When forming a market price, it is customary to use one of the most accurate methods currently available to marketers - the method of comparable market prices. It can be used equally when determining the prices of a certain service, products, work.
How it works?
Pricing by the method of comparable market prices is based on calculations, during which a rationale is formed for why such a price tag is set for the service or product. To do this, deals are compared - some selected specific and others recognized by experts as comparable. A thorough analysis of the obtained indicators, a comparison of the values reveals a certain average level. It is his search - the goal of the method of comparable market prices. 44 Federal Law regulates this pricing method at the state level, introducing certain legal restrictions on the possibility of recognizing transactions as comparable, and on identifying optimal data for settlements. Such an interest in this technique on the part of the state is explained by the fact that NMCC is established by the method of comparable market prices.
In some cases, the situation is complicated by the fact that experts do not have information on transactions in which the same goods would appear. We have to focus on homogeneous products. If there are not only identical, but also homogeneous, it becomes very difficult to find an example of a method of comparable market prices, since this method is considered inapplicable. They follow a similar logic, avoiding it if there is no official data on transactions.
Features of the technique
The method of comparable market prices (market analysis) is to identify a profitable interval. It is this indicator that becomes the most important, all formulas of the method are aimed at its calculation. In the absence of the mentioned parameter or in case of incorrect calculation, the application of the described technique completely loses its effectiveness. The low quality method is characterized by the method of comparable market prices, when during the calculations the profitable interval was formed with violations, errors were made.
Another important concept is the range of market prices. This is an important economic unit that is calculated and justified by comparing different indicators. Together, the data gives access to the average analytical value of the price in the market. The interval is calculated in relation to a specific product, work, service. A correctly selected sample and a thorough comparison of indicators without rounding provide useful, informative, correct data on the market condition, the economic situation that dominates in the area under consideration. Using the justification of the method of comparable market prices, we can understand how relevant the goods or services in question are, how adequate the pricing policy of the companies providing them is. When calculating this interval, it is necessary to adhere to the established order and know a number of specific rules governing the described area of the economy.
Market Price Interval: Details
When compiling the interval, it is important to take into account the data that describe the state of the market at the moment close to the completion of the transaction that is being calculated. Obviously, a comparable trade is also selected from approximately the same time period.
The parameter obtained by the method of comparable market prices (market analysis) should be more or less close to the average values of the value of transactions in the market.When taking into account how much taxes should be paid during the transaction, they are repelled by the idea of compliance of the calculated parameters and indicators that are characteristic of the current economic situation. When choosing an underestimated value indicator for the correct calculation of taxes, you will have to take the minimum price. Also, a specific approach when applying the method of comparable market prices (market analysis) is necessary if the price is significantly higher than the average for the market. When calculating the taxation scheme, they take the highest permissible values and start from them already.
Market Price Interval: Calculation Features
Using the method of comparable market prices, the interval is expressed through such an exponential sample of values that are arranged in a convenient order for calculations, sorted by value. At the beginning of the interval - the smallest values, at the end - the maximum.
If you have data on a number of comparable transactions, you can resort to the method in question, starting with collecting information about those agreements, based on which you can identify price marks. In this case, the transactions will have to be sorted in ascending order, each having their own unique number to simplify orientation in the information field during the calculations. By calculating the minimum interval, all indicators are added up, divided by 4 and bring the result to an integer. This value is used to number the value. To calculate the smallest value, take the following sequence number. Upon receipt of the fractional indicator as a result of the division operation, the integer part is used as the basis.
Practical points
To justify the maximum value, calculating the interval of market prices, calculate the total sample amount, the resulting value is additionally multiplied by 0.75. The detected value must be used similar to the method described above.
An example of a calculation using the comparable market price method can be considered as follows:
Application features
The method of comparable market prices is to analyze the market situation to identify optimal indicators that are reasonable, but at the same time satisfying all parties to the transaction. If this technique is used to determine a comparable price for exchange products, then for calculations, the data placed in official open sources is taken as basic information. It is very important to focus only on material published in the prescribed manner. The indicators used in the calculations, extracted from it, will become the sources of the minimum, maximum value for transactions concluded, registered in a given time period.
If NMCC is calculated using the method of comparable market prices using data obtained from information, pricing, and statistical agencies, it will also be reasonable to take into account the largest, smallest indicators for those transactions that were made under similar conditions in the same time period. At the same time, this information is allowed to be taken into account, but its accounting is not a prerequisite for regulating the procedure and the correctness of calculations.
NMCC: what is the point?
The initial maximum value of the contract should be governed by the market situation, established only after a detailed analysis of the economic situation. The substantiation of NMCC becomes the most significant for companies working on government orders. This also applies to tenders, including specific areas. Analysts, calculating NMCC by the method of comparable market prices (an example is indicated above), predict what the purchase price will be. To do this, you have to carefully work out all the identical and close product groups.
Product groups: what is at stake
When choosing identical products for comparative analytics, you need to take into account only those market positions that have similar parameters of operation, quality, similar functions and technical values. It is also advisable to maintain uniformity in the manufacturer, the state where the product is manufactured. But the appearance may differ, however, within reason. An example of the method of comparable market prices of NMCC on cars: there are two personal cars produced by the same brand and equally equipped, but painted in different shades. The latter speaks about the difference in appearance, while the similarity of other aspects allows us to classify both units as a group of identical products.
When choosing products of a homogeneous group, one must remember that their parameters must be comparable with each other. The preference for sampling is best given to positions that have the same (as similar) set as possible. It is important to comply with the appropriate level of quality, the reputation of the manufacturer in the market, of the state where the product is produced. An example of the method of comparable market prices of NMCC for automobile tires may look as follows. Suppose there are two tires. They can be considered identical if both are designed for the same season (for example, winter), both studded and have the same technical parameters (size, speed, loads). These tires should be produced in one state, but with different brands represented by different trademarks on the market. At the same time, manufacturing standards should be the same for both products, as well as the materials from which they were made. For comparison, you need to choose manufacturers with a similar market reputation. This allows us to talk about the homogeneity of the group of studied goods.
It is important!
In the analysis, economists pay attention to the information that came from a potential supplier in the form of a commercial offer, confirmed in the prescribed manner. Such a proposal should contain a description of a specific commodity position, which is characterized by a trademark, characteristics, and other features that allow to identify the product. Only with a thorough analysis of official requests received can a potential partner formulate a conclusion that the proposed items belong to a group of similar products or identical. The correctness of this conclusion affects the accuracy of further calculations and the correct determination of NMCC.
Procedures used for market analysis
In order to obtain the largest possible amount of accurate information, the analyst must send inquiries to suppliers. From the order of the Ministry of Economic Development, published in 2013 under the number 567, it follows that five requests should be sent. This condition was disputed in 2015 during the arbitration court, and it was decided that the customer has the right, at his discretion, to decide how many requests need to be formed in order to get a correct idea about the NMCC.
The next stage is the publication of data in the EIS (a single database), obtaining a registry of contracts from the same source. The Ministry of Economy strongly recommends focusing on contract data, during which there was no need to recover a penalty for at least three years. In some cases, the price of the contract is increased relative to the originally set search parameters. This is determined by the order form. For example, when considering tenders, it is necessary to take the excess of the initial parameter by 10%, and during the auction a value is allowed, 13% more than planned. When studying the request for proposals, the cost can increase by 17%, a similar value describes the request for quotes. It is not necessary to adjust the initial parameters if only one supplier is found.
Only reliable data!
When calculating NMCC, experts should pay attention, among other things, to information available in an open form. These are various advertising offers and public offers, as well as stock quotes, catalogs, trading floors, reports showing statistics that are available to the general public. It will not be superfluous to analyze the information received from state and municipal structures. Finally, take into account the data provided by price, statistical and news agencies.
However, some data sources should not be taken into account when performing an analysis to calculate the NMCC. These include data from suppliers included in the register of dishonest companies, as well as from anonymous sources. Data is not credible unless detailed calculation is attached to it. Finally, economists do not need to pay attention to proposals that do not match the particular order.
We consider it right: attentiveness is the key to success
As follows from the rules for calculating NMCC, accurate and correct results can be obtained if the customer has at least three price offers provided by different suppliers. At the same time, the cost of production should not differ too much. If, for example, one company offers one piece of the position necessary for the buyer for one hundred rubles, and the other asks for a thousand for the same amount, such data is considered too heterogeneous, and therefore unacceptable for the calculation of NMCC. The customer will have to take into account the coefficient of variation. Normally, its indicator is no more than 33%.
Laws and restrictions
When concluding agreements with a supplier, the NMCC in the first place goes to municipal and state enterprises. The most important will be the ability to correctly calculate the initial maximum cost if the economist works in a company specializing in the purchase of products, works or some service. The 44th federal law, introduced to regulate this area of activity, introduces fairly clear restrictions on the activities of organizations and on the correctness of the design of these activities, at the same time, understanding it, especially for a novice, is not always easy. Initially, the law was adopted in 2013, but regularly updates, additions, making the already complicated process even more difficult.
The law differentiates how procurement can be planned, how to choose partners for cooperation and on the basis of which to conclude agreements, what information to indicate in them so that the transaction enters into legal force. Of course, the 44th law regulates how to calculate NMCC, how to negotiate with the customer and how to justify the selected value. It is indicated here that there are several calculation methods. In practice, they most often resort to the previously described, namely, comparing price offers in the current market.
Important aspects of the pricing method
When resorting to the specified methodology, it must be understood that for each individual counterparty it is necessary to analyze the market situation with the calculation of an adequate value of NMCC. At the same time, they always take into account similar services or products presented in an accessible market. The data used for calculations must be consistent with the terms of the transaction that the plans conclude with the supplier. Particular attention should be paid to information resources, studying (this attention is especially emphasized!) Only reliable sources.
If the customer is interested in using specific coefficients, indices, he must formally prove that there is a right to them. If successful, prices are recalculated. This is important to consider in the product parameters, in the conditions declared by the supplier. Of course, at the time the parties fulfill their obligations, this aspect also comes to the fore.
To summarize
For the correct calculation of the value of NMCC, it is necessary to provide analysts with access to relevant, accurate, reliable information, including various data published for the general public. This requires the analysis of reporting, statistics, public procurement pages, and other similar resources. It must be remembered that the right choice of information sources and the provision of a sufficient base for analytics is necessary for the correct result of comparative work, which will allow you to conclude a profitable contract and not violate the requirements established by applicable law.