How to Determine the Selling Price of a 100Ml Round Short Neck Bottle - How to determine the selling price for business owners is very crucial. Moreover, in the online product pricing strategy, several calculations are needed that are different from offline. That's because determining the selling price will affect almost every aspect of your business. For example, cash in and out, profit, operations, etc.

Well, if you have an online store, then you are in the right article because we will provide information about the selling price of the latest 100ML ROUND Short neck BOTTLE. Here you will learn how to set your selling price online with a number of effective strategies to maximize your money. Come see.

Important things to determine the selling price of the product

All three will be used in the strategy of determining the selling price of the product. So, let's define those three things first.

1. Variable Cost

Variable costs are costs that can change the amount of production. The more products that are made, the greater the variable costs incurred. Before getting into how to determine the selling price of a product, you need to calculate variable costs as a reference for your capital. For those of you who sell products from other manufacturers, you can calculate the total capital.

Examples include capital for product purchases, transportation or shipping costs, etc. The variable cost incurred for one Bottle of 100Ml Round Short neck is IDR 20,000. However, if you make it yourself, then the calculations will be much more complicated. For example, some of the following are categorized as variable costs:

• Cost of raw materials. It fits your production needs. For example, making clothes requires cloth, thread, needles, etc.
• Labor costs. All workers involved, including overtime pay if required;
• Cost of production equipment. Such as production engine oil, electricity, water, etc
• Commissions or incentives. Usually intended for salesmen to further increase sales.

2. Profit Margin

Your goal in selling a product is to make a profit, right? Now, having calculated the variable cost amount, let's add up the profit margin or profit difference for each product. Profit margin can help you calculate your total profit and determine the selling price you will release to the market.

With a variable cost of Rp. 20,000 plus 40% profit from variable costs, the selling price you get is Rp. 33,333 for each bottle. This method is the most basic way, there are several other ways you can try. We'll cover that in the next section, so read on.

3. Fixed Cost

There is one more cost that you need to consider in your pricing strategy, namely fixed costs. These costs include things that are certain and you have to spend. No matter how much production you do, these costs usually remain worth it. For example the cost of renting a place, taxes, etc. These fixed costs force every business person to sell as many products or services as possible.

The goal, of course, is to cover fixed costs. It should be noted that there is no specific way to calculate these fixed costs. However, to close it, you can increase the profit margin. For example, set profit per product is 50%, then allocate 20% for fixed costs. However, variable costs have a high selling point.

How to Determine the Selling Price of 100Ml Round Short neck Bottle Products

There are several ways that you can use when determining the selling price. This time, we will provide several ways that you can try. Some of these methods are considered capable of determining prices proportionally, without reducing profits and remaining competitive with competitors. Whatever?

• Margin Price
• Price Markup
• Keystone prices
• Best Price Value.

Thus the review of the article that we made about how to determine the selling price of the 100ML ROUND Short neck BOTTLE, hopefully it will be useful.