How to calculate sale price of product?

Vietnam
March 14, 2013 3:15am CST
I have worked here for 4 years. There were many accounting staffs whom they can't do that. Do you know the way to calculate sale price of product? Please advice in retail major. When we purchase from distributor, then resell. I think that this is the most simple major to calculate sale price. Thank you very much.
2 responses
@airasheila (5454)
• Philippines
14 Mar 13
hello there tkonlinevn, usually sale price of an item varies to the low of supply and demand. most of the time, an item will have a higher price if it is in-demand. as there are so much consumer who avail of that product. however, that situation is somehow the general rule. but, if you will go on the other side, it is not really proper to base the pricing on the law of supply and demand, although it can give you a big return after all. hence, what is really proper is, just to impose a percentage wherein you calculate around 25% to 35%. in this way, you can be sure that your profit will definitely do a good rollover. especially that, a lot of famous businessman always says, don't impose a higher mark-up or else your product will go outdated as it will not be loved by the mass market.
@grkelly (1206)
• Malta
14 Mar 13
The selling price of a product depends on its availability (low supply = higher price). You also need to take into account its cost, and its level of quality. Then, you need to consider the percentage return on investment you expect to make / or the profit per unit. Any distribution costs need to be seen too as well.