How to calculate maximum retail price of a product in multi-level marketing?
If you are thinking to start MLM marketing or direct marketing company, then fixing maximum retail price is one of the critical and essential step. In this article, we will discuss about how to fix mrp for your products. Read : How you can start Multi-level marketing company? Here we are taking an example of any product at which you provide five level compensations/commissions. Suppose actual manufacturing cost for a product (including tax, transportation, packaging etc.) is 250/-. Now calculate cost you have bear for providing compensation to 5 levels. Suppose you are providing 5 Level compensations as follow: First Level: 20% Second Level: 10% Third Level: 5% Fourth Level: 3% Fifth Level: 1.5% Compensation is provided at DP/PV basis. Now add your margin in product included office expenses, rent, office staff etc. A product MRP shouldn’t be as low as it can’t pay company’s bill or not as high as people have think before purchasing it. Suppose you have manufactured 10