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Pricing 1

The document discusses pricing details for a herbal mosquito repellent product. It states that the product will be introduced at Rs. 60/- with an 8% margin for wholesalers and 10% margin for retailers. It also provides pricing information for a competitor product and breaks down the manufacturing costs. The total investment for producing the herbal mosquito repellent is Rs. 50,00,000/- and the projected annual production is 255,500 units.

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Poulami Ghosh
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52 views2 pages

Pricing 1

The document discusses pricing details for a herbal mosquito repellent product. It states that the product will be introduced at Rs. 60/- with an 8% margin for wholesalers and 10% margin for retailers. It also provides pricing information for a competitor product and breaks down the manufacturing costs. The total investment for producing the herbal mosquito repellent is Rs. 50,00,000/- and the projected annual production is 255,500 units.

Uploaded by

Poulami Ghosh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Pricing

Price = Cost + Profit


The Herbal Mosquito Repellent Would be introduced in the market at a price of Rs.60/- A
margin of 8% would be kept for the wholesaler and a margin of 10% would be kept for the
retailer
Place
Our product “Assorted” would be launched in the national market (India) Rural Area

Market suggested retailer price 60/-

Retailer mark up price (10%) 6/-

Retailer Purchasing cost 54/-

Wholesaler Mark up price (8%) 4.32/-

Wholesaler purchasing cost 49.68

Manufacturers mark up price (10%) 4.968/-

Manufacturers cost 44.712/-

Total Investment 50,00,000/-

Total Production in one year 255,500/- (or as per the demand)

Our competitor (All out and good night) Price is approx. 72 to 78

Market suggested retailer price 72/- (For 45 days 5 Hours use in a day)

Retailer mark up price (6%) 4.32/-

Retailer Purchasing cost 67.68/-

Wholesaler Mark up price (5%) 3.384/-

Wholesaler purchasing cost 64.296/-

Manufacturers mark up price (10%) Assume 12.86/-

Manufacturers cost 51.436/- (Their advertisement cost is very high)

Manufacturing cost Explanation

Gum (50 GM) with labor (70 Days if 5 hours use in a day) 15/-
Plastic Boatel (Third Party If we order 10000) 3/-

Machine 8/-

Battery 8/-

Leveling 2/-

Packing 2/-

Government tax Approx. 2/-

Electricity and Rent Approx. 3/-

Employment (For sales promotion) and advertisement 4.7/-

Only Refile (Bottle and gum Price) 48/- (We have profit approx. 15%)

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