Markup Percent Permission Per Item. Socially significant products

As the expert notes, the highest markup is set for goods whose consumer is minimally sensitive to price, such as elite alcohol, expensive cheeses, meat products, etc. part of the price revision. This January, the main factor in the increase in prices on the shelves is that suppliers are revaluing goods purchased or produced in the conditions of the dollar and euro exchange rates established in December 2014. In December, retailers held back suppliers' attempts to revise prices in order to increase traffic,” explains Mikhail Burmistrov, CEO of InfoLine-Analytics.

The retailer's mark-up on the top 300 products that attract traffic, and on all socially important products, is usually minimal; in addition, this year the strategy of federal retail chains will not be aimed at marginality, but at increasing traffic and organic growth, and in the face of declining incomes of the population, retailers will be forced to sacrifice margins, the expert believes.

Later on Wednesday, the Dixy network provided data on its margins. The retailer admitted that it was forced to raise retail prices following the change in conditions by suppliers, “however, it does this not symmetrically and with a maximum delay.” From the beginning of 2014 to the beginning of 2015, Dixy notes that the growth of purchase prices has outstripped the retail prices on the shelves for the main consumer basket by 4.6% and by 2.2% in general for the entire range. "For goods social group the network sets a minimum trade margin, in some cases zero. For example, the margin on buckwheat, sunflower oil, drinking milk, granulated sugar, chickens, millet, apples in different regions ranges from 0 to 5%,” the company said in a statement.

“It is a mistake to consider the trade margin as the network's profit. Profit will be formed after deducting the costs of paying staff, renting stores and warehouses, transportation costs, taxes and much more. Each chain operating in the economy segment strives to do everything possible to reduce these operating costs in order to be able to further lower prices, which means attracting even more customers,” commented Ilya Yakubson, President of Dixy Group.

On January 27, the Moscow prosecutor's office, following the results of inspections, found that markups on groceries in the capital's stores reached 130%. As stated by the supervisory agency, its employees found "unjustified trade margins" in "Azbuka Vkusa", "Crossroads", "Magnolia", "Dixie", "Magnit", "Bill" and "Spar".

Metropolitan prosecutors, based on the results of inspections, opened 418 cases of administrative offenses. 83 presentations were made to the heads of trade organizations and 32 warnings were issued. In addition, the submission was made to the head of the Department of Trade and Services of Moscow.

Russian Prosecutor General Yuri Chaika to conduct inspections in the stores of the largest retail chains from January 20 to 23.

Any seller, in order to make a profit, strives to sell his goods at the highest price. The difference between the purchase price of a product and its sale price is the trade margin. This margin cannot be equal to zero, since the seller bears the costs of transport, staff, retail space, and so on. Selling at the purchase price without a premium is unprofitable for the seller.

The value of the margin on products depends on many factors. These are the presence and severity of competition, the quality of the product, the "hype" of the brand, the purchasing power of the population, as well as the restrictive measures that the state imposes on certain types (groups) of socially significant goods. The combination of these factors does not allow an unequivocal answer to the question of what mark-up should be retail.

Today in Russia, the maximum margin for goods is not set by law for most goods. This means that, for example, if you are the owner of a unique product, then by buying it, conditionally, for 1,000 rubles, you can set the price of 1,000,000 rubles. After all, only you own this product. But there is a limitation here too. This restriction is imposed on the seller by the market. And who will buy a gadget or clothes for such a price? Is the consumer value of this product so high?

The ability to set the optimal price for a product, that is, an understanding of how to correctly mark up a product, is determined by the knowledge or, if you like, the talent of the seller. If the price of your product from competitors is within certain limits, then a significant price increase will not bring you profit, as sales will decrease, and an underestimation of the “cheat” may not increase turnover and the seller will incur losses.

Trade margin calculation

The amount of the seller's profit depends on both the trade margin and the volume of sales.

A very high premium on the purchase price can significantly reduce sales, and an unreasonable decrease in it underestimates the overall profit. First, let's look at the factors that affect the value of the trade margin. This is, first of all:

• the presence of strong competitors;
• remoteness of the outlet from the suppliers of goods;
• an assortment line of similar products at a point of sale (for example, the number of brands of chocolate in the confectionery department);
• accommodation in a place that is visited by a large number of people;
• trademark (brand) recognition;
• whether your product is a consumer product or a durable product.

Read also: Working capital turnover indicators

The minimum markup on goods for tax can be calculated based on the break-even point. This can be done in a simple way.

For example, an entrepreneur purchased a batch of homogeneous products for 100,000 rubles and intends to sell it in one month. At the same time, his expenses for renting the premises amount to 5,000 rubles, the staff salary is 25,000 rubles, and other expenses (accounting, cleaning, transport amount to 10,000 rubles. Then the minimum markup will be:

Markup = (5000+25000+10000)*100/100000 = 40%

A smaller mark-up on the purchase price brings losses, and a larger mark-up brings profit. However, if the turnover is growing and the entrepreneur can sell the batch in half a month, then the minimum markup will be:

Markup = (2500+12500+5000)*100/100000 = 20%

This simple example shows that with a 30% markup, you can get both a loss of 10,000 rubles per month and a profit of 20,000 rubles per month. That is, you can get 20,000 rubles of profit both by increasing the margin to 60%, and by doubling the turnover.

However, it should be remembered that price reduction does not always lead to an increase in turnover. For branded seasonal goods, the margin in the first "hot" months (weeks) of sales can reach 400-500% or even more. Therefore, out of season, sellers set discounts up to 70% and still make a profit.

Do all items need to be priced the same?

If an entrepreneur sells a limited range of products, then he sets individual margins for each item and can respond flexibly to fluctuations in demand. Such an approach is difficult with a wide assortment at the point of sale, even purely technically (it is difficult to frequently change price tags on hundreds of samples displayed on the shelves), although modern “smart” computer programs can analyze the progress of sales and give advice to the seller.

Entrepreneurs usually break down their products into commodity groups. For example, meat products, dairy, groceries, confectionery and so on. What percentage of the markup on goods in retail trade should be set according to different groups goods can be evaluated by analyzing the prices of competitors.

At first glance, there is nothing easier than answering the question, how to properly price a product, but also in this issue There are some nuances that a novice entrepreneur needs to know.

The markup is the difference in monetary terms between the wholesale and retail prices of goods. In the case of the purchase of goods with further resale, you expect to receive a certain profit and benefit, for this you need to decide what markup to make on the goods. This issue must be approached sensibly and rationally, if the margin on the product is high, then they simply will not buy it, if it is low, then you will not make a profit, the golden mean is important here. Let's get down to detailed description moreover.

1. Compare competitors' prices.

Very simple. We looked at the price of your competitors, and figured out whether the extra charge is enough for you or not, whether you can compete, because you must fully recoup your costs. For example, your competitors sell goods for 200 rubles. You can make purchases from suppliers for an identical product for 100 rubles, in the end we get a 100% markup, in this way you can work with the correct margin on the goods. Do not exceed the price of the goods, this is fraught with the fact that their purchases will be made from your competitors, and not from you. Measure profits against costs, it will help make the right assessment. Choose the right suppliers and constantly look for great deals, because you can always find a better supplier than the one you already have.

2. If the market price is significantly inflated.

Do not allow a strong reduction in price compared to the market, in other words, avoid dumping. Lowering the price will soon saturate consumers with services or goods, and this promises that your business will not last long. You can also break the market, competitors will have to cut the price after you. This is not to be allowed! Choose a tactic to compete on quality but not on price. If you want to drop the price, then you need to do it right, this should not lead to global implications on the market and the depreciation of goods.

3. Service markup.

For one service, you can make different margins, in connection with this, prices in today's market vary significantly. For example, today there are companies that can make your personal website for you for 5,000 rubles, but there are also those that will create a website for 100,000 rubles. In this matter, everything depends on the quality of the work done, the professionalism of the performers and the wishes of the client. On how much you evaluate your work, this will be the margin. The main thing is to keep a record of all the costs associated with the execution of the order, so you prevent the possibility of being at a loss.

Conclusion

You have to see your benefit from the beginning, so you will see if your efforts are worth what you are doing. The markup on a product is a rather peculiar thing, if you spend it correctly, you will receive your income.

After reading this article, you will surely understand how to properly price a product We wish you good luck and prosperity of your business.

This question should be of interest to entrepreneurs for at least two reasons. First, it is necessary to establish adequate competitive prices for own goods before selling (pricing). Secondly, correctly calculate the price at which competitors are purchased.

Product markup- this is an allowance to the cost of goods, which forms the final price. A correctly calculated margin gives the entrepreneur the opportunity not only to cover the costs of organizing a business, but also to receive the expected income. Typically, the trade margin is set as a percentage of the cost of goods.

What determines the price of a product?

The markup level depends on:

• the product itself, its consumer properties, quality and demand, competitiveness of the manufacturer that produces the product;
• expenses associated with the organization of sales (storage, transportation, delivery of goods to the end consumer);
• from the tax amount. A percentage of the tax is usually added to the markup on the product, thanks to which the company saves itself from losses.

How to make a markup on the goods correctly?

The final cost at which you will offer your product, first of all, should suit buyers. Therefore, in trade there are no strictly established coefficients that must be adhered to when pricing. But there are average indicators for segments, which you can build on:

• clothing and footwear: from 40 to 105% markup
• souvenirs, accessories and bijouterie: more than 100%
• spare parts for cars, auto and motorcycle accessories: 30 - 55%
• home goods, stationery: 25 – 65%
• cosmetics: 25 - 75%

Example: Your supplier sold you a perfume for $50. Markups for cosmetics can range from 25 to 75 percent. Let's say you chose 40%.

50$ * 40% = 20.

Your selling price in this case:

50+20=70$

Calculate markup:

40/25-1 = 60%

How to find out the purchase prices of competitors?

As an entrepreneur, you may be interested in competitors' purchase prices for a simple reason: you have one supplier and you want to determine if the competitor enjoys any privileged conditions from the supplier. Simply put, is the supplier selling the product for the same price to you and your competitors.

To do this, select a category for comparison. For example, we evaluate T-shirts. A competitor is selling it for $20. You know that under the terms of the contract, a competitor, like you, cannot mark up this product above 60%. To calculate a competitor's purchase price, you need to add one to the markup, and then divide the final price by the resulting number.

In the given example, the calculations will look like this:

20/1,6=12,5$.

We hope we have helped you understand how to calculate the trade margin and set the selling price of goods.

The organization purchases goods for further resale to the dealer. Organizations are not interdependent. The prices of sold industrial goods are not subject to state regulation, as well as regulation by the constituent entities of the Russian Federation and local governments.
What is the minimum markup on a product that can be done so as not to violate tax laws?

After considering the issue, we came to the following conclusion:
Tax legislation does not regulate pricing. The price specified in the agreement with a dealer that is not recognized as an interdependent person with a supplier is recognized as a market price for tax purposes.

Rationale for the conclusion:
First of all, we note that the tax legislation does not regulate the size of the margin established when selling goods.
The fundamentals of state regulation of trading activities in Russia are defined by N 381-FZ dated December 28, 2009 "On the fundamentals of state regulation of trading activities in Russian Federation".
The norms of the Tax Code of the Russian Federation regulate only the procedure for taxing transactions.
At the same time, according to the Tax Code of the Russian Federation, for the purposes of the Tax Code of the Russian Federation, the prices used in transactions, the parties to which are persons who are not recognized as interdependent, as well as income (profit, revenue) received by persons who are parties to such transactions, are recognized as market prices.
If in transactions between related parties commercial or financial conditions are created or established that differ from those that would take place in transactions recognized in accordance with Section V.1 of the Tax Code of the Russian Federation as comparable between persons who are not related, then any income ( profit, proceeds) that could have been received by one of these persons, but due to the indicated difference were not received by him, are taken into account for tax purposes from this person. See also the Ministry of Finance of Russia dated 10/18/2016 N 03-12-11 / 1/60594, dated 11/11/2015 N, dated 03/23/2015 N, dated 03/10/2015 N, dated 01/23/2015 N, etc.
Thus, it follows from the above norm that any price indicated in an agreement concluded with a person who is not recognized as interdependent for the purposes of the Tax Code of the Russian Federation is a market price.
And if the contract with a person recognized as interdependent sets a price lower than that established for other persons (that is, below the market price), then the supplier receives additional income subject to taxation.
At the same time, according to the Tax Code of the Russian Federation, if in a transaction between related parties the prices of goods (works, services) that do not correspond to market prices are used by the taxpayer, if the specified discrepancy has led to an understatement of the amounts of one or more taxes (advance payments) specified in the Tax Code of the Russian Federation, or an overstatement of the amount loss determined in accordance with the Tax Code of the Russian Federation, the taxpayer has the right to independently adjust the tax base and the amounts of relevant taxes (losses) after the expiration of the calendar year, including the tax period (tax periods) for taxes, the amounts of which are subject to adjustment (FTS of Russia dated February 15, 2016 N ED-4-13/ [email protected]).
Thus, tax legislation does not regulate pricing, and any markup can be set in the contract for the resale of goods. Only when the goods are sold to a person who is not recognized as related, the price specified in the contract is recognized as a market price and no additional taxation arises. And when selling goods to an interdependent person, it is necessary to compare the value of the goods with the value of the goods sold to persons not recognized as related, in order to determine whether the price specified in the contract corresponds to the market price.
The general criteria for recognizing persons as interdependent are established in the Tax Code of the Russian Federation, according to which persons are recognized as interdependent for tax purposes if the specifics of the relationship between them may affect:
- conditions and (or) results of transactions made by them
and/or
- economic results of their activities or activities of persons they represent.
To recognize the mutual dependence of persons, the influence that may be exerted is taken into account (paragraph two of the Tax Code of the Russian Federation):
- due to the participation of one person in the capital of other persons;
- in accordance with the agreement concluded between them;
- if there is another possibility for one person to determine the decisions made by other persons.
Such influence is taken into account regardless of whether it can be exerted by one person directly and independently or jointly with its interdependent persons recognized as such in accordance with the Tax Code of the Russian Federation.
Taking into account such influence, the Tax Code of the Russian Federation provides a list of grounds for recognizing persons as interdependent (Ministry of Finance of Russia dated 03.08.2016 N 03-01-18 / 45745).
The list of grounds for recognizing persons as interdependent, given in the Tax Code of the Russian Federation, is not exhaustive. In the presence of the circumstances specified in the Tax Code of the Russian Federation, the parties to the transaction (organizations and (or) individuals) have the right to independently recognize themselves for tax purposes as related parties on other grounds (TC RF).
A court may also recognize persons as interdependent on other grounds not provided for by the Tax Code of the Russian Federation if the relationship between these persons has the characteristics specified in the Tax Code of the Russian Federation (TC RF).
From the Ninth Arbitration Court of Appeal of October 27, 2010 N 09AP-23959 / 2010, paragraph 9 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation of October 12, 2006 N 53 "On the assessment by arbitration courts of the validity of obtaining tax benefits by taxpayers" (hereinafter - Resolution N 53) it follows that if the tax authority concludes that the price does not correspond to the level of market prices, then this must be proven, including evidence from the tax authority that the main goal pursued by the taxpayer was to receive income exclusively or mainly from the tax benefit in the absence of an intention to carry out a real economic activity.
For example, the Second Arbitration Court of Appeal dated October 27, 2015 N 02AP-8562/15 can serve as an example of the presence tax risk in relation to the situation under consideration.
By this case the courts came to the conclusion that the taxpayer created an artificial relationship scheme aimed at obtaining unreasonable tax benefits and illegal minimization of the tax burden.
The basis for the additional charge to the company of the disputed amounts of income tax and value added tax, the corresponding amounts of penalties and fines was the conclusion of the inspection that through the concerted actions of the company with individual entrepreneurs who have been full-time employees of the company for a long time, the company created a tax evasion scheme by formally concluding dealer agreements with the indicated persons for the sale of the company's products in shopping malls society for cash.
In addition, the cash registers installed in the halls belonged to the society and were leased to entrepreneurs; part of the company's employees are registered as part-time entrepreneurs; goods sold by entrepreneurs were issued from the warehouse of the company; proceeds from the sale of goods were returned to the company in the form of interest-free loans issued by entrepreneurs and the financial director of the company, as well as in the form of prepayments for goods excessively transferred by entrepreneurs to the company.
As a result, with reference to Decree No. 53, the court recognized as justified the conclusion of the tax authority that an organization received unjustified tax benefits, which, when registering the sale of goods to dealers, applied an insignificant margin (4-7%), significantly lower than the trade margin with which the goods were sold to a real buyer (32-37%).
It should be noted that by the decision of the Supreme Court of the Russian Federation of June 27, 2016 N 301-KG16-6290, the company was denied the transfer of a cassation appeal for consideration of the said case in a judicial session of the Judicial Collegium for Economic Disputes of the Supreme Court of the Russian Federation.
In the Arbitration Court of the West Siberian District dated June 24, 2016 N Ф04-2500/16, the tax authority saw a tax minimization scheme, as a result of which the company received an unreasonable tax benefit in the form of a difference in tax liabilities arising from the application of general and special taxation regimes (UTII); the indicated conclusion was made in view of the fact that the company sold the goods to interdependent persons with a minimum trade margin; further, when the counterparties sell the goods to the end buyers, the trade margin increased; the difference in the trade margin was not taxed under the general taxation regime, but at a preferential UTII rate.
However, in this case, the courts did not support the tax authorities, recognizing that civil law allows for the joint activities of business entities in order to profit from the implementation entrepreneurial activity.
The joint activity of economic entities (even if they are interdependent) does not in itself indicate the receipt of an unjustified tax benefit. In accordance with clause 4 of Decree N 53, the possibility of achieving the same economic result with a smaller tax benefit received by the taxpayer by performing other operations provided for or not prohibited by law is not a basis for recognizing the tax benefit as unreasonable.
It follows from the question that the buyer of the goods is not a person recognized as interdependent with the supplier. Therefore, in this situation, the supplier has the right to set any markup for the resale of goods. At the same time, the value specified in the contract will be recognized as market value for tax purposes.
At the same time, the presence of judicial practice indicates that the establishment of minimum dimensions markups for the goods sold is the subject close attention from the tax authorities.
In our opinion, in order to feel confident in communicating with regulatory authorities, organizations need to prepare documents justifying the minimum mark-up.
For example, these can be price lists that set different prices depending on the volume of the lot, on the distance to the supplier (in case the delivery costs are included in the price), or other indicators.
In addition, the marketing policy, the order of the head to hold promotions that involve the provision of discounts to customers, with the rules for granting discounts (for example, for the purchase of a certain amount of goods) and other documents, including substantiating the economic expediency of pricing and discounts.

For your information:
The sale of goods with a significant margin may also attract the attention of regulatory authorities (see, for example, the AC of the Moscow District dated 05.10.2016 N F05-14755 / 16, dated 10/17/2014 N).

We recommend that you familiarize yourself with the materials:
- . Verification of compliance of prices with market prices for controlled transactions, carried out by the Federal Tax Service of Russia;
- . Interdependent persons for taxation purposes: the concept and procedure for recognition.

Prepared answer:
Legal Consulting Service Expert GARANT
professional accountant Bashkirova Iraida

Response quality control:
Reviewer of the Legal Consulting Service GARANT
professional accountant Rodyushkin Sergey

The material was prepared on the basis of an individual written consultation provided as part of the Legal Consulting service.