Advice 1: How to justify the price

Every person at least once in their life had to sell something: a product or service. Price, according to the definition of marketing, is the monetary expression of value of goods. However, in order for the sale took place, it is necessary to justify the price to the buyer and convince him to buy the product.
How to justify the price
Instruction
1
Calculate the cost of that is in each product. This measure is determined based on the specifics of the product or service. Cost reflects the costs of the seller for the production, procurement, storage and transportation of the product may indicate the amount of work and time costs. The cost also includes the costs for the preparation and start of production, the development costs of technology, salaries of staff, tax deductions, spending on advertising and competition.
2
Add benefit. Natural is the fact that cost product no one sells. Each seller in the cost of goods laid profit or benefit. Typically, to determine the financial part examines the market price, i.e. we study the prices of competitors with the same product. Advantage to higher cost of product in relation to the market can serve as the unique characteristics of products, exclusive, innovation, higher quality.
3
Include additional indicators. It is advisable to justify the price to take into account a range of variables such as the ratio of possible inflation, the coefficients of the complexity of the work. The cost can also influence regional price adjustments.
4
It must be remembered that the purchase of a product or service will take place only when the cost is below the value that the buyer receives with the purchase of the goods. Such benefits can be both tangible and intangible, but in any case, the purchase solves some problems and objectives of the client. Material values can be saving on acquisition, the profit from use of the goods in the future. Intangible benefits can serve as prestige, usability, security. In any case, you can reinforce the justification of the cost product value.
Note
According to the Federal Law of 21.04.2011 No. 79-FZ "On amendments to the Federal law "About placing of orders for deliveries of goods, performance of works, rendering of services for state and municipal needs" the state customers are obliged to justify the price of the contract for the purchase of goods or services to the state and to include cost data in the documentation. Experts suggest the tax authorities to justify the price to use the information of the state statistics service, price lists, expert opinions. It's necessary for the taxpayers in that case, if the sum of their contract 20% different from the average market rates. If the price is not justified, then the taxmen have the right to charge taxes based on the market value of the goods.
Useful advice
When negotiating and signing contracts make cost estimates, special document reflecting the calculation of the cost of goods or services. This will help you avoid the financial and tax errors, and will cause the trust from the buyer.

Advice 2 : How to write a letter about the price increase

Unfortunately, in our time, the prices only grow. Any organization at the next jump of the prices for the raw material fed in the same way, raise the prices of its products. Of course, it is necessary to inform all who buy this product. This is especially true of partners who have signed a formal agreement.
The price increase
Instruction
1
Before writing the letter about the price increase, call the organization and ask if they change details that do not change the head (so as to write a letter you will be on his name). If you send a document with the incorrect data, it may not accept, it could worsen relations between organizations.
2
Never start a letter with news of the promotion. This may entail termination of the contract. Start your letter with thanks for your cooperation. Next, you can describe the main advantages of your organization (how many years of work, achievements). In separate graph, describe all the positive qualities of your product and working with you. If your product has some changes for the better, you should note it.
3
Next, write about the price increase. Emphasize that you are also comfortable with this. Describe all the nuances, which changes the cost, for example, the increase in prices for raw materials, utilities, costs of customs clearance, etc., Indicate all positions affected by the increase.
4
If the prices for your goods has not changed for a long time, be sure to specify exactly how much. It will positively affect the perception of your writing.
5
Be sure to specify the date on which the effective date of the new rates. Never write a letter like that, in hindsight, warn customers at least a couple of weeks.
6
If clients have any discounts, specify that they continue to operate. You can write a specific price without discount and with discount.
7
The writing style should be business, don't apologise several times, it can look ugly.
8
At the end of the letter make sure to sign up (showing your position), mark the date and don't forget the phrase that you hope to continue cooperation. It is desirable that the letter was not very long, enough to write a ½ page A4.
Note
After you send the letter make sure you call and confirm whether his clients. This will help to avoid misunderstandings.
Useful advice
After writing the letter, it's better to print, sign, and scan this form to send to the client.

Advice 3 : How to justify the price

Every person at least once in their life had to sell something: a product or service. Price, according to the definition of marketing, is the monetary expression of value of goods. However, in order for the sale took place, it is necessary to justify the price to the buyer and convince him to buy the product.
How to justify the price
Instruction
1
Calculate the cost of that is in each product. This measure is determined based on the specifics of the product or service. Cost reflects the costs of the seller for the production, procurement, storage and transportation of the product may indicate the amount of work and time costs. The cost also includes the costs for the preparation and start of production, the development costs of technology, salaries of staff, tax deductions, spending on advertising and competition.
2
Add benefit. Natural is the fact that cost product no one sells. Each seller in the cost of goods laid profit or benefit. Typically, to determine the financial part examines the market price, i.e. we study the prices of competitors with the same product. Advantage to higher cost of product in relation to the market can serve as the unique characteristics of products, exclusive, innovation, higher quality.
3
Include additional indicators. It is advisable to justify the price to take into account a range of variables such as the ratio of possible inflation, the coefficients of the complexity of the work. The cost can also influence regional price adjustments.
4
It must be remembered that the purchase of a product or service will take place only when the cost is below the value that the buyer receives with the purchase of the goods. Such benefits can be both tangible and intangible, but in any case, the purchase solves some problems and objectives of the client. Material values can be saving on acquisition, the profit from use of the goods in the future. Intangible benefits can serve as prestige, usability, security. In any case, you can reinforce the justification of the cost product value.
Note
According to the Federal Law of 21.04.2011 No. 79-FZ "On amendments to the Federal law "About placing of orders for deliveries of goods, performance of works, rendering of services for state and municipal needs" the state customers are obliged to justify the price of the contract for the purchase of goods or services to the state and to include cost data in the documentation. Experts suggest the tax authorities to justify the price to use the information of the state statistics service, price lists, expert opinions. It's necessary for the taxpayers in that case, if the sum of their contract 20% different from the average market rates. If the price is not justified, then the taxmen have the right to charge taxes based on the market value of the goods.
Useful advice
When negotiating and signing contracts make cost estimates, special document reflecting the calculation of the cost of goods or services. This will help you avoid the financial and tax errors, and will cause the trust from the buyer.

Advice 4 : How to determine the cost of services

The cost of services is a monetary measure of the costs that the organization incurred in the implementation of services. This value is the main quality indicator used in the analysis of production efficiency and financial condition of the company.
How to determine the cost of services
Instruction
1
As a rule, cost includes the cost of servicesI. add up the sum of expenses for one kind of servicesI. for Example, you want to calculate the cost of the procedure when eyelash extensions for one person.
2
First, determine the price for a single set of black eyelashes, for example, it is equal to 4000 rubles. Now you need to know the volume of packaging and the number of lashes that are used for one client. For example, the package volume is 4,000 lashes, and the lashes of consumption per person is 100 pieces.
3
Now the amount of packaging divide by its volume and multiply by the number of lashes, going to one client. For example, 4,000 rubles / 4000 lashes * lashes 100 = 100 rubles (the price spent eyelashes on each client).
4
Usually eyelashes "sit" on the glue, which also costs money. For example, its value is equal to 3500 roubles. The package volume is 5 ml, the flow rate for each client – 0,200 ml to calculate the amount of glue spent per client, you need the cost of the package divided by the total volume and multiply by the amount of glue spent on one client: 3500 rubles / 5 ml * 0,200 ml = 140 rubles.
5
When building is in use and disposable brushes. For example, a package worth 500 rubles, it includes 50 brushes. Each client gets one thing. Calculate the cost of brushes on each client as follows: 500 rubles / 50 pieces * 1 piece = 10 rubles.
6
Also when scaling is used medical adhesive tape, which costs 400 rubles. Package size is 6 meters, each customer on average spends 10 cm, 400 rubles / 600 cm * 10 cm = 6.7 rubles.
7
Summarize. To do this, add up all the costs that you incurred in the provision of servicesand: 100 rubles 140 rubles + 10 rubles + 6,7 rubles = 256,7 rubles for each client. This number will be the cost of servicesI.
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