Page 317 - NEWNORMAL_ANIMATED

PRICING & ECONOMY

I emphasize again - please, never forget CZK / 3,60€. Converted to one 0.75l bottle, the
to include in the calculation formula a re- cost price will be CZK 67.50 / 2,70€.
asonable reward for yourself and your fa-
mily! IMPORTANT!
We divide the cost of individual items by We will make no mistake if we continue to
the number of hectares on which the grapes count on a uniform average price of grapes for
are grown. If the grapes are to be sold, a profit the entire winery in the next calculation, i.e.
margin must be added. The calculated price the weighted average of our own and purcha-
of grapes then enters into the below-stated sed grapes. It is the average price of the main
calculation of the price as a multiple of the raw material.
number of tons of grapes consumed and the We can also easily calculate the weighted
price per ton. Grapes purchased from external average price of wine from the cellar. It seems
suppliers belong to other direct material. So, that you are selling wines for 3, 7, 12, 25 and
we will use the price of 740€ per hectare for 50 euros or dollars. However, the sales will still
our own grapes in our further calculations. end up in one sum in the REVENUE item of the
The calculation of the cost price of wine will accounting.
again be based on the general calculation for- The price of wine in the entire cellar is
mula. We will work with the cost of the total a good guide for basic calculations. Of course,
amount of wine produced, which we then di- it would be more accurate if you could specify
vide by the number of liters of wine produced the different costs of wines aged in barrique
and get the cost price per liter. This formula barrels, special wines (straw, ice), etc.
includes the price of the finished cask or tank However, at the end of the economic calcu-
wine in the first year after harvest. If you let lation, you will again get to the same sum.
the wine mature for a long time, you need to Therefore, we will use the average price of
know how much money you have in your wine CZK 67.50 / 2,70€ in the next steps for bottled
inventories. wine calculations.
As mentioned above, the cost price is the
&$/&8/$7,21 ,7(0 &267
minimum price that covers all costs but
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2WKHU GLUHFW PDWHULDO Ϯϭ ϲϬϬ͕ϬϬ Φ a markup, popularly called a “margin”.
7RWDO GLUHFW PDWHULDO FRVWV ZLQH ϮϮϮ ϰϴϭ͕ϲϬ Φ Profit is defined as the positive difference
2WKHU GLUHFW FRVWV DQG VHUYLFHV ϯ ϲϬϬ͕ϬϬ Φ between revenues and expenses.
7RWDO ZDJH DQG SHUVRQQHO FRVWV ϮϬϬ ϬϬϬ͕ϬϬ Φ Profit has several functions and we should
'HSUHFLDWLRQ RI WDQJLEOH DVVHWV GLUHFW ϰϬ ϬϬϬ͕ϬϬ Φ take them into account when creating a price.
&RVWV RI DQFLOODU\ DFWLYLWLHV ϰ ϬϬϬ͕ϬϬ Φ From the profit, we pay taxes, loan repayments,
$GPLQLVWUDWLYH RYHUKHDGV ϯϮ ϬϬϬ͕ϬϬ Φ the share of the profit motivates owners and
6DOHV FRVWV ϳϰ ϬϬϬ͕ϬϬ Φ employees to perform better, the profit should
7RWDO FRVWV ϱϳϲ Ϭϴϭ͕ϲϬ Φ be used to finance most investments, the pro-
3URGXFWLRQ OLWHUV ϭϲϬϬϬϬ fit should allow us to create reserves for unex-
&RVW SHU XQLW RI SURGXFWLRQ OLWHU ϯ͕ϲϬ Φ
pected events and crises.
This model example is also loosely based on When creating a price for a customer, we
the Methodology of Calculations of Revenues should choose a suitable pricing method in
and Costs in Agriculture, the author of which is accordance with our business objectives.
Jana Poláčková et al.
The above example shows that the cost pri-
ce per liter of wine for the entire winery is 90 See the spreadsheet on the next page
317