The price is the amount of money that the buyer must transfer to the seller for the purchase of a unit of goods.
The price includes all expenses for the production of goods (raw materials, auxiliary materials, fuel, wages to participants in production, expenses for the operation and maintenance of equipment, profit of enterprises, taxes, etc.). Depending on the stage of the movement of goods, their prices are divided into purchasing (for state purchases of agricultural products by the state), wholesale (for other goods sold in large quantities) and retail.
The retail price is the price that retail customers must pay for the product when they buy it. Such prices are set for goods sold in small quantities for personal consumption.
In addition to the wholesale price, this price also includes trade mark-ups, the value of which becomes known at the time goods are sold.
There are two types of retail prices: state and market prices. The first type of prices is set as planned (they were characteristic of command economies). In the second - they are formed under the influence of factors such as supply and demand freely, depending on the conditions existing in the market. It should be borne in mind that planned state prices can also influence market prices.
The state retail price is used to determine the value of goods sold in state or cooperative trade. Such pricing takes into account production and distribution costs, as well as net income, which determines the need for expanded reproduction. In the formation of state prices for industrial goods, the main elements become - the prices of manufacturers, sales taxes, as well as discounts (trade and wholesale).
The retail price of agricultural products is formed somewhat differently. In this case, its main elements are purchase prices, margins produced by the procurement organization, margins of trade organizations and trade discounts.
Retailers receive goods from wholesalers at wholesale prices. As you move from the warehouse to the trade organization, the wholesale margin is added to the producer price, which comes at the disposal of wholesale bases to cover their costs of storage, delivery and sale of goods.
In fact, the retail price is the most complete, since it includes all the costs and planned accumulation of business units that are involved in the production and sale of products. When setting retail prices, the costs associated with the promotion of goods from producer to seller, taking into account each intermediate link, are taken into account. That is, the retail price includes all operating costs of the product manufacturer, its distributors and the retailers themselves.
Retail prices are calculated by multiplying the cost of expenses (for the purchase of goods) by a fixed percentage of the premium. For example, if a product was purchased at a wholesale price of 80 cu, then with a trade margin of 20% its retail price will be 96 cu
Often, manufacturers of high-quality products with extensive sales markets themselves establish control over the formation of retail prices for their products.
Today, retail prices are calculated using computers using special programs that are able to take into account all categories of trade allowances that are “layered” on the initial cost of the goods.
Accounting in the retail trade requires strict fixation of all operations (with documentary evidence) associated with the formation of retail prices. There is currently no unified form of the “Retail Price Register” - there is only one recommended for use in the field of retail sales (the form is contained in the letter of the Ministry of Economy N 7-10260 dated December 20, 1995). However, most accountants are of the opinion that its use no longer meets modern requirements. Therefore, each organization should develop a registry form independently, taking into account the characteristics of its own activities.