Cost structure
The price is a key factor when choosing between various products.
The pricing structure will be as follows:
- Price supplementation Sports supplier
- Handling costs
- Costs of packaging
- Distribution costs
- Margin of wholesalers or agents
- Tax
- Margin retail sale
- Payment of Royalties
Our growth will be between 30-50% of PVP unit on the market.
Production Cost
Raw 0.4 €
Packaging 0,3 €
Labor 0.5 €
Indirect Costs 0,3 €
TOTAL 1.5 €
The pricing methods
Work with a margin over costs between 60-80% compared to the raw material, although the margin on the product than us.
As for the sale of products on the market, we will work 30-50% of production methods
And always calculate 20-30% profit Real
Prices are set according to the prices of own brands and competitors.
A price is set above the usual PVP and even higher than its competitors, as also adds value packaging and sales unit.
Also it will take into account for fixing prices and the corresponding demand segment. It is more sensitive to price increases than other segments
Strategies or pricing policies
The strategies to be followed will be a price increase on the price of 20-30%
This policy is influyenciada by product values.
Habra products and brands that will give us greater margin than others, although it will supply in total supplied supplements, other supplements that give more profitability
Also strategy on prompt payment discount or large quantities to distributors and will apply those segments where price sensitivity is higher
Also bonus or discounts to other segments in order to increase the purchase and loyalty will be offered to customers
Our main strategy will be the negotiation of supplier costs, either through joint venture arrangements or by the payment of royalties on sales.
It seeks to reduce the impact of packaging costs and logistics costs in the price.
The aim is to reduce the initial cost of the product, in order to increase the profit margin agreements in exchange for payments to suppliers about the benefits or through joint ventures with brands