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Price calculation - calculate the best selling price
Katharina Rösner
If you start your own business as a retailer with an idea, you must Sales prices Define. In this article, you'll find out everything you need to consider.
Price calculation becomes important when you have a Founding companies, want to sell a new product, or check your current sales prices. For this, you need a business plan that includes a financial plan. In this, you also explain future costs and sales. In doing so, you also receive Product prices One. Price calculation Means setting prices for your products. You're taking your into account Self-costs, the Profit surcharge And the pricing strategyThat you want to use.
It is important that the price is yours Self-costs Covers. These include direct material costs, material overhead costs, distribution costs, manufacturing costs and administrative costs.
Material costs Consist of Direct material costs and Material overheads. Die Manufacturing costs Consist of Manufacturing wages, Manufacturing overheads and Development costs. There are also Administrative overheads and Sales overheads. This then results in the Self-costs. The cost plus Profit surcharge Result in the price of your product. You add individual costs directly to the price, Overheads Do you calculate in Shares On top of that.
For example, you sell dairy products Like ice cream. In return, you have the ingredients as individual material costs, such as milk, cream, chocolate and sugar. You also need pots and an ice cream maker, which will incur material overheads. Cookers, ice makers and refrigerators generate energy costs, which are part of the manufacturing overhead costs. In addition, you make the ice cream and may still have employees, so you also have to include manufacturing wages. The managing director's salary falls under administrative overhead costs. These include the costs of a tax advisor. Delivery or shipping will incur additional sales costs. The price of the ice cream must cover these costs. You then add a 25% profit surcharge and receive the selling price. The 25% margin is usual for food.
rebates You must also take this into account in the price calculation. You are free to choose them. For example, discounts for new customers are to acquire customers. Is your product Depending on the season, should you raise prices during the season and offer discounts out of season. In addition, you create an incentive to buy. During the season, higher demand determines the price. If customers are in demand for a specific product, it makes economic sense to raise prices. If demand is low, increasing prices makes less sense.
As already mentioned, the product price results from the cost of the product and the profit surcharge. It is similar Fluctuations In the Demand Off and also allows you investments. The profit surcharge, too profit margin or margin Called, is derived from the difference between List price and cost. The list price is the price that customers pay Pay the maximum Would. It is the price that the manufacturer recommends. The margin can Vary depending on the industry. So be guided by the market competitor as to what profit margin is possible.
The price calculation also includes your Involve customers. You need to know who yours beforehand Target Group Is. Then you can estimate what price they can pay. Depending on demand, however, you have to consider what price they are actually willing to pay. Your marketing And you should also address your branding to the target group customize.
To find out the target audience, you can use tools or Social media surveys Perform or a Marketing Agency Order. You can also use people in your personal environment Ask. This also gives you initial clues. With the help of Target group surveys Can you find out what the maximum price should be and how high the demand is in general.
If you're just starting your business, it may be less appropriate to Market Research Institutes such as Skopos or Sinus Institute to Commission. You can find various target groups, for example, at the Sinus Institute in the Sinus Milieus.
You should also the Analyze competition. What price is she asking for a similar product? You shouldn't adopt this blindly, but it provides you with guidance.
Are you Competitors Known, can you simply see their offer and prices google. You should look at which Strengths and Weaknesses Have their products. If you think your product is better or it is better and you can sell it to your customers that way, then you can bet on a higher price.
When calculating sales prices, you should consider which pricing strategy You want to drive. There is the high-price, medium-price and low-price strategies. All three are possible. You should think about what makes the most sense for you.
It is up to you whether you set your prices in a cost-oriented manner, or whether you choose according to the DemandYours Target Group Or the Contest Correct. Are you going cost-oriented Before, calculate the lowest price that is possible for your company without making losses. With the competitive method, you try to undercut the price of the competition. Or you focus on the target group and what they can and want to pay. If you have hardly any competition because your product is unique and demand is high, you are very free to determine the price.
At the High-price strategy Do you upgrade your product with your Brand Or special Quality Or other unique featuresThat make your product stand out from others on the market. But you definitely have to build up the brand first or justify the price with the quality and also disclose it transparently in order to convince customers. Consumers Trust Oftentimes Marques And are willing to spend more money on it.
With the high-price strategy, you start from the highest possible price that your customers pay. It works because your product has a unique selling point. The low price strategy, on the other hand, tries to score points with the lowest price that is possible for your company. You choose the strategy when there are many other products similar to yours.
At the Mid-price strategy Are you in constant competition with other competitors. You put the price in the average The competition. You must then observe whether the competitors have their Raise or lower prices.
At the Low price strategy Is your Price always lower As that of the competition. You may increase your sales figures as a result. But you also run the risk that consumers will use your products for Poorer quality Hold. If a product similar to the one you offer is already on the market, you can try to beat the competitors' price. However, this leads to a downward spiral. You should only make the price low enough that it still pays off for you.
In line with the motto 'Before the price calculation is after the price calculation'You should keep an eye on your prices and those of the competition and adjust them if necessary. Don't just accept the competitors' prices and calculate sooner conservativelyWhat the Demand After your product. You should also not overestimate your costs. There are helpful ways to calculate the sales price Excel-Tools of For Founders.
Depending on the form of your company, you must consider various aspects when calculating your cost. Prices in one limited liability company Calculation is roughly the same as described so far. Since you base your sales on products, you can also Wages as Expense Costs Deal with them and assert them. There you get a regular salary, which is in the Price calculation Stuck in. You should pay out a standard market wage, which may vary depending on the industry.
The costs look a bit different if you're not selling a product, but yours Working timeIf you work as a consultant. With such a Partnership Is the basis for the price calculation your available Working hours. Your costs consist of personnel costs, insurance — in particular social security — and office rent.
You then calculate the working hours that are available to you in the year and divide the costs by time. Remember that you are taking a vacation and that you are sometimes ill. You can't work on those days and therefore you can't earn any money. The organization also takes time, which you should consider in the price. Because you can't charge your customers for them. When you Freelancers or Service Providers If you are, do you also add private costs.
As Partnership Do you not take the salary into account in the price calculation because it is a private collection acts. The Money Is Withdrawn from Equity and May Do not reduce tax burden. That would be the case if the salary were regarded as expense costs. Instead, you can Imputed entrepreneur's wage Calculate and include in the price. You can freely define the salary of a partnership.
You actually always need the price calculation. Regardless of whether you're founding a company or a start-up. Or you simply want to check your sales prices and adjust them if necessary. The basis is a precise financial plan. In your financial plan You present prices, costs and sales. The selling price should cover your own expenses. The margin you make offsets fluctuations in demand and depends on the industry. You should adapt your pricing strategy to both your product and your target audience. There are of course a few ways to calculate the sales price digital tools.
Determining sales prices is important preparatory work as part of your (food) marketing. Once you have determined the (new) selling price, the next step is the now valid prices for your products at reckoning to take into account. Of course, it may happen that you vary the sales prices slightly depending on the customer or customer group. In this way, the correct consideration of the (new) sales price can quickly escalate into a complex issue.
How good that the Freight pilot There is. Because with FrachtPilot, you can simply enter your (new) sales prices and their date of validity with just one click. And that also for every customer and per customer group. Or you can make things even easier for yourself and use FreightPilot's automatic import function for sales prices.
But where would we be if there wasn't more. A lot more!
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