Currently, many organizations are forced to sell goods at a price lower than the purchase price. Some accountants doubt the legality of such actions. Read about the tax consequences of such transactions in the material prepared by specialists of the 1C:Consulting.Standard project.

The basis for writing the material was a question received at the consultation line of the project "1C: Consulting. Standard":

Russian legislation does not contain a prohibition on selling goods at a price lower than the purchase price. Therefore, of course, you can sell this product for 600,000 rubles.

But in this case, you should keep in mind the possibility of adverse tax consequences.

1. Charge of lack of a reasonable business purpose.

   Referring to the unprofitability of the transaction, the inspectors say about the absence in the actions of the taxpayer reasonable business purpose and about their receipt unjustified tax benefit in the form of illegal VAT refund from the budget. At the same time they try challenge the right to deduct input tax for this product. And in this case, judges support controllers quite often.

   For example, the FAS of the East Siberian District, in resolution dated January 17, 2007 No. A33-5877/05-F02-7258/06-S1 in case No. A33-5877/05, supported the tax authorities, indicating that the transactions performed by the taxpayer were not economically feasible, because the purchase price of the goods was higher than the selling price for export.

   In the decision of the Federal Antimonopoly Service of the Volga Region dated March 29, 2006 in case No. A12-27621/05-C21, the judges came to the conclusion that there was no reasonable business purpose, since the transactions were obviously unprofitable for the taxpayer.

   And the Federal Antimonopoly Service of the West Siberian District refused to deduct VAT from the taxpayer, since the purchase price of the goods was inflated seven times, and the subsequent the sale price did not cover all the taxpayer's costs. The court also noted that such business transactions are not carried out unless otherwise hidden behind them(resolution dated August 10, 2005 in case No. F04-5166/2005(13823-A46-18)).

   Fortunately, there are also plenty of examples of court decisions in favor of taxpayers in arbitration practice. For example, in the Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated June 20, 2006 No. 3946/06 in case No. A40-19572/04-14-138, the arbitrators concluded that the fact of sale of goods for export at a price that is lower than the purchase price goods from a Russian supplier, in itself, without connection with other circumstances of a particular case, cannot indicate bad faith of the company and be considered as an objective sign of bad faith.

   Similar conclusions can be found in the decisions of the FAS Moscow District dated March 11, 2008 No. KA-A40/1209-08 in case No. A40-35330/07-99-146, the FAS Volga District dated January 15, 2008 in case No. A65-1289/07- SA3-48, FAS of the Ural District dated June 13, 2007 No. F09-4305/07-C2 in case No. A07-28178/06, FAS of the Central District dated February 19, 2008 in case No. A35-1831/07-C18.

   In the Resolutions of the Presidium of the Supreme Arbitration Court of the Russian Federation dated February 28, 2006 No. 13234/05 in case No. A40-245/05-117-4 and dated February 28, 2006 No. 12669/05 in case No. A40-3898/05-118-48 it is stated that the fact Selling a product at a price lower than the purchase price does not indicate the absence of a reasonable business purpose.

   And the Federal Antimonopoly Service of the Ural District, in its resolution dated February 11, 2008 No. F09-208/08-S2 in case No. A71-4398/07, stated that on its own the fact that there is no profit does not indicate bad faith on the part of the taxpayer, as well as the lack of real economic effect from relationships with these suppliers.

   The judges also point out that the right to apply tax deductions is not dependent on profit, which the taxpayer received. In accordance with Art. 2 Civil Code of the Russian Federation entrepreneurial activity is independent and is carried out at its own risk, that is, as a result, the organization’s activities may turn out to be both profitable and unprofitable (resolution of the Federal Antimonopoly Service of the Moscow District dated January 21, 2008 No. KA-A40/12666-07 in case No. A40-67664/06-75- 390).

   Similar conclusions are contained in the resolution of the Federal Antimonopoly Service of the Moscow District dated August 14, 2008 No. KA-A40/6296-08 in case No. A40-59005/07-129-351. The court rejected the inspector’s argument that the taxpayer’s activities were unprofitable, pointing out that this fact is not a basis for refusing a VAT refund, since Current legislation does not link the right to apply a deduction with the presence of profit or loss, that is, with the profitability of transactions.

   Another example from arbitration practice. In our opinion, it may be useful in the situation under consideration. This is the resolution of the Federal Antimonopoly Service of the Central District dated 06/04/2008 in case No. A54-2364/2007С21. In making its decision, the court rejected the tax authority’s argument that the transaction was unprofitable and indicated that the taxpayer sold the goods at a price lower than the purchase price due to a decrease in its quality. Of course, when using this argument, the taxpayer must be prepared to confirm the fact of a decrease in the quality of the goods.

2. Tax authorities control prices to ensure their compliance with market prices.

   According to paragraph 1 of Article 40 of the Tax Code of the Russian Federation, for tax purposes, the price of goods, work or services indicated by the parties to the transaction is accepted. Until proven otherwise, it is assumed that this price corresponds to the level of market prices.

   Tax authorities have the right to check the correctness of application of prices for transactions only in the following cases (clause 2 of article 40 of the Tax Code of the Russian Federation):

   1. between interdependent persons;
   2. on commodity exchange (barter) transactions;
   3. when making foreign trade transactions;
   4. if there is a deviation of more than 20% upward or downward from the level of prices used by the taxpayer for identical (homogeneous) goods (works, services) within a short period of time.

   If the price of a product differs from the market price by more than 20%, the tax authorities have the right to check the correctness of the application of prices and make a reasoned decision on additional tax and penalties, calculated in such a way as if the results of this transaction were assessed based on the application of market prices for the corresponding goods (clauses 2 and 3 of Article 40 of the Tax Code of the Russian Federation).

   At the same time, Art. 40 of the Tax Code of the Russian Federation contains the principles for determining market prices. Note that according to paragraph 3 of Article 40 of the Tax Code of the Russian Federation, when determining the market price discounts may be taken into account caused by:

   • seasonal and other fluctuations consumer demand for goods (works, services);
   • loss of quality or other consumer properties of goods;
   • expiration (approximation of the expiration date) of the shelf life or sale of goods;
   • marketing policy, including when promoting new products that have no analogues to markets, as well as when promoting goods (works, services) to new markets;
   • implementation of experimental models and samples of goods in order to familiarize consumers with them.

   In this case, if, taking into account the provisions of Article 40 of the Tax Code of the Russian Federation, the tax authorities come to a reasonable conclusion that the price of the goods applied by the taxpayer deviates from the market price by more than 20%, they have the right to assess additional taxes based on market prices. In this case, both VAT and income tax will be additionally charged, as well as corresponding penalties for these taxes.

   Pay attention! When applying Article 40 of the Tax Code of the Russian Federation, the disputed price must be compared specifically with market prices for identical (similar) goods. Comparison with the purchase price of goods (with the cost of products, works, services) is not allowed. This has been brought to the attention of the Supreme Arbitration Court of the Russian Federation more than once. So, in Information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated March 17, 2003 No. 71 (clause 4), the judges pointed out the invalidity of the tax authority’s decision to assess additional taxes under Article 40 of the Tax Code of the Russian Federation for the reason that the tax authority, during the audit, did not examine the issue of the level of deviation of transaction prices from market prices . At the same time market prices were not set at all, and for the purpose of recalculating income tax the cost of services indicator was used(services were sold at prices below cost).

   Not long ago, the highest judicial body confirmed its point of view regarding this issue (see Determination of the Supreme Arbitration Court of the Russian Federation dated May 6, 2008 No. 5849/08). In making the decision to assess additional value added tax, penalties and fines to the company, the inspectorate proceeded from the fact that, By selling goods below the purchase price, the company operates at a loss. The judges did not take into account the tax authority’s argument about lowering prices below cost, since the issue of establishing the market price of goods was not investigated by the inspectorate.

Good afternoon.

The product must be sold to the consumer at the price indicated on the price tag.

Clause 1 of Article 10 of the Law “On Protection of Consumer Rights” states: “the manufacturer (performer, seller) is obliged to promptly provide the consumer with the necessary and reliable information about goods (works, services), ensuring the possibility of their the right choice" Paragraph 2 of the same article adds that the price of the product in rubles is an integral part of this information.
- in the Civil Code of the Russian Federation there is such a concept as an offer, i.e. documented proposal. In stores, the price tag is precisely a public offer, and the seller is obliged to sell you the product exactly at the price indicated in this offer indicated.

Tell him that you will ask to sell you the goods at exactly the price stated (on the price tag).
Remind the store administrator of this and demand that the violation of the law be immediately corrected, i.e. sell you a product at the price indicated on the price tag. You can “scare” them by saying that you will now call Rospotrebnadzor and UBEP (Department for Combating Economic Crimes).
In addition, you can defend your case by contacting Rospotrebnadzor: you need to find witnesses who can confirm your words. These could be your friends or relatives who came to the store with you. You can take a photo of this price tag. If you can add the date and time to the frame, it will be even better. You can place the switched-on mobile phone against the price tag (so that the date and time are visible) and take a photo. Request a complaint book and be sure to leave a record of what happened in it. Write in detail what you bought, when, what the price was on the price tag, what the price was on the receipt. In your complaint, request a written response from the store administration to your appeal. It is this answer that will serve as evidence for Rospotrebnadzor.

Contact your local Rospotrebnadzor office with an application drawn up in duplicate. Please attach to your application the response from the store to your complaint, as well as a photo of the price tag taken in the store and a receipt.

As a result of an inspection based on your complaint, Rospotrebnadzor may fine the store.
Responsibility of the store.

Article 14.7. Consumer fraud

Measuring, weighing, calculating, misleading regarding consumer properties, quality of goods (work, services) or other deception of consumers, except for the cases provided for in Part 1 of Article 14.33 of this Code, in organizations selling goods, performing work or providing services to the public , as well as citizens registered as individual entrepreneurs in the field of trade (services), as well as by citizens working for individual entrepreneurs - entails the imposition of an administrative fine on citizens in the amount of one thousand to two thousand rubles; on officials- from one thousand to two thousand rubles; on legal entities- from ten thousand to twenty thousand rubles.

Article 14.8. Violation of other consumer rights

1. Violation of the consumer’s right to receive necessary and reliable information about the product (work, service) being sold, about the manufacturer, about the seller, about the performer and about the mode of their work -

entails a warning or the imposition of an administrative fine on officials in the amount of five hundred to one thousand rubles; for legal entities - from five thousand to ten thousand rubles.

How can selling goods under a commission agreement be beneficial? To whom and in what cases does it make sense to choose it? How to formalize a commission correctly and to the mutual satisfaction of the parties? How it is done commission trading scheme, if a commission agreement is concluded between organizations that apply different taxation regimes? We will answer these and other questions in our article.

It is convenient to trade consignment goods in the MyWarehouse service. In it you can accept goods for sale with a commission agreement, keep records of them, automatically generate a report to the consignor after the sale, look at profitability, and issue a return if the product is not sold. and try it now: it's free!

If you are doing retail trade and you have found a supplier who agrees to give you the goods for sale under a commission agreement, you are in luck. And you’re especially lucky if you’re just starting out in business. The law allows money to be given for goods purchased under a commission agreement after it has been sold. That is, a commission trading scheme allows you to start working without large investments and without special risks.

If you produce a product or purchase it in large quantities for subsequent retail sale at different points, then a commission trading scheme can also be beneficial for you. At a minimum, this will increase the sales market. Some small store, located in a place where you yourself would not work, can quickly sell out goods that are not sold in your traditional outlets. At the same time, the store may not be able to buy a batch of such goods, but it will gladly accept it on commission.

The commission trading scheme is also beneficial because it makes it easier to process the return of goods than under a sales contract. If the product was purchased under the “purchase and sale” scheme, then in order to return it from the store back to the supplier, it is necessary to carry out a reverse sale. This creates problems in terms of taxation - when one of the parties to the transaction does not pay VAT, the second loses money because it cannot deduct VAT. If the delivery of goods is formalized under a commission agreement, this problem does not arise. The intermediary simply writes off the goods from off-balance sheet accounting and returns them to the supplier. However, when returning goods taken on consignment, there are some subtleties, and we will return to them in this material.

How commission trading is processed

In a simplified form, this diagram looks like this. The supplier (principal) gives his goods for sale to an intermediary (commission agent). In this case, the ownership of the goods does not pass to the latter. The commission agent sells the goods to the buyer, acting on his own behalf, but at the expense of the principal. As soon as the goods are sold, the principal ceases to be its owner. The commission agent reports to the supplier, gives him the proceeds for the goods and receives his remuneration.

So, how to arrange a commission correctly? Let’s say a certain company is going to sell a product to a store. First of all, the supplier and the store draw up a commission agreement, which states which of them is the commission agent, which is the principal, and also indicates that the first, on behalf of the second, will sell goods for a fee. It is also better to specify the amount of remuneration in the contract. This can be either a fixed amount for each product sold, or a certain percentage of sales. Law, namely, Article 51 Civil Code RF, obliges the commission agent to report to the committent on sales. The deadlines for submitting the report are not regulated, but it is also better to write them down in advance. A commission agreement can be concluded for a specific period or be indefinite. Entrepreneurs themselves also decide whether to indicate the territory for its implementation. A sample commission agreement can be downloaded from our library of document forms.

The commission agreement has been concluded. What's next? Then the goods are transferred to the store, which is accompanied by an act of acceptance and transfer of goods for commission and a TORG-12 invoice. You can download a sample transfer and acceptance certificate, as well as an invoice, on our website. An act of acceptance and transfer of goods for commission is required if this is specified in the contract. If there is no such condition, then an invoice is sufficient.

The shipment of goods has arrived safely at the store, and the commission agent begins selling. By law, the sale of goods must begin no later than the next day after its acceptance. After a certain quantity has been sold, or the reporting period specified in the contract has passed, the store draws up a commission agent’s report. It states how many units of the product were sold, at what price and what the reward amount was. As we wrote above, it is better to stipulate the deadlines for submitting the report in the contract, although this is not required by law. You can agree to provide it every week or every month. We have a sample commissioner's report on our website.

In addition to the report, it is recommended to draw up and sign an agreement on the provision of services between the parties. After all, by making transactions on behalf of the principal, the commission agent provides him with a service. A document is being drawn up about this. The amount in the act is the amount of the commission agent's remuneration for the reporting period.

Along with the report, the intermediary transfers the proceeds to the supplier and retains his commission. Another option is also possible when the committent takes all the proceeds and only then transfers the remuneration to the commission agent. Then the cooperation continues or ends.

If the principal is not satisfied with the commission agent’s report in any way, he must report this within 30 days from the date of receipt of the document. However, this period can be changed with the help of a preliminary agreement of the parties.

Automation greatly simplifies the commission trading process. The MoySklad service offers the optimal solution for both the principal and the commission agent. In the system itself, you can create a commission agreement, take into account the shipment and acceptance of goods, and record sales consignment goods, as well as automatically generate commission agent reports. At the same time, in all created forms and reports, revenue for goods sold, commission agent's remuneration, VAT and other necessary amounts are instantly calculated.

Now let's see what the law tells us about special cases.

The commission agent sold the goods more expensive or cheaper than expected

Let's say the goods were selling so well that the store decided to raise prices on them. In this case, the commission agent managed to obtain additional benefits, which, by law, he must equally share with the principal. Unless, of course, other conditions are provided for in the contract. And here you need to pay attention to one important detail regarding the processing and payment of this money. According to the letter of the Ministry of Finance of Russia dated June 5, 2008 No. 03-03-06/1/347, before part of the profit is paid to the commission agent, the committent must display this entire amount in income that is subject to income tax. And only after that accrue what is due to the commission agent.

If for some reason the goods were not sold at the agreed price, and the store reduced it, then there are two possible scenarios.

1. The store proved to the consignor that it did not have the opportunity to sell the goods at a higher price, and this move prevented even greater losses. In this case, the commission agent will not be required to return the difference.
2. The store failed to prove that the price reduction was a necessary step. Then, alas, the commission agent will have to compensate the supplier for the loss.

By the way, it is not forbidden to include these cases in the commission agreement. In addition, you can add conditions to it that, before changing prices, the commission agent must ask permission from the principal.

The contract was not fulfilled

Let’s say that part of the goods that the principal delivered to the store turned out to be defective, or the agreed quantity of goods was not delivered, or for some other reason the commission agreement cannot be fulfilled due to the fault of the supplier. In this case, the law requires the principal to still pay the commission agent remuneration, as well as reimburse expenses. If the commission agreement cannot be executed due to the fault of the store, then, in turn, it will have to compensate the principal for damages.

Subcommission

Let's imagine that the store has found another profitable point of sale of goods, which is managed by another company. In this case, he has the right to conclude a subcommission agreement with this company. Then the commission agent is responsible for the actions of the sub-commission agent to his principal, and for the second store he himself becomes the principal. And a few important notes. Subcommission is possible unless otherwise specified in the commission agreement. In this case, the principal does not have the right to enter into relations with the subcommissioner, unless, again, otherwise provided by agreement of the parties.

The commission agent did not sell a single product during the reporting period

If all the goods remain in the warehouses and shelves of the store, the store has the right to return them to the consignor. The return of the goods, as well as its receipt, is issued with a TORG-12 invoice.

The trade management service MySklad will help to significantly facilitate the process of returning goods from the commission agent to the consignor. The system has special forms in which returns are registered, and the entered data is automatically transferred to all reports that are related to the execution of the commission agreement.

Return of goods to the commission agent from the buyer

Let’s say that a retail buyer wants to return an item for some reason.

Considering that, when selling goods to a client, the commission agent, on his own behalf, entered into a sales contract with him, then he formalizes the refusal of this transaction.

If the buyer returns the goods due to detected defects, responsibility for them must be distributed between the commission agent and the consignor. If the goods were damaged due to the fault of the store, then the buyer will reimburse the costs. And if it turns out that the supplier is at fault, the commission agent will be entitled to reimbursement of expenses and remuneration.

The goods can be returned before the commission agent's report is signed by the parties, or after. In the first case, the intermediary makes an entry in the report for the amount of the return with a minus sign. In the second, the wholesale buyer, returning the goods, issues an invoice in the name of the commission agent. If final buyer- retail, then he must write a statement to return the goods. After this, the commission agent returns the goods to the consignor, accompanied by a return note in his name, as well as an invoice. Based on these documents, the principal will be able to reduce his VAT payable.

Invoices for commission trading

Invoices for commission trade in retail

In our example, where the commission agent is a store, the latter does not issue invoices to customers, since in retail trade this document replaces a cash receipt with the VAT amount highlighted on a separate line. The principal also does not issue invoices to the commission agent. But at the same time, the store issues an invoice to the principal for the amount of its remuneration based on the results of the reporting period.

The law does not oblige us retail store, trading under a commission agreement, keep a journal of invoices.

Indicators of CCP control tapes (only indicators, not the tapes themselves), as well as copies of the tapes, are transferred to the committent along with the commission agent’s report, and the committent registers them in his sales book in order to charge VAT on the cost of goods sold.

Moreover, if a store, in addition to the principal’s goods, also sells its own goods, then accounting for these goods must be separate. With the help of the MySklad trading program you can easily fulfill this requirement. The program shows the commission agent how many of his own goods and how many of the goods received under the commission agreement. The principal sees in the system how much of his goods are on sale and by whom.

Invoices for wholesale commission trade

Now let’s consider a situation where a commission agent sells goods in bulk on behalf of the principal, and both are VAT payers. In this case, invoices are mandatory accounting documents for them.

Since, under the terms of the agreement, the commission agent makes transactions with third parties on his own behalf, he also issues all invoices on his own behalf. The document number is assigned in accordance with the chronology of the commission agent. The invoice must be written in two copies. One must be handed over to the buyer, the second must be filed in the invoice journal. In this case, the invoice for the sale of consignment goods does not need to be registered in the sales book of the commission agent.

And the principal issues and enters in his sales book an invoice addressed to the commission agent, already numbered in accordance with his chronology. This document is not recorded in the intermediary's purchase book.

In this case, the indicators of the invoice that the commission agent issues to the buyer are reflected in the invoice, which is issued and recorded in its sales book by the supplier. The principal must also write out two copies - one to hand over to the commission agent, and the second to keep in his journal of registration of issued invoices.

The document received from the principal is filed by the commission agent in the journal of received invoices.

Based on the signed report and the corresponding act, the commission agent issues a separate invoice to the principal for the amount of his remuneration for the reporting period. This document is registered with the commission agent in the sales book, and with the committent - in the purchase book.

If the commission agent sells the supplier's goods to the buyer at the same time as his own goods, then the buyer can be issued a single invoice for the specified goods.

More information about issuing invoices for commission trading can be found in the letter of the Ministry of Taxes and Taxes of Russia dated May 21, 2001 No. VG-6-03/404.

Commission agent on the simplified tax system - committent on the simplified tax system

If the commission agreement was concluded by companies, each of which applies the simplified taxation regime (STS), then the commission agent, if questions arise about how to calculate taxes, must refer to Article 251 of the Tax Code of the Russian Federation. It directly states that when determining the tax base of a commission agent, property and funds received by him in connection with the fulfillment of obligations under a commission agreement are not taken into account as income. Income received to reimburse expenses incurred for the principal is also not taken into account. That is, only commission fees are considered income. Accordingly, revenue for goods sold is not counted as income. If the principal on the simplified tax system compensates the commission agent on the simplified tax system for any expenses, this money is also not subject to tax.

The date of receipt of income from the “simplified” intermediary is the date of receipt of remuneration from the principal into his account. If, under the terms of the contract, the commission agent withholds his remuneration from funds received from buyers, then the date of receipt of income is considered the day the money is received at the cash desk. It does not matter that the report may not have been signed yet, since advances are also included in the income of companies under the simplified tax system.

Expenses are recognized only after they are actually paid. Moreover, those expenses that are legally reimbursed by the principal (for example, for renting a warehouse where the goods are stored) are not considered expenses of the commission agent.

As for the principal, according to the letter of the Ministry of Finance No. 03-11-11/16941 dated May 15, 2013, his income is the entire amount received from the sale of goods, including commissions. Yes, in the scheme “commission agent on the simplified tax system - principal on the simplified tax system,” the remuneration paid by the principal, alas, cannot be attributed to his expenses, and tax will have to be paid on it. But! If the commission agent withholds his commission before transferring funds to the principal, the income will legally be equal to the amount that was actually received into the supplier's account. This means that if the committing company is on the simplified tax system, then it is better to specify exactly this option in the contract.

The day of receipt of income is the moment of receipt of funds to the current account or to the supplier's cash desk.

The principal under the simplified tax system is not obliged to issue an invoice for his goods, because The responsibility for drawing up this document rests only with the VAT payer.

Commission agent on the simplified tax system - principal on the OSNO

If the commission agent trades wholesale and is at the same time a “simplistic” person, and the committent works for common system taxation, the intermediary will have to issue invoices. The fact is that in fact, the seller to third parties is the principal under OSNO, and not the commission agent under the simplified tax system, therefore the intermediary must calculate value added tax for the supplier and present an invoice to the buyer. The scheme is the same as what we wrote about above. The commission agent makes two copies of the document, one of which is issued to the buyer, and the second is filed in the journal of issued invoices, without registering it in the sales book. The indicators of these documents are reflected in the invoices that the committent issues to the commission agent and registers in his sales book.

And let us remind you that in retail trade, the invoice is replaced by a cash receipt with the VAT amount highlighted on a separate line.

The supplier reflects the received revenue based on the received report. Therefore, in the case where the commission agent is on the simplified tax system, and the principal is on the OSNO, it is important in the contract to reflect the procedure and timing of its provision. If it arrives later deadline, then the supplier will still have to pay VAT on time.

The intermediary does not issue an invoice for the commission to the principal, since the commission agent's remuneration in the simplified form is not subject to VAT.

In the opposite situation, when the principal is on the simplified tax system, and the commission agent is on the OSNO, the intermediary should not issue an invoice to the buyers, because the seller is in fact the supplier, and he is exempt from VAT.

Don't know what price to set for your product or product so that it attracts customers?

Most likely, you have heard that the numbers on price tags in stores (including on websites) directly affect purchases. The cost of your product can either repel or entice more buyers. And the point is not at all whether it is expensive or cheap, but whether you use these little psychological tricks for the price.

Which ones exactly?

5 price chips that sell:

1. Use round numbers

It is in retail that it has become very popular not to round numbers.

Remember, when you go to the supermarket, what prices do you see there?

Yes, that's right, a price tag ending in 0.99. Stores use this technique to make the customer feel that he is buying a product at a lower price.

But as practice shows, more than half of clients no longer respond to such a marketing ploy. In addition, statistics show that buyers like round numbers more.

Surveys have shown that 57% of clients prefer round sums(eg $4.00) and 4% prefer half amounts (eg $4.50).

Clients' sympathy for round numbers is explained by the fact that such symbols are perceived as something safe and reliable. This naturally leads to .

2. Use the Anchor Effect

It is also called the anchoring effect. The bottom line is that the perception of the amount depends on which number (large or small) was shown earlier.

That is, if at first you were shown a large number, then you obviously expect that the next number will also be large. If it’s small, expect it to be small too.

How can this be used in sales?

Show the buyer a high price. Perhaps it was deliberately inflated so that the “anchor effect” would work and the client would be able to evaluate the benefits of the next lower price.

Using such a trick, you create the illusion that he is purchasing a product at a lower price and more profitable. There is one rule - the most expensive product is located at the beginning of the list, and then - in descending order.

Here it is:

3. Don't be afraid to charge high prices.

Low sales are not always a consequence of high product prices. Much more often the question is: How high quality and valuable is your product for the buyer?.

Customers complain about prices being too high in two main ways::

• if there is no sufficient material base to purchase products;
• the buyer does not feel .

In the second case, this is your mistake.

For example, someone will say that "Ferrari is too expensive" or "It's really too expensive." The key phrase is “too expensive.” Expensive does not mean that potential client does not want and will not buy the product. People are addicted to expensive things. After all, they are the confirmation of social status.

Often, when buying this or that thing, a person has to give up something. Therefore, you need to justify the high price of the product so that the client understands the benefits of the product, and the purchase is truly justified.

But is this the audience segment you are targeting?

Your main task is increase the significance of the product in the eyes of a potential buyer. And then he will be willing to actually pay you more

4. Make the product more expensive

The price of a product is determined by its significance and value.

Does more expensive wine really taste better?

If you ask me, I think so. But on the condition that the more expensive wine is actually better.

The cost of wine cannot change its original taste, right?

The fact that we make the price higher will not change the composition of the product, and therefore its taste. But our psychology works differently.

One day I visited the tasting room and saw this picture. Imagine 2 identical bottles of wine, but with different price tags. People try it and experience different taste qualities. Wine that had a higher price seemed to taste better to them.

The cost affected their perception of taste!

More high price creates the illusion of value of the product. This method of pricing is called “prestige”. It's being used . This is the case when higher prices affect the psychological perception of the client, creating the illusion of value.

5. Get rid of banknotes

Any banknotes create an association of spending money.

When a client sees a banknote, he feels upset about the upcoming expenses. The buyer perceives prices visually, which means that when he sees a banknote, he receives more detailed information about the price.

You can remove banknotes, or you can simply make them smaller and less noticeable.

Conclusion

A customer who makes a purchase always wants to feel important.

The right approach to pricing will give you not only competitive advantage, but will also allow the buyer to feel the value of the product.

Use the above psychological techniques when setting prices and you will see positive results immediately. Your profits will increase and your customers will be satisfied.

Please like if it was helpful! This is a clear signal to us that you are interested in learning even more about buyer psychology and an effective sales process.

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