In addition, when calculating the RRP, the purchase price and the markup in the retail trade network are taken into account. The amount is made up of indicators that characterize a specific product. It is clear that a separate calculation must be made for each product.
How to calculate the RRP in trade:
Sum up the costs of producing the product: this area code philippines mobile will include the cost of raw materials, employee salaries, transportation, marketing, advertising and other costs.
Determine the margin, that is, the amount of expected profit that accrues from selling the product.
Analyze the price level for similar goods on the market. Calculate the cost of your goods, which will allow you to take a worthy place in this niche.
Calculate the final optimal RRP, which will be based on real cost indicators and will take into account both your and the buyer's interests.
In conditions of market fluctuations that can change any calculations and plans, the RRP is not a dogma, but a guide to action. A number of reasons may cause the need to adjust the retail price.
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Alexander Kuleshov
Alexander Kuleshov
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Factors Affecting Cost
Let us name the main criteria that influence the change in the cost of goods in the retail network:
increase/decrease in production costs;
increase in tariffs, increase in taxes;
changes in the market situation.
There are proven methods that are used to recalculate the RRP when objective circumstances require it.
Method Characteristic
Analysis of the competitive environment The manufacturer collects and analyzes information about the pricing policies of competitors and changes the RRP in time to maintain the desired profit level.
Analysis of production costs The supplier controls the cost of production of products and has the ability to change the RRP when different types of costs change.
Consumer Demand Analysis The manufacturer uses marketing to study fluctuations in demand for its product, and in connection with its growth/fall has the opportunity to change the RRP in order to maintain the level of income.
Analysis of the economic situation The supplier must be aware of the economic situation in the region, the country and the world. It changes the RRP, which makes it possible to minimize losses due to inflation, changes in exchange rates and other circumstances.
When the market situation changes, it affects the interests of all participants in the process, not just the manufacturer. Full-time marketers give recommendations on changing the RRP, and the enterprise discusses this issue with all partners. If the conditions require it, and the retail chain is unable to make adjustments, the manufacturer thinks about revising the terms of the contract, it will look for another commercial organization to sell the product.