★ Product Price Structure
Product price setting is an important part in the life of a product, and I have to say, there are a lot of important processes that make the big picture work.
Everything goes down to planning, analysis, preparation and execution.
I will be covering this process in my notes and will get to marketing soon=)
Plan->Budget->Execute->Check=Profit
Below you may see an example of a product price structure.
This example covers 1 unit sold from a foreign company to a partner located in Russia.
P5 Price = NS (Net sales amount) the company receives for selling 1 unit.
MP% - 36% would be a good level of MP%, if for example all your expenses are 20%. This would mean your OP is 10%. See #note2 for ★Financial stuff / P&L (Profit & Loss)
I think the rest of the structure is visible on the chart below, but I will go into details in my future notes.
@ lightonus #pmnotes #note3
Tag along, take care and see you soon!