses. The break-even point is always calculated for new businesses, as with its help it becomes clear how long the store will operate without profit, only to cover the initial investment. Some elements of break-even analysis can also be used for pricing, and this method will help us figure out what the minimum profit required for the business to survive (something that the average cost + profit method cannot give). To determine the minimum profit rate, it is necessary to subtract variable costs from the volume of the planned gross revenue, and divide the resulting number by the volume of the planned gross revenue. For example, (15M - 5M)/15M = 0.5. This coefficient indicates that the difference between the purchase and sale prices should be 50%, otherwise we will work at a loss. Using this method, you can also calculate the trade margin. To do this, use the formula "1-(planned gross revenue / variable costs) * 100%". In our example, this calculation may turn out: 1-(15 million / 5 million) * 100% \u003d 200%. This is exactly what the trade margin should be, so that we at least cover all costs without earning anything. The upper price limit dictates only common sense: we should sell as high as possible, while not listening to those who advise selling the goods cheaper. As a rule, such advisers are people of low social status who understand little about making money.

In principle, these methods are enough to set prices that are adequate for your business. But in some cases prices are set in other ways. In particular, "method of current prices", when competitors' prices are taken as a guideline: this method has not yet taken root in the fashion segment, but electronics retailers are already using it. Its advantage is that it vetoes price wars, but not all stores can afford to maintain the same prices with large chains. "Method of dumping prices" used to attract buyers. Its essence is to set low prices for bestsellers, that is, for especially attractive products, although the prices for all other products may even be inflated. This method can provoke price wars and create an image of a cheap establishment for the store, so it should be used with caution. "Method of measuring the elasticity of demand" is good because it can be used to track the dependence of sales and profit growth on price changes, and the method "purchasing behavior analysis" used at the stage of launching a new product on the market.

Some businessmen still confuse the concept of margin with the concept of a trade margin and set prices for their goods, guided solely by the example of competitors. No wonder they...

Most entrepreneurs today need to correctly and quickly calculate the markup on goods.

First, the markup is calculated in order to correctly evaluate the goods before selling, that is, to conduct a kind of pricing of the goods.

Another reason for calculating markup A businessman needs to know at what prices his competitors buy goods.

In the article, you will learn exactly how the price of a product is formed at points of sale, as well as how to calculate the markup on a product.

What is markup?

Product markup – is a premium on the cost of a product or service. Also, the margin of the goods can be called the income from the sale and the cost of selling this product.

The markup of a product depends on the product itself, namely its quality, popularity, and consumer properties.

The markup is made to cover the costs of sold and manufactured products, as well as for their storage and transportation.

For entrepreneurs, the main thing is to make a profit from the product.

When setting the full price for the goods, the competitiveness of the goods on the market is taken into account. Find out the competitiveness of the brand that produces this product.

It is important to know, What is the competitor's sales strategy?.

The following sales strategies are used:

• Sell ​​goods at a low price, but in large volumes;
• Sell ​​goods at a high price, but in small quantities.

The margin on the goods shows how much profit was brought by the costs of buying the goods and selling them.

When the markup on the goods is correctly framed, sales will proceed at a rapid pace, a income will fully cover the cost of buying and storing goods. Hence, profit depends on markup.

How to calculate markup?

Let's figure out how we will mark up the goods that were sold during the report period.

This the indicator should cover all costs, and also allows you to receive income, for example, proceeds from the sale of goods.

A businessman who already knows how much markup on his goods can safely take the next steps in business development.

The margin indicator is defined as the difference between the proceeds and the purchase price of the goods.

Calculations are made according to the following characteristics:

• Trade turnover;
• product range in trade;
• markup percentage.

Product markup formulas

1. TN \u003d T * RTP / 100

T- turnover

RTN– estimated markup (%)

TN- markup on goods

PTH = TH% / (100 + TH) * 100

This method for calculating the margin is perfect for an enterprise in which the percentage for the price of the entire volume of goods is set the same.

1. ТН = (Т1* РТН1 + Т2* РТН2 +… + Тn*РТНn) / 100

T1, T2,…, Tn- turnover for different product groups

PTH1, PTH2,.. PTHn— coefficient of margins that correspond to these groups

PTHn = TH%n/ (100 + TH%n) * 100

VT%1, VT%2,…VT%n– allowances for each group of goods

Example of calculating the trade margin

The turnover of the enterprise for the quarter is 20,481,000 rubles. The established markup percentage was 22%.

Finding the markup amount:

where T - t / turnover,

RTN-% of the estimated markup.

PTH \u003d TH% / (100 + TH) * 100,

where TN%- % of the allowance accepted in the company.

PTH \u003d 22 / (100 + 22) * 100 \u003d 18%

TN \u003d 20,481,000 * 18/100 \u003d 3,686,580 rubles.

What determines the markup?

Mark-ups are present both in wholesale trade and in retail.

The main purpose - cover all costs and make a profit.

Trade margins depend on the following factors:

• Purchase related expenses, storage and sale of goods;
• From the amount of VAT;
• Arrived from implementation.

Entrepreneurs at their discretion introduce the following margin factors:

• Establish a single markup percentage rate for all goods or services sold by the company.
• Set any monetary unit for a more convenient sale(if the product is imported from other countries).
• Establish a value for the business goods for sale.
• Use other methods product markups.

The most optimal option for setting a markup on a product is to set a price that is considered average in the market.

In most cases, in order not to be left without a profit and protect themselves from losses, the company adds a percentage of tax to the margin of the goods.

Discounts and bonuses for regular customers are also used.

How to determine the actual markup percentage for sales analysis?

To determine the actual percentage for sales analysis, do the following:

• Determine what value will be present when characterizing the units of the population. To do this, use the following formula:

Xap=Oz/Oc. Oz - The total volume of the markup value, Oc is the volume of the population.

• You should select indicators of the amount of change in the attribute for the period of analysis.

1. For such an analysis add up the amount of debt that was overdue by the end of the year.
2. Calculate the average debt. To do this, substitute the values ​​\u200b\u200binto the formula and multiply it by 100%

Some entrepreneurs still do not understand the difference between the markup on a product and the margin, and therefore fix the cost of their products, focusing on the actions of competitors. There is nothing surprising in the fact that after such experiments, businessmen not only cannot earn money, but even become bankrupt. However, the economy has developed a number of formulas that will not make prices ruinous, but will only bring profit.

In turn, analysts give several important recommendations, from which the final price of the goods in retail trade for the consumer is formed.

Difference between markup and margin

When you hear from the outside that a company works with a margin of 250%, you should understand that this is incorrect, moreover, the margin itself is not permissible. It's more about pricing. In order for the entrepreneur to avoid confusion in these 2 concepts, we suggest understanding the differences using real examples.

Suppose we purchased a product from a supplier for which we paid the specified amount of money, let it be 1,000 rubles. When shipping products to a retail outlet, a businessman artificially adds additional volume money supply and receives the retail price.

It is also useful for the entrepreneur to know that there is a term of the actual price, that is, when products are sold in accordance with incentive promotions in holidays or gift certificates.

Now a few words about the margin. Margin is a part of the additional money supply, which consists in the retail price of the goods, that is, in reality, it is the difference between retail and purchase prices. By its size, it is easy to understand what net profit to expect if the goods go to the buyer at the cost set by the businessman.

The most important difference between a margin and a trade margin is that the first cannot be higher than the purchase price for products, that is, it does not exceed 100%, so the margin turns into a margin by default.

In 2018, retail trade has a mark-up coefficient that allows you to reflect the ratio of retail cost to the purchase price, but it is not determined as a percentage, but in absolute terms, used exclusively for simple calculations. In our example, the coefficient is equal to 2.5.

What should be the trade markup

When an entrepreneur determines what the retail markup will be. There are many costs that must be considered, from the period of purchase of products to the setting of the selling price. The trade margin should make the business profitable, but at the same time be lifting for solvent citizens.

newcomers to entrepreneurial activity are often afraid to set an expensive price for a product. Of course, it is foolish to fix a large price on an ordinary product that a competitor neighbor has. But if your products are an order of magnitude higher quality, more exclusive and, finally, more useful, only a high selling price will indicate special characteristics. Loyalty to the buyer should be selective and in no case will ruin your business.

So, calculate how much money was spent on:

Now add VAT to the value obtained, if the taxation system chosen in 2018 implies its payment. Before cooperating with a wholesaler, immediately ask what taxation format he has, otherwise joint work may turn out to be unprofitable.

An integral part of the trade margin for goods in 2018 is the estimated amount of profit. In order to estimate the real proceeds from the sale of the product, you need to study the supply and demand market, pay attention to marketing, and also rely on the businessman's own intuition.

The final retail price is influenced by the following factors:

Therefore, do not rush to open a business, pay due attention to planning and developing a business plan. It is better to include more expenses than income in a business project, so that you do not end up with an empty wallet afterwards.

The law also strictly spells out a list of products fixed at the state level, the amount of the margin for which cannot exceed the established values. Mostly baby food medical preparations products, food for schoolchildren and students in educational institutions, products imported for sale in the Far North.

It is difficult to predict how the trade will go. Experts suggest 2 unexpected outcomes of events:

How is the retail markup calculated in 2018?

In retail trade, the markup on a product is determined as:

If a businessman wants products from different manufacturers and suppliers to be sold evenly, and the goods are not stale, it is advisable to set a single retail price, in which case the markup on the goods will be completely different.

The trade allowance may change in the process of selling products in accordance with the characteristics of the turnover. The task of the trade margin is to bring the business into a plus, minimizing costs and increasing income. Suppose sales show good results, revenue is constantly growing, then for some time the seller can afford to carry out a discount, stimulating action, as a result of which the selling price will decrease due to a reduction in the amount of the allowance.

But it is also wrong economically to carry out an action to the detriment of oneself. Take advantage of tax breaks or save on electricity.

Methods for calculating the trade margin

In 2018, you can calculate the trade margin using one of the following methods:

1. Focusing on the total amount of revenue from the sale of goods. It is applied if the same markup percentage is fixed on all sold goods.

Trade margin = planned markup percentage / (100+N)

2. Taking into account the range involved in the turnover. If the enterprise offers the population goods with different trade margins, but takes into account and controls the amount of revenue for product groups with the same margin.

Revenue = revenue of item 1 × estimated markup of item 1 + revenue of item 2 × estimated markup of item 2 + … + revenue of item n × estimated markup of item n

Revenue \u003d opening balance, which is recorded on account 42 + credit turnover on account 42 - debit turnover on account 42 - balance determined at the end of the reporting period

Markup percentage = (markup at the beginning of sales + markup on receipt - markup at the time of disposal of the goods) / (revenue of goods sold at selling price + the rest of the products) × 100%.

Gross income = revenue × calculated percentage / 100.

Products with the highest markup

We have already found out for which products there are limited, acceptable margins. How many percent to fix on other types of products, it is up to the entrepreneur to decide, in this case the state provides complete freedom.

For convenience, analysts have identified a list of high-margin products that are always in demand and sell quickly:

The trade law will fix the margin

Within ten days, the trade law on behalf of the prime minister Vladimir Putin will be finalized on the basis of the version of the Ministry of Industry and Trade. This decision was announced at a government meeting. The bill decided to leave the provision on “ standard contracts» on the supply of food and fix the limit on the trade margin. The law on trade was developed by the Ministry of Economic Development for two years and in April last year was sent for approval to the relevant departments. The government meeting, which began in one of Moscow's supermarkets, dispelled the last doubts.

A kind of culmination of the battle of giants, suppliers and sellers, was a meeting with the Prime Minister, devoted to the discussion of the law on trade. The results of Vladimir Putin's visit to one of the capital's chain stores. It turned out that the average markup for dairy products there was 10 rubles, for meat - 120!

“Of course, we can be glad that we have big choice goods. There are still many people in the country who see a colossal advantage compared to what it was 15 years ago, when we had empty shelves. But it is difficult to imagine a situation where in a country with a developed social and market system there is a trade margin on goods of more than 70 percent. It's overkill!" Putin said.

Where do these figures come from, and sellers and suppliers answer the same way: this is a business. However, everyone has their own motives. The mark-up on a particular product, no matter how high it may seem, is the only way to earn money for the development of the network, says Ilya Belonovsky, executive director of the Association of Retail Companies.

“Each network has its own mini-factory. They have their own logistics, 70 thousand people work, their own fleet of cars, great amount shops, rentals and so on. The network must have marginal income to cover costs, so that this margin gives the network the opportunity to develop. The networks' profit last year amounted to 1 to 3.5 percent. Someone closed the year in the red,” Belonovsky said.

In addition, a 70% mark-up is not set for all goods, but only for certain types, more often premium. By increasing the margin, for example, for one type of sausage, you can reduce the price of another, adds Ilya Belonovsky.

“Sausage, which is taken every day, always has a lower markup. An expensive product has more. And the average markup in the networks will be 20-23%, 25% is the maximum,” Belonovsky said.

Suppliers are not happy with high markups that reduce consumer interest, especially since this is not the only factor affecting the final price of goods from retailers. There are also so-called bonuses, says Natalya Ermakova, a member of the State Duma Committee on Economic Policy and Entrepreneurship.

“Agricultural producers complain about retail chains, and retail chains complain about agricultural producers. Either the products are of poor quality, or they do not fulfill the contractual conditions. And the agricultural producer just says that their large retail chains are choking - they pay for entrance, for a shelf, but they don’t pay for air, ”said Yermakova.

If you want to sell, pay. Such an unspoken law has been working between product manufacturers and the management of retail chains since the 90s. Suppliers, in general, do not mind paying a “fee” for entry, favorable placement of their goods on shelves or additional marketing services from the network, but everything should be within reasonable limits, David Yakobashvili, chairman of the board of directors of Wimm-Bill-Dann, is sure.

“There are some things that are quite objective. You can pay a bonus for this. What happened two years ago? There were 27 positions that were imposed by trading networks. Suppose the supplier must provide the network with a profit no less than such and such a size. If she does not receive a profit in connection with some of her own violations or something else, then everything is covered by the supplier. It was 27 positions where we rested on both sides. Unfortunately, we did not agree,” Yakobashvili stressed.

And not only the absurdity of some requirements of networkers does not suit entrepreneurs. According to Mushegh Mamikonyan, president of the Meat Union, director of the Lianozovsky sausage factory, six-digit figures are too expensive even for large producers.

“With a turnover of about 100 million in 2008, I paid about 27 million dollars in the form of bonus programs and marketing events. These are unjustified expenses, - Mamikonyan is sure. In order for the company to reach its buyer, to pay more such funds to commodity conductors!”

The sellers, on the other hand, claim that they did not come up with bonuses, and are quite ready to abandon this system if manufacturers reduce the purchase cost of the goods in proportion to the amount of the contribution. It turns out vicious circle, out of which the law on trade should become. It was developed by the Ministry of Economic Development for two years. Five versions of the project were prepared. Now the authors of the law have 10 days left to submit the last and final version of the document to the Duma.

How to price a product correctly

Any seller, in order to make a profit, strives to sell his goods at the highest price. The difference between the purchase price of a product and its sale price is the trade margin. This margin cannot be equal to zero, since the seller bears the costs of transport, staff, retail space, and so on. Selling at the purchase price without a premium is unprofitable for the seller.

The value of the margin on products depends on many factors. These are the presence and severity of competition, the quality of the product, the “hype” of the brand, the purchasing power of the population, as well as the restrictive measures that the state imposes on certain types (groups) of socially significant goods. The combination of these factors does not allow an unequivocal answer to the question of what markup should be in retail.

Today in Russia, the maximum margin for goods is not set by law for most goods. This means that, for example, if you are the owner of a unique product, then by buying it, conditionally, for 1,000 rubles, you can set the price of 1,000,000 rubles. After all, only you own this product. But there is a limitation here too. This restriction is imposed on the seller by the market. And who will buy a gadget or clothes for such a price? Is the consumer value of this product so high?

The ability to set the optimal price for a product, that is, an understanding of how to correctly mark up a product, is determined by the knowledge or, if you like, the talent of the seller. If the price of your product from competitors is within certain limits, then a significant increase in price will not bring you profit, as sales will decrease, and understating the “cheat” may not increase turnover and the seller will incur losses.

Trade margin calculation

The amount of the seller's profit depends on both the trade margin and the volume of sales.

A very high premium on the purchase price can significantly reduce sales, and an unreasonable decrease in it underestimates the overall profit. First, let's look at the factors that affect the value of the trade margin. This is, first of all:

The minimum markup on goods for tax can be calculated based on the break-even point. This can be done in a simple way.

For example, an entrepreneur purchased a batch of homogeneous products for 100,000 rubles and intends to sell it in one month. At the same time, his expenses for renting the premises amount to 5,000 rubles, the staff salary is 25,000 rubles, and other expenses (accounting, cleaning, transport amount to 10,000 rubles. Then the minimum markup will be:

Markup = (5000+25000+10000)*100/100000 = 40%

A smaller mark-up on the purchase price brings losses, and a larger mark-up brings profit. However, if the turnover is growing and the entrepreneur can sell the batch in half a month, then the minimum markup will be:

Markup = (2500+12500+5000)*100/100000 = 20%

This simple example shows that with a 30% markup, you can get both a loss of 10,000 rubles per month and a profit of 20,000 rubles per month. That is, you can get 20,000 rubles of profit both by increasing the margin to 60%, and by doubling the turnover.

However, it should be remembered that price reduction does not always lead to an increase in turnover. For branded seasonal goods, the margin in the first "hot" months (weeks) of sales can reach 400-500% or even more. Therefore, out of season, sellers set discounts up to 70% and still make a profit.

Do all items need to be priced the same?

If an entrepreneur sells a limited range of products, then he sets individual margins for each item and can respond flexibly to fluctuations in demand. Such an approach is difficult with a wide assortment at the point of sale, even purely technically (it is difficult to frequently change price tags on hundreds of samples displayed on the shelves), although modern “smart” computer programs can analyze the sales process and give advice to the seller.

Typically, entrepreneurs break their products into product groups. For example, meat products, dairy, groceries, confectionery and so on. What percentage of the markup on goods in retail trade should be set according to different groups goods can be evaluated by analyzing the prices of competitors.

Sometimes, within one product group, entrepreneurs differentiate the margin depending on the level of the purchase price of the batch. That is, cheap products are charged a higher markup than expensive ones. This approach can stimulate increased sales of expensive products and increase gross margins.

What markup can be made on a product according to the law

As we noted above, there are no restrictions on the size of the trade markup for most products, services and product groups in Russia. It is determined by the business entities themselves, taking into account the realities of the market situation. But there are specific socially significant product groups for which the state sets the maximum size of trade allowances. These include:

Surcharges for medical devices and pharmaceuticals, as well as their list, are regulated by the Russian Government. For other services and products, surcharges are set by regional authorities.

It should also be borne in mind that a mark-up of more than 30% is not allowed on essential essential food products. These are bakery products, groceries, meat, dairy products and other goods, the prices of which form the cost of the consumer basket.

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Trade Law // Draft New Changes: Analysis of Key Issues

Under consideration in State Duma The Russian Federation is the Draft Law No. 206370-1 “On Amending the Federal Law of December 28, 2009 No. 381-FZ “On the Basics of State Regulation of Trading Activities in the Russian Federation” (hereinafter referred to as the Law on Trade).

At the moment, consideration of the Draft Law has just begun. More details on the status of consideration of the Draft Law can be tracked at the link: http://asozd2.duma.gov.ru/main.nsf/(Spravka)?OpenAgent&RN=206370-7

So, the main changes that the deputies of the State Duma of the Russian Federation propose to make to the Law on Trade:

The conceptual apparatus established in Article 2 of the Trade Law is supplemented by two new concepts:

1. The concept is introduced food products are goods that are food products in natural or processed form, intended for human consumption, bottled drinking water, alcoholic products (including beer), soft drinks, as well as dietary supplements, chewing gum.

Nota bene: the current provision of paragraph 9 of Article 2 of the Law on Trade already contains a definition of food products, namely, products in natural or processed form, which are in circulation and consumed by humans (including baby food, products diet food), bottled drinking water, alcoholic products, beer and beer-based drinks, soft drinks, chewing gum, nutritional supplements and biologically active additives.

The deputies, apparently, wanted to amend the current definition of food products contained in paragraph 9 of Article 2 of the Law on Trade. It is obvious that 2 times to introduce the same concept (with some differences) does not make practical sense.

However, if this is the case, then the following will disappear from the current definition of food products: beer-based drinks, nutritional supplements, baby food, diet food. In addition, the mention that these are products in circulation will disappear. Chewing gum will fall under the scope of regulation.

2. The concept is introduced essential food items are goods that satisfy the vital needs of the body in required quantity nutrients (bread, bakery products, pasta, dairy products, meat and sausage products, fish and fish products, sunflower oil, sugar, vegetables, fruits, baby food and diet food).

Nota bene: As you can see, baby and dietary food products from food products have been transferred to essential food products.

By virtue of paragraph 6 of Article 8 of the Law on Trade, the list of socially significant goods is established by the Government of the Russian Federation (hereinafter referred to as the List). At the moment, this List is approved by Decree of the Government of the Russian Federation of July 15, 2010 No. 530.

At the same time, in the List, goods are divided into 2 categories:

— Socially significant essential goods, for which maximum allowable retail prices may be set;

— Socially significant essential goods, for the purchase of which the payment of remuneration (the amount of which is determined by paragraph 4 of Article 9 of the Law on Trade) is not allowed.

What happens?

First of all, part of the essential food products (in the wording proposed by the deputies) falls under the scope of the List (for example, according to the List, bread made from rye and wheat flour, apples, carrots, noodles, potatoes, white cabbage, onions, granulated sugar, milk drinking, etc.). This is due to the fact that goods defined as essential food products are indicated too generally (for example, vegetables, fruits), while the List indicates a specific type of vegetable (onion, for example).

If vermicelli (see the List) is a product for which a maximum permissible retail price has been established, being at the same time pasta(essential food products), does this mean that:

Based on the logic of the Draft Law, this is exactly what will happen. That is, in relation to the same product, there can be 2 methods of regulation - the establishment of a trade margin and an acceptable retail price.

Secondly, the conceptual apparatus of the goods indicated by the deputies as essential food products differs from the conceptual apparatus of the List, which may lead to some confusion in law enforcement by entities engaged in trading activities and retail chains.

3. The concept of a trade margin is introduced as a markup on the cost price or on the wholesale and retail price of goods necessary to cover costs and receive average profit manufacturer or trader.

4. The Law on Trade is supplemented by Article 6.1 State regulation of food prices.

Thus, the Government of the Russian Federation establishes:

Nota bene: Of greatest interest is an open list of agricultural products, in respect of which a trade margin can be set (the deputies did not make proposals on this list), as well as the establishment of a limit on the size of imported agricultural products in the range of goods sold.

As we know, some of the imported agricultural products are prohibited for import and sale in the Russian Federation on the basis of Presidential Decrees No. 560 dated August 6, 2014, No. 320 dated June 24, 2015, and No. 305 dated June 29, 2016.

Based on their proposals from the deputies, it turns out that the percentage of agricultural goods allowed for sale will also be limited. It is impossible not to wonder how the seller of these goods should determine the volume of purchases of these goods, how the period during which the restriction is valid and when the new period will begin to flow, and many others will be determined.

It turns out that in terms of imported agricultural products, in addition to sanctions, additional restrictions on sales are established in the form of a maximum share in the range of goods.

Organs state power subjects of the Russian Federation establish:

• The list of certain types of food products, including essential goods, for which maximum trade margins are set. At the same time, this List can only be expanded in comparison with the List established by the Government of the Russian Federation;
• The level of limit values ​​of trade margins, which cannot exceed those established by the Government of the Russian Federation.

Note bene: The authorities of the constituent entities of the Russian Federation want to give broad powers to determine the goods for which trade margins will be set. As we can see from the definition, the list determined by the Government of the Russian Federation (we repeat, there are no proposals yet) can be significantly expanded by the authorities of the constituent entities of the Russian Federation.

Which will eventually lead to the fact that trade margins in different regions of the Russian Federation can be applied to different goods, which ultimately, among other factors, will affect pricing.

Conclusion: The bill needs to be finalized, clarified the conceptual apparatus, and eliminate the existing contradictions with the current version of the Law on Trade. The bill raises more questions than it answers them.

The status of the Draft Law will be updated as it is considered by the State Duma of the Russian Federation.