Aleksandr Grachev

PM Notes / Note №3 / Product Price Structure

Product Price Structure

Product price setting is an important part in the life of a product, and I have to say, there are a lot of important processes that make the big picture work.

Everything goes down to planning, analysis, preparation and execution.

I will be covering this process in my notes and will get to marketing soon=)

Plan->Budget->Execute->Check=Profit

Below you may see an example of a product price structure.

This example covers 1 unit sold from a foreign company to a partner located in Russia.

P5 Price = NS (Net sales amount) the company receives for selling 1 unit.

MP% - 36% would be a good level of MP%, if for example all your expenses are 20%. This would mean your OP is 10%. See #note2 for ★ Financial stuff / P&L (Profit & Loss)

I think the rest of the structure is visible on the chart below, but I will go into details in my future notes.

Tag along, take care and see you soon!

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Aleksandr Grachev
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Привет. Канал с Автовским блогом продукт менеджера "PM Notes" на английском языке. Присоединяйся https://t.me/lightonus

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