How to calculate the percentage of the amount? How to make a field with a discount on a product How to calculate with a discount.

22.09.2022 Children

The concept of markup and margin (people still say “gap”) are similar to each other. They are easy to confuse. Therefore, first we will clearly define the difference between these two important financial indicators.

We use the markup to form prices, and the margin to calculate the net profit from the total income. In absolute terms, markup and margin are always the same, but in relative (percentage) terms they are always different.

Formulas for calculating margin and markup in Excel

A simple example for calculating margin and markup. To accomplish this task, we need only two financial indicators: price and cost. We know the price and cost of the product, but we need to calculate the markup and margin.

Margin formula in Excel

Create a table in Excel, as shown in the figure:

In the cell under the word margin D2, enter the following formula:

As a result, we get the indicator of the margin volume, we have it: 33.3%.

Formula for calculating markup in Excel

We move the cursor to cell B2, where the result of the calculations should be displayed and enter the formula into it:

As a result, we get the following indicator of the markup share: 50% (it is easy to check 80+50%=120).

Difference between margin and markup by example

Both of these financial ratios consist of profits and expenses. What is the difference between markup and margin? And their differences are very significant!

These two financial ratios differ in the way they are calculated and in percentage terms.

The markup allows businesses to cover costs and make a profit.

Without it, trade and production would go into negative territory. And the margin is already the result after the markup. For an illustrative example, we define all these concepts with formulas:

Product price = Cost price + Markup.
Margin is the difference between price and cost.
Margin is the share of profit that the price contains, so the margin cannot be 100% or more, since any price also contains a share of the cost.

The markup is the part of the price that we added to the cost price.

Margin is the portion of the price that remains after deducting the cost.

For clarity, we translate the above into formulas:

N=(Ct-S)/S*100;
M=(Ct-S)/Ct*100.

Description of indicators:

N is the markup indicator;
M – margin indicator;
Ct is the price of the goods;
S is the cost.

If we calculate these two indicators as numbers, then: Markup = Margin.

And if in percentage terms then: Markup > Margin.

Please note that the markup can be as high as 20,000%, and the margin level can never exceed 99.9%. Otherwise, the cost will be = 0r.

All relative (as a percentage) financial indicators allow you to display their dynamic changes. Thus, changes in indicators in specific periods of time are tracked.

They are proportional: the higher the markup, the greater the margin and profit.

This gives us the opportunity to calculate the values of one indicator if we have the values of the second.

For example, margin indicators allow predicting real profit (margin). And vice versa. If the goal is to reach a certain profit, you need to calculate what markup to set, which will lead to the desired result.

Before practice, let's summarize:

for margin, we need indicators of the sum of sales and margins;
for the markup, we need the amount of sales and the margin.

How to calculate the margin as a percentage if we know the markup?

For clarity, we give a practical example. After collecting reporting data, the company received the following indicators:

Sales volume = 1000
Markup = 60%
Based on the data obtained, we calculate the cost price (1000 - x) / x = 60%

Hence x = 1000 / (1 + 60%) = 625

Calculate the margin:

1000 — 625 = 375
375 / 1000 * 100 = 37,5%

From this example, the margin formula algorithm for Excel follows:

How to calculate the markup as a percentage if we know the margin?

Sales reports for the previous period brought the following indicators:

Sales volume = 1000
Margin = 37.5%
Based on the data obtained, we calculate the cost price (1000 - x) / 1000 = 37.5%

Hence x = 625

Calculate markup:

1000 — 625 = 375
375 / 625 * 100 = 60%

An example of the markup formula algorithm for Excel:

Download calculation example in Excel

Note. To check formulas, press the key combination CTRL + ~ (the “~” key is in front of the one) to switch to the appropriate mode. To exit this mode, press again.

Volume discount

A discount for the volume of the purchased product may be provided if the buyer purchases a large quantity of a similar product. Such a discount can be set as a percentage of the total cost of a consignment of goods or as a percentage of the unit price of the established sales volume. Volume discounts may be provided on a cumulative or non-cumulative basis, or as a step or incremental discount.

Cumulative, or cumulative, discounts are set depending on the number of products purchased for a certain period and involve a price reduction if, during the agreed period, the volume of purchases exceeds the value set by the seller.

Such a discount is provided even if the purchases were made in small lots.

Non-cumulative discounts are provided for each placed order, i.e., they are set for a one-time purchase volume. Such discounts encourage consumers to purchase as large a batch as possible.

Step discounts are used on the volume of purchases made in excess of the batch threshold set by the seller.

Volume discounts are categorized as quantitative. They should be offered to all customers, but care must be taken to ensure that the amount of discounts provided does not exceed the cost savings from increased sales volume.

Pricing strategy
Territorial price differentiation
Price dynamics indicators
Main drivers of price growth
Main factors of price reduction
Changing prices with discounts
Simple (general) discount
Discount for faster payment
Volume discount
Cumulative discount (discount per turnover)
progressive discount
Dealer discount
Retailer discounts
Special Discounts
Seasonal discounts
New Product Discounts
Discounts for complex purchase of goods
Quality Discounts
Service Discounts
Discounts for returning obsolete goods
Discounts on used goods
Club discounts
Export discounts
National discounts
Pricing strategy: concept, types

Calculations and plans: Formation of a scale of discounts

FORMATION OF THE SCALE OF DISCOUNT

General provisions

Prices and pricing policy - one of the main components of the enterprise, the role of which is increasing. At the same time, prices, their level and dynamics largely determine sales, and the latter, in turn, has a direct impact on the commercial results of a business entity as a whole, and this impact (positive or negative) is long-term and long-term.

In connection with such a role of prices and pricing policy in general, price variation, expressed in the application of various price discounts, deserves special consideration.

Before proceeding to a direct consideration of discounts and their economic evaluation, we should dwell on the principles of applying discounts.

First, the use of the discount system should lead to a positive economic effect. That is, discounts should not be perceived as an inevitable evil that a business entity has to put up with and which is a burden.

On the contrary, they should serve at least to maintain the level of profitability, and better - to increase it.

Secondly, the discount provided should arouse the buyer's real interest and desire to fulfill the agreed conditions, i.e. be felt for the buyer and cause the desire to receive it.

Thirdly, the system of discounts should be simple and understandable for both customers and employees of the economic entity itself. The presence of a large number of different types of discounts in one system at the same time can create confusion and misunderstanding among the buyer and significantly complicate the work of the sales department.

Depending on the conditions of provision, a large number of different types of discounts are distinguished: functional discounts, discounts for cash payment, for quantity, off-season, bonus, dealer, discounts for customer loyalty, etc.

Quantity Discounts

The most common type of discounts are discounts for the quantity of purchased products (for a larger volume of purchases). Such discounts are provided for purchase volumes measured either in natural units or in monetary terms. At the same time, the result of their application is most tangible in comparison with other types of discounts and is provided primarily by an increase in sales volumes, which positively affects the activities of the entire business entity.

These discounts are given either on the basis of a single purchase (non-cumulative discount) or on the basis of purchases over a certain period of time (cumulative or deferred discount).

Discounts can be provided both for the purchase of one type of goods, and for the purchase of several types of goods, as well as for the purchase of complex product sets, made either at a time or over a certain period of time.

Quantity discounts may have different expressions. This is either a percentage of the price, or the amount of product that can be presented to the buyer for free or at a reduced price, or the amount that can be returned to the client or credited against payment for the next amount of the product.

At the same time, quantity discounts can be non-cumulative and cumulative.

Non-cumulative discounts are discounts for the quantity of a one-time purchased product that exceeds the value of the minimum lot. For example, a product lot of up to 15 pieces has no discount, a lot of 16 to 25 pieces has a 5% discount, a lot of 26 to 35 pieces has a 7% discount, etc.

Cumulative discounts are discounts given to a customer if they purchase more than the contractual limit in a given period of time. They apply to quantities of product above this limit. The form and mechanism of applying cumulative discounts may be different. For example, cumulative discounts in the form of increasing trade discounts are as follows: with a purchase volume of up to 1000 units during the year, the trade discount for the entire volume of purchases to date is 12%, from 1001 to 3000 units - 15%, etc. For each additional volume of product purchased, the amount payable is recalculated to account for increasing discounts.

In general, this type of discount is characterized by four parameters:

1) form of discount (whether the discount is applied to all units of the product or only to units of the product after exceeding some threshold value);

2) the complexity of the discount (the number of threshold values for the volume of purchases, in accordance with which the price changes, the so-called price points);

3) the depth of the discount (the size of the price reduction at each price point);

4) units (quantity) of goods that are taken into account when calculating the discount (calculation of the discount may be based on goods of the same type in one order, or units of goods may be summed up in several categories and (or) for a certain period of time).

In general, when setting quantity discounts, certain rules must be followed.

In the case of homogeneous buyers, quantity discounts should be used if:

a) buyers (end users or intermediaries) of the product are characterized by a downward-sloping demand curve (i.e.

the maximum willingness to pay for additional units of the good decreases);

b) there are significant costs for storing stocks and transporting goods;

c) the buyer prefers to have several competing suppliers.

Where heterogeneous buyers exist, quantity discounts should be applied if:

1) large buyers (buyers of large consignments of goods) are more price sensitive than small ones;

2) there are significant costs for storing stocks and transporting goods.

The use of quantity discounts is possible under the following conditions:

on the cost side - optimization of overhead costs, incl. warehouse and transport (reduction in their specific ratio (per unit of goods), due to the fact that it is cheaper to serve larger orders;

on the part of competition - creating a barrier for competitors and the emergence of additional switching costs (note) for buyers;

on the demand side, a higher price elasticity of demand for large buyers compared to smaller buyers (the same amount of discount will be more tangible and therefore more desirable for large customers).

However, complications can also arise here, which consist in the fact that the willingness to pay for additional units of goods decreases - the buyer is willing to pay more for the first unit of the product than for the second, and for the second more than for the third, etc. In this case, the seller can increase profits by charging a higher price for the first unit than for the second, and a higher price for the second than for the third.

The pricing manager must assess whether these conditions are met in each particular case. The more pronounced one of the above conditions is, the more profitable the use of quantity discounts will be. It is usually fairly easy to assess the impact of transport and storage costs. For a situation with price discrimination (in relation to competitors and buyers), the manager needs to understand the demand curve of his buyers both for the entire market and its various segments. As a rule, the possibility of price discrimination becomes apparent if there are different levels of purchases at uniform prices. Quantity discounts require the firm to monitor purchases at the individual level - it is necessary to record and analyze purchases over a certain period of time.

Successful price discrimination requires that the firm be able to prevent resale of goods between buyers. Partial price discrimination will work as long as a large buyer paying a lower price does not resell goods to small buyers from whom the firm is trying to get a higher price.

The sales manager must also consider two other possible complications when giving quantity discounts:

1) discounts on goods purchased for a certain period. If a buyer promises to buy a certain quantity of a product during a specific period, how should quantity discounts be calculated? If there is a long-term relationship with him, a discount can be provided from the very first unit of goods. However, if the buyer still does not meet the promised number of purchases, he will be billed back for the unearned but received discount on all units purchased at a discount. Alternatively, the buyer can pay the full cost of the goods, but after exceeding a certain level of purchases, he will receive compensation in the amount of a discount on all already purchased units of the goods (the so-called retrobonus);

2) purchase in reserve. The salesperson must consider the effect of the quantity discount on customer inventory. Stocking discourages price discrimination, as even small buyers can buy ahead of time to stock up to get a discount. At the same time, such behavior will not increase aggregate demand, but only shift it in time. In addition, over-purchases for inventory caused by incorrectly formulated quantity discounts can create problems for the firm to meet all incoming orders due to lack of production capacity.

Formation of the scale of discounts

To calculate the scale of discounts, the principle of non-decreasing profit level can serve: profit at a discounted price and a new sales volume should be no less than at the initial values of the price and sales level.

Given this principle, we can derive a formula for calculating discounts:

where "Current Margin" is revenue less variable costs for a manufacturing plant or purchase cost for a trading company. If the trading company has a large amount of its own variable costs, then they should also be added to the purchase price;

“Desired Margin Growth” is a measure of the desired margin growth relative to the current level.

As can be seen from the formula, aggregated data (margin and markup percentage) by product category are used to calculate the discount scale. At the same time, the product category itself may contain a large number of commodity items with different prices, units of measurement and sales volumes.

The use of source data by product category makes the formula easy to apply in practice, since the discount scale has to be developed entirely for product categories, and not for individual items.

Let us give an example of the formation of a scale of discounts, for which we use the following initial data:

1) the volume of the order lot is 56,120 thousand rubles. (without discount);

2) the average trade margin for this category of goods is 28%;

3) the cost of purchasing the batch in question - 43,843 thousand rubles. (56,120 / (1 + 28% / 100%)).

Taking into account the given data, the size of the current margin will be 12,277 thousand rubles.

Situation 1. Maintaining the achieved level of sales profitability (zero margin growth). Let's determine the required sales volume in value terms for a 2% discount:

Required sales volume with 2% discount	=	12 277	=	60 535 (thousand rubles)
1 —	1
(1 —	2	) x	(1 +	28	)
100%	100%

According to the price list, such a batch will cost 61,770 thousand rubles. (60,535 / (1 - 2% / 100%)), purchase price - 48,257 thousand rubles. (61,770 / (1 + 28% / 100%)).

Calculate in a similar way the required sales volume in monetary terms for each discount level (Table 1).

Table 1
Calculation of the required sales volume (situation 1)
Index	Discount amount
0%	2%	5%	10%
	0	0	0	0
	56 120	60 535	69 115	93 047
	0,00	7,87	23,16	65,80
	56 120	61 770	72 753	103 385
Purchase cost, thousand rubles	43 843	48 258	56 838	80 770
Margin, thousand rubles	12 277	12 277	12 277	12 277

Note to table 1. The margin value is defined as the difference between the volume of sales (at a discount) and the cost of purchasing goods. So, for a 2% discount, the margin will be 12,277 thousand rubles. (60 535 - 48 258). Since this situation is considered from the point of view of maintaining sales profitability (zero margin growth), the difference between sales volumes and expenses for the purchase of goods will be constant - 12,277 thousand rubles.

Situation 2. Increasing the level of sales profitability. So, the customer asks for a big discount, like 5 or 10%. What counter-conditions should the company offer in order to maintain the level of profit?

For example, for a discount level of 5% or more, the company has set the desired margin increase of 500 thousand rubles. compared to the previous level (12,277 thousand rubles), and for a discount of 10% - 1 million rubles. Let's calculate the required sales volume in monetary terms for this case (see Table 2).

table 2
Calculation of the required sales volume (situation 2)
Index	Discount amount
0%	2%	5%	10%
Desired increase in margin, thousand rubles	0	0	500	1000
Required sales volume at a discount, thousand rubles.	56 120	60 535	71 930	100 626
Required increase in sales in relation to the option without a discount,%	0,00	7,87	28,17	79,30
Cost according to the price list, thousand rubles	56 120	61 770	75 716	111 806
Purchase cost, thousand rubles	43 843	48 258	59 153	87 349
Margin, thousand rubles	12 277	12 277	12 777	13 277

Note to table 2. The margin value is determined in the same way as in the first case, but since the condition for increasing profitability is set here, taking this into account, the margin value will increase depending on the size of the discount.

So, if at a discount of 2% it will be 12,277 thousand rubles. (60,535 - 48,258), then in the case of a 5% discount, it will be 12,777 thousand rubles. (71,930 - 59,153), etc., which is explained by the desired increase in the margin pre-planned in the calculations (with a 5% discount, 500 thousand rubles - see the table).

1) determine the initial sales volume from which discounts begin (for example, 60,535 thousand rubles);

2) set an acceptable margin amount for each discount level;

3) form gradations of sales volumes (obtained sales volumes for each discount level can be rounded up to the nearest round number);

4) assess the attractiveness of the resulting scale of discounts for customers.

Thus, for the example under consideration, we obtain the following data (see tables 3, 4).

Table 3
Final settlement of discounts (situation 2)
Index	Discount amount
0%	2%	5%	10%
Desired increase in margin, thousand rubles	0	0	500	1000
Required sales volume at a discount, thousand rubles.	56 120	60 535	71 930	100 626
Rounded sales volume at a discount, thousand rubles	—	65 000	75 000	105 000
Cost according to the price list, thousand rubles	56 120	66 327	78 947	116 667
Purchase cost, thousand rubles	43 843	51 818	61 678	91 146
Margin (taking into account rounded values), thousand rubles	12 277	13 182	13 322	13 854

So, if you correctly develop and calculate the system of discounts, they will be economically beneficial both for the company itself and for the buyer. Moreover, the effect that the discount gives is measured not only by economic benefits. A company that provides a discount to its customers demonstrates care, respect and increased interest in them, which most often makes them loyal to the company. And customer loyalty is more valuable than money.

Long-term financial investments in the balance sheet

A percentage is one hundredth of a number taken as a whole. Percentages are used to indicate the ratio of a part to a whole, as well as to compare quantities.

1% = 1 100 = 0,01

The interest calculator allows you to perform the following operations:

Find percentage of a number

To find a percentage p from a number, you need to multiply this number by a fraction p 100

Let's find 12% of the number 300:
300 12 100 = 300 0.12 = 36
12% of 300 equals 36.

For example, a product costs 500 rubles and a 7% discount applies to it. Find the absolute value of the discount:
500 · 7 100 = 500 0.07 = 35
Thus, the discount is 35 rubles.

What percentage is one number of another

To calculate the percentage of numbers, you need to divide one number by another and multiply by 100%.

Let's calculate how many percent is the number 12 of the number 30:
12 30 100 = 0.4 100 = 40%
The number 12 is 40% of the number 30.

For example, a book contains 340 pages. Vasya read 200 pages. Let's calculate how many percent of the whole book Vasya has read.
200 340 100% = 0.59 100 = 59%
Thus, Vasya read 59% of the entire book.

Add a percentage to a number

To add to the number p percent, you need to multiply this number by (1 + p 100)

Let's add 30% to the number 200:
200 (1+ 30 100 ) = 200 1.3 = 260
200 + 30% equals 260.

For example, a subscription to the pool costs 1000 rubles. From next month they promised to raise the price by 20%. Let's calculate how much the subscription will cost.
1000 (1+ 20 100 ) = 1000 1.2 = 1200
Thus, the subscription will cost 1200 rubles.

Subtract a percentage from a number

To subtract from the number p percent, you need to multiply this number by (1 - p 100)

Subtract 30% from the number 200:
200 (1 - 30 100 ) = 200 0.7 = 140
200 - 30% equals 140.

For example, a bicycle costs 30,000 rubles. The store gave him a 5% discount. Let's calculate how much the bike will cost, taking into account the discount.
30000 (1 - 5 100 ) = 30000 0.95 = 28500
Thus, the bike will cost 28,500 rubles.

By what percentage is one number greater than the other?

To calculate how many percent one number is greater than another, you need to divide the first number by the second, multiply the result by 100 and subtract 100.

Let's calculate how many percent the number 20 is greater than the number 5:
20 5 100 - 100 = 4 100 - 100 = 400 - 100 = 300%
The number 20 is greater than the number 5 by 300%.

For example, the salary of a boss is 50,000 rubles, and an employee is 30,000 rubles. Find by how many percent the boss's salary is higher:
50000 35000 100 - 100 = 1.43 * 100 - 100 = 143 - 100 = 43%
Thus, the boss's salary is 43% higher than the employee's salary.

By what percentage is one number less than the other?

To calculate how many percent one number is less than another, you need to subtract from 100 the ratio of the first number to the second, multiplied by 100.

Let's calculate how many percent the number 5 is less than the number 20:
100 - 5 20 100 = 100 - 0.25 100 = 100 - 25 = 75%
The number 5 is less than the number 20 by 75%.

For example, freelancer Oleg in January completed orders for 40,000 rubles, and in February for 30,000 rubles. Let's find by what percentage Oleg earned less in February than in January:
100 - 30000 40000 100 = 100 - 0.75 * 100 = 100 - 75 = 25%
Thus, in February Oleg earned 25% less than in January.

Find 100 percent

If number x this is p percent, then you can find 100 percent by multiplying the number x on the 100p

Finding 100% if 25% is 7:
7 · 100 25 = 7 4 = 28
If 25% equals 7, then 100% equals 28.

For example, Katya copies photos from her camera to her computer. 20% of photos were copied in 5 minutes. Let's find how much time the copying process takes:
5 · 100 20 = 5 5 = 25
We get that the process of copying all the photos takes 25 minutes.

Before proceeding to a direct description of the types of discounts and their economic evaluation, we should dwell on the principles of their application, the implementation of which should ensure the effectiveness of the entire system of discounts.

First, the use of the discount system should lead to a positive economic effect. That is, discounts should not be perceived as a necessary evil that companies have to put up with. On the contrary, they should serve at least to maintain the level of profitability, and better - to increase it.

Secondly, the discount provided should arouse real interest in the buyer and the desire to fulfill the agreed conditions.

Thirdly, the discount system should be simple and understandable to customers and employees of the company. The presence of a large number of different types of discounts in one system at the same time can create confusion and misunderstanding among the buyer and significantly complicate the work of the sales department.

Main types of discounts

Progressive discounts for large purchases

This is the most common type of discount. The company establishes their progressive scale depending on the volume of the consignment or the volume of purchases for a certain period. However, in most cases, such systems are drawn up intuitively and very often are not effective enough.

To calculate the scale of discounts, the principle of not reducing the profit level can serve - the profit at the discounted price and the new sales volume should be no less than at the initial values of the price and sales level.

Given this principle, you can derive a formula for calculating discounts.

where current margin is revenue minus variable costs for a manufacturing plant or purchase cost for trading companies. If a trading company has a large amount of its own variable costs, then they should also be added to the purchase price;
desired margin increase is an indicator of the desired margin growth in relation to the current level.

The use of source data by product category makes the formula easy to apply in practice, since the discount scale has to be developed entirely for product categories, and not for individual items.

There are two ways to apply the formula:

EXAMPLE 1

The client asks for an additional discount

Suppose a customer purchases a certain category of goods for the amount of 40,000 rubles every month, taking into account the 2% discount provided to the customer. That is, according to the price list, such a batch costs 40,816 rubles (40,000 rubles / (1-2% / 100%)). The average trade margin for this product category is 25%. Thus, the purchase price of the consignment in question is 32,653 rubles (40,816 rubles / (1 + 25% / 100%)), and the current margin is 7347 rubles (40,000-32,653).

So the customer is asking for a big discount. For example, 4% or 7%. What counter-conditions should the company offer in order to maintain the level of profit? For example, for a discount level of 7% or more, the company has set a desired margin increase of 1000 rubles compared to the previous level of 7347 rubles. Using the above formula, we calculate the required sales volume in monetary terms for each discount level (see Table 1).

Table 1. Calculation of the required sales volume

Index	Discount amount
Index	0 %	2 %	4 %	7 %	10 %
Desired margin increase

Required increase in sales volume relative to current sales
Price list price
Purchase cost

EXAMPLE 2

Development of a general scale of discounts

To do this, you need to do the following calculations:

For the option when the trade margin is 20%, we get the following table (see Table 2).

Table 2. Calculation of the scale of discounts

Index	Discount amount
Index	0 %	2 %	4 %	7 %	10 %
Desired margin increase
Required sales volume at a discount
Rounded discounted sales volume
Price list price
Purchase cost

Contract discounts

This group of discounts should motivate the client to fulfill such contractual conditions that are beneficial for the company. Contractual discounts may be due to the term of payment, a certain type of payment or currency, the purchase of a certain product line, etc.

To establish conditions by term of payment, currency of payment and by type of means of payment, the economic assessment can be bank interest, conversion costs and banking services, and for the line and grade, the costs of freezing working capital and other benefits from a complex order.

Thus, the company sets such conditions for the client, the fulfillment of which is interesting for the client and beneficial for the company. Conversely, it is possible to set margins on terms that are unfavorable to the company.

EXAMPLE 3

Discount due to payment term

The following scheme can serve as an example of setting conditions for the payment period. There is a base price for the goods when paid upon delivery. At the same time, it is possible to grant a delay to the client for 30 days or to receive an advance payment from the client for 30 days. If it is beneficial for the company to motivate the client to pay earlier, you can set a discount for prepayment and, conversely, a markup for deferred payment.
The comparison rate can be bank interest. Take for example 18% per annum or 1.5% per month. Thus, the company can set conditions slightly better than the bank rate (for example, a 2% discount for prepayment and a 2% markup for deferred payment) in order to make it interesting for the client to pay for the goods earlier.

EXAMPLE 4

Discount based on settlement currency

The clients of a company trading in auto parts for foreign cars had the opportunity to pay for goods with different types of cash (rubles, dollars and euros). But under the current system of payment, there was an abundance of dollars, there were not enough rubles, and the euro at that time had not yet received sufficient distribution.

Then a “currency flow map” was drawn up and analyzed — that is, it was estimated how much the company receives different currencies and how much there is a need to spend it, taking into account all the conditions for converting and the cost of banking services. After that, the conditions for accepting currency and the internal exchange rate were carefully changed in the direction of more favorable conditions from the company's point of view.

EXAMPLE 5

Discount due to a set of conditions

Often you can find a “retro bonus” scheme (payment of the discount amount at the end of the month, subject to a number of conditions). The total amount of the discount is made up of a set of conditions that the company needs to fulfill. For example:

for the implementation of the planned volume - 3%;
for timely payment - 3%;
for the selected line - 2%.

Thus, if all conditions are met, the client receives a total discount of 8%.

However, this scheme does not always work either. Sometimes clients (especially small ones) say: “Give me 3% now and I don’t need any more.” It is important not to forget the principle of discount attractiveness for the client and to keep track of what really arouses his interest.

The next important point of the contract is the terms of delivery of the goods. The company may provide for additional actions to encourage customers to comply with favorable conditions for it. For example, in the presence of a permanent fleet of vehicles, the seller should try to deliver goods with their own vehicles (within the limits of vehicle loading), since idle vehicles will somehow affect financial results. And a stable loading of the fleet can bring benefits both direct economic and indirect (in the form of convenience for customers).

The extra charge for the provision of an additional delivery service can be justified by the fact that its amount is somewhat less than the cost of an alternative delivery service when the client uses hired transport.

On the contrary, if the client has his own transport, he has the right to demand a discount. But in this case, the seller can set a discount slightly less than their own shipping costs.

Seasonal (holiday) discounts to redistribute demand

The use of seasonal discounts allows you to redistribute demand over time - to ensure uniform loading and reduce aggregate demand during peak periods.

Seasonal demand is a common situation in a company's limited production capacity, when during a peak period it cannot meet all requests, and during a recession it is forced to idle. In this case, discounts are designed to redistribute demand over time and encourage buyers to purchase goods before the onset of the season and, accordingly, reduce demand during peak periods.

Glossary

Switching costs are the costs that a customer will have to incur when switching to a new product or a new seller. Costs can be both monetary (loss of discount) and psychological (habit, convenience for the buyer). — Note. author.

Seasonal fluctuations can be both for a long time (for example, during the summer months or New Year's holidays), and for short periods - a week and a day. Then peak days and evening hours can be respectively. Therefore, some supermarkets provide discounts to pensioners when they make a purchase before 12 noon. An economic criterion for the effectiveness of such discounts can be an assessment of the benefits from the redistribution of demand and lost profits when peak demand is not met.

If a company purposefully prepares for an increase in purchasing activity, holiday discounts are sometimes applied, the main purpose of which is to revive trade and attract customers to their store during a period of predictable increase in purchasing activity.

Seasonal discounts for product liquidation

Another type of seasonal discounts are discounts to get rid of goods, the main task of which is to stimulate demand for the elimination of residues. If a company has not been able to sell all seasonal items during peak sales, then it has two options: store those leftovers until the next season, or provide discounts to possibly eliminate leftovers. Therefore, the economic assessment for calculating such discounts is the assessment of the cost of storing products. At the same time, both direct costs (mainly the use of occupied space) and indirect costs (risks of physical and moral aging of the goods, loss of presentation, etc.) should be taken into account. Thus, if the cost of storing goods is high, and the calculated discount is really able to attract a sufficient number of buyers, then the use of this type of discount is advisable.

Prevention of adverse tax consequences

When applying discounts, it is necessary to take into account the provisions of Article 40 of the Tax Code of the Russian Federation, which establishes the principles for determining the price of goods, works, services. As a general rule, for taxation purposes, the price of goods, works or services indicated by the parties to the transaction is accepted, and until proven otherwise, it is assumed that this price corresponds to the level of market prices. But it should be remembered that if the price deviates by more than 20% upwards or downwards from the level of prices applied by the taxpayer for identical (homogeneous) goods within a short period of time, the tax authorities can check the correctness of the application of transaction prices (subclause 4 paragraph 2 article 40 of the Tax Code of the Russian Federation). If a deviation is detected, they have the right to charge additional tax and penalties.

Therefore, if the maximum discount is 20% of the regular price level (if prices are kept at the average market level), then the tax authorities have no reason to find fault with the seller. If discounts of more than 20% are expected, then such actions must be explained by the fact that the discounts are due to the marketing policy of the taxpaying organization. Or seasonal and other fluctuations in demand. These factors must be taken into account by the tax authorities when calculating the market price. These and other circumstances listed in paragraph 3 of Article 40 of the Tax Code of the Russian Federation, the taxpayer has the right to refer to, protecting their interests.

However, such actions must be confirmed by appropriate documents. Without fail, they must be fixed in special internal documents. This may be an order or order of the head of the organization. In addition, an indication of the formation of the transaction price, taking into account discounts as part of the marketing policy, can also be reflected in the text of the contract for the sale of goods sold at a discount, in the invoice for payment for the goods. This is proof that the price of the goods is not underestimated due to other reasons.

Attracting new customers and retaining old ones

The main task of discount systems aimed at attracting new buyers is to form, in a certain period of time, such conditions that would ensure interest and encourage the buyer to contact this particular seller. Moreover, to achieve such a result, it is not necessary to reduce the price of all goods. It is enough to reduce it only by a few so-called “indicator” goods, the prices of which the buyer remembers and by which he judges the price level of the entire company.

Goods - "indicators" should occupy a small volume in the total mass of goods sold, since a price reduction for a large part of the range or for the "main" product can lead to significant economic losses. There can be no more than 3–5 such goods in each product category, and it is for them that the buyer must know the price level. Covering losses from lower prices for some goods should be carried out through the additional sale of other goods, for which the price may be too high.

After the company has managed to attract new customers, the next task is to retain them - the formation of such conditions under which the customer who made the first purchase will be interested in purchasing goods from this seller in the future. In this case, the ideal option can be considered a situation in which each subsequent purchase will increase this interest more and more. This problem can be quite successfully solved using a system of cumulative discounts: they must be significant for the buyer and must exceed the cost of switching when applying to another company.

Dealer discounts

A separate category of discounts are discounts for dealers, distributors, wholesalers, firms that participate in the product distribution system of the seller company. A rough economic estimate for dealer discounts can be a discount value that is approximately equal to the cost of services for the distribution of products (or it is slightly less than the cost of organizing your own promotion channel)*.

So, if you correctly develop and calculate the system of discounts, they will be economically beneficial both for the company itself and for the buyer. Moreover, the effect that the discount produces is measured not only by economic benefits. A company that provides a discount to its customers demonstrates care, respect and increased interest in them, which most often provokes their loyalty to the company. And customer loyalty is worth more than money.

* For more information about the pricing policy when organizing product distribution channels, see the article "Price for the distributor" in the last issue of the magazine "Sales bussines/Sales" (No. 11, 2005). — Note. editions.

Discounts that are too generous can lead to insufficient profits. In contrast, too small discounts, especially on the eve of the holidays, will lead to loss of the consumer. What is an effective discount and how to achieve it?

How to make discounts in the store correctly

To understand how to ensure the effectiveness of discounts, decide on the principles of application:
Discounts lead to a positive financial effect. Don't take discounts as evil. They serve not only to maintain profits, but, first of all, to increase.
The discount provided should be of interest to buyers. The system of discounts should be transparent and not cause difficulties and misunderstandings among buyers.

What kind of discount to make: the main types of discounts

1. Progressive discounts

Set a progressive scale, which depends on the volume of purchases and the consignment. To calculate the scale, keep in mind that the profit at the cost of the discounted product is not less than at the initial level of sales.

Calculation formula:

Under the value of "current margin" is taken revenue minus costs or the cost of the purchase. Desired margin increase refers to the desired increase. To calculate discounts, use the markup and margin of the product category. The category itself contains different commodity items.

The formula can be used in two cases:

1. The client asks for an additional discount, and the company decides what conditions to offer to maintain profits.

Consider an example:

If a client buys a product worth 40 thousand rubles each time with a 2% discount. Before the discount is given, such a product costs 40 thousand 816 rubles. The trade margin for goods is 25%. The purchase price for the goods is 32 thousand 653 rubles, the margin is 7 thousand 347 rubles.

Additional discount for the client - 4-7%, what counter conditions will help to keep the profit? To provide a 7% discount, the company set a margin growth of -1 thousand rubles. We consider the sales volume according to the above formula for each discount (Table 1).

Table 1. We calculate the required sales volume

2. General discount scale for customers of a specific category of goods.

For development, carry out the following calculations:

Set the volume of sales from which to start discounts. For example, 75 thousand rubles.

Set an acceptable margin for each discount.

Round up the final sales level.

Test the attractiveness of the discount scale for customers.

Consider how the indicators change with a trade margin of 20% (Table 2).

Table 2. Scale of discounts: calculations

2. Seasonal discounts

Seasonal discounts incentivize shoppers to shop during downturns, and also provide reduced demand during the peak period. In other words, discounts help redistribute demand.

Seasonal fluctuations can be adjusted both over a long period of time and over a short period such as a day or a week or even a time of day. In this regard, some stores set discounts for purchases at certain times. The effectiveness of such discounts is determined by the assessment of the benefits from lost profits and redistributed demand.
Holiday discounts are considered effective, the purpose of which is to increase sales at a time when buyers are especially active.

3. Liquidation of goods

This type of discount stimulates demand for the elimination of product balances. Otherwise, they will have to be stored until the next peak season. The economic benefit can be calculated by estimating the cost of storing the goods. If there are significant costs to storing the goods, and discounts can cover them, the liquidation of the goods is advisable.

Formation of discounts for new customers and retention of old ones

Discounts help attract new customers and keep old ones. The task of discounts is to interest the buyer and convince him to contact this particular seller. It is not necessary to give a discount on all products. The discount policy assumes that it is enough to reduce the cost for “indicative goods”, i.e. goods, the cost of which the buyer remembers and on their basis judges the pricing policy.

"Products-indicators" should not occupy a large volume in the range, so that price reductions do not lead to financial losses. It is possible to cover losses from lower prices by additional sales of other goods.

After attracting customers, the task is to keep them, to make them want to buy in this store again and again. The ideal situation is when each purchase is of increasing interest. There is a solution for this problem! For example, you can use a cumulative discount system.

If it is necessary for each individual customer to quickly calculate a discount depending on the volume of purchased products or a reduction in the grace period, use the discount calculator that can be downloaded.

It may seem to an experienced financier that the calculation of the discount does not require much explanation. But sometimes it's the simple calculations we deal with every day that take up our time and become sources of error. See the correct calculations, and download the discount policy, which is useful for any company.

Calculate the discount using the formula

Calculate the absolute amount of the discount when the percentage is known.
Calculation of the percentage of the discount given the known amount of the discount (or the amount after the discount has been deducted).

Calculate the discount amount using the formula:

Discount = Amount Before Discount × Discount Percentage

To calculate the discount percentage, use the formula:

Discount percentage = Discount amount / Amount before discount

Discount amount = Amount before discount - Amount after discount

Important! In the second calculation, remember that the division must be made by the amount before the discount is deducted, otherwise you will get a markup percentage as a result, which will cause an error. .

Discount Calculator

If you have no time to calculate the discount using the formula, use the calculator. For this:

Enter the initial data in the color-coded fields.
Get an instant calculation of the discount amount or discount percentage. .

What discounts are justified to provide customers

The financial service often has to calculate the maximum allowable discounts for different situations, for example:

when it is necessary to get rid of low-liquid goods;
the buyer is ready to purchase a large consignment of goods;
the buyer is willing to pay upfront.

The editors have prepared a material that will help you quickly calculate the amount of discounts for each of these cases. The recommendations will be useful for both manufacturing enterprises and companies specializing in the field of trade or services.