What is the recommended basis for pricing NAF resale merchandise?

The recommended basis for pricing Non-Appropriated Fund (NAF) resale merchandise is primarily focused on the ability to cover costs and sustain operations. Setting prices on a break-even basis ensures that all expenses associated with the merchandise—such as procurement, storage, and operation costs—are adequately met. This method helps maintain financial stability for NAF activities, ensuring that they do not incur continual losses.

In this context, a break-even approach allows the organization to consider the total costs involved in selling a product without necessarily aiming for significant profit margins, which may be the focus in more traditional retail environments. For NAF, the objective often includes providing services at low costs to beneficiaries rather than maximizing profits.

This method also supports compliance with financial regulations that govern NAF operations, as it prioritizes operational sustainability over profit generation. While other pricing methods like cost plus markup or profit margin can be useful in various contexts, their emphasis on generating profits might not align with the foundational goals of NAF entities, which often prioritize community service and support.