Trading margin and its consequences

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The last few years in our country there has been a rapid growth of business. Every year the number of entrepreneurs is growing exponentially, increasing not only the investment climate in our country, but also tax deductions to the budget. Naturally, every entrepreneur fights for his own benefit, and it is the trade margin that is the main source of income for his enterprise. There is a practice in which some businessmen deliberately set the price above the established norms. The trade margin is the difference between the cost of goods at a wholesale warehouse or manufacturing plant and the retail price.

Today's entrepreneurs already have ready-made solutions for fixing the price of goods sold, depending on the products. If you are entering the market for the first time with a new product, then you need to know that the trade margin is calculated from the quality indicators of the consumer properties of the product and market conditions. Taxes and excises must also be included in the calculations. Only after all the calculations have been made will you be able to find out how much the trade margin should be in order for yourthe enterprise was profitable.

Beginning entrepreneurs believe that lowering the price will lead to crowds of buyers and even allow them to divert customers from competitors, but this is not so. Statistics is a stubborn thing, which shows that often the consumer chooses not only the price, but also the quality of the goods, the level of service, the environment and many other factors that affect his priorities. As experienced businessmen say, at the initial stage, the trade margin should be at the level of the average market plus or minus 5%. This will not scare away the majority of customers with the price and will allow you to earn your regular customers over time. It should also be noted that the government regulates the prices of some consumer goods, and if you exceed these criteria, you will be fined.

It will be quite easy to calculate these figures, since when submitting information to the tax balance sheet, it will show what the trade margin is. Postings on such indicators are carried out on the credit of account 42 and the debit of account 41. It is worth noting that during the first checks, some entrepreneurs receive substantial fines for violating the established requirements. The most popular excuse in this situation is ignorance of the regulations and government decrees relating to the sale of consumer goods.

The trade margin is, first of all, the "bread" of any businessman engaged in retail sales. By purchasing a product, each consumer realizes that he overpays. More and more often wewe hear stories from the TV screen or from friends that some people "dress up" abroad. Such purchases allow you to recoup not only shopping trips, but even the cost of air tickets. Statistics show that only 5% of our citizens "dress" in this way. The rest prefer to walk to the nearest market and overpay 2-3 times for the same thing, but save themselves from long flights with inconvenience.