Pricing methods - tips, examples, calculations. Pricing and pricing methods at the enterprise Cost-based pricing method in the garment industry

Chapter 10 Pricing Policies and Practices All commercial and non-profit organizations are faced with the challenge of setting a price for their goods or services. One price for all buyers is a relatively new idea. She received distribution only with

Question 24 Methods of collecting marketing information Answer Marketing information can be obtained in the course of one of three types of research (Fig. 24): desk; field; combined. The purposes of desk research are collection and processing

Question 25 Methods of obtaining primary information. Observation Response Observation is a passive registration by a researcher or technical devices of certain processes or human actions. The main conditions for observation are:

Question 26 Methods of obtaining primary information. Experiment Answer Experiment is a research method used to assess causal relationships, implying the active intervention of researchers in certain processes: they change one parameter or

Question 27 Methods of obtaining primary information. Poll Answer Poll - finding out the subjective opinions and preferences of the respondents (interviewed persons) in relation to any object. Polls are very diverse. The classification of polls is given in table. 21 Table 21

Question 10 What are management practices? Answer Management methods are rules and procedures, the adherence to which and the implementation of which allows the manager to achieve the main goal of management: to ensure the harmonious development of the managed object.

Question 145 What are structural methods of conflict resolution? Answer There are four of these methods: 1. Clarification of job requirements. The better employees understand their task and the result that needs to be obtained, the less the likelihood of conflict. 2. Coordination and

Pricing Methods The pricing method is determined on the basis of an analysis of the state of demand, production and sales costs, and the level of competition. There are several pricing methods: costly, target profit targeting,

Pricing Issues The importance of the “correct” pricing issue requires no explanation or proof. We will restrict ourselves to indicating the main goals of pricing.? Achieve maximum store attractiveness at prices for target shoppers. Security

In this article, we'll take a closer look at the various pricing methods that are used most frequently and with great success by merchants. Read on to find out how to choose the right pricing method for your company and which methods deserve special attention.

In this article, you will read:

• What are pricing methods
• What market pricing methods are most effective in practice
• How is the choice of the pricing method made, what criteria should be followed
• Which commercial pricing methods deserve special attention
• How to select and combine modern pricing methods, taking into account the specifics of your company

What is pricing

On the one hand, the pricing mechanism is a link between prices and pricing factors, on the other hand, a method of price formation.

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Pricing has the following objectives:

- ensuring the existence of the organization;

- gaining leading positions in the market;

- the maximum increase in profits.

Basic pricing methods

For the pricing of products and services in practice, 4 main approaches are used: enterprises with a focus on costs, with a focus on demand or focus on competition, market conditions.

The essence of the costs of this method assumes that the price of goods directly depends on the costs of production and circulation. The development of prices for the cost method is carried out according to the following scheme:

Product → technology → costs → price → value → buyer.

Cost-oriented methods and their characteristics

Working with costly pricing methods allows you to achieve sufficient accuracy in determining production costs, their ratio with possible profits for different production volumes, as well as the level of sales, market prices. Are among the costly pricing methods:

Full cost method. When working with this method, pricing is assumed based on the costs of production and sales of products, distributed by type of product, using the formula:

C \u003d Spr + Skosv + P, where

Spr is the cost in terms of direct costs (depends on the volume of production);

Skosv - the cost in terms of indirect costs, distributed by product in a certain way;

P - profit per unit of production.

This method offers a number of advantages, including low labor costs and a low price limit. Although it is not without its disadvantage - it is difficult to determine the cost in terms of variable costs.

The method of standard (normative) costs assumes the presence of a developed normative base. At the heart of pricing with this method, the following formula is applied:

C \u003d SPR * N + SKOSV * N + P.

By working with this pricing method, variance costs are managed, with control not only of costs, but also of profit. The disadvantage of this option is the difficulty in developing norms for the use of resources of all types.

Direct cost method. When working with this method, the cost is determined only in terms of direct costs, without the distribution of indirect costs by type of product, with repayment from gross profit.

The method of direct costs will be expedient for overloading production capacities, as well as when entering new markets. The following approach is used for calculations:

C \u003d SPER 1 * RM,

RVAL \u003d SPOS + P / SPER, where

SPER 1 - the prime cost of the I-th product in terms of variable costs;

RM - margin profit.

The method of averaged costs (costs)... Variable costs when working with this method are determined for each type of product by direct count. Fixed costs are calculated based on the average value, which is the same for all types of products of the enterprise. For this, the formula can be used:

C \u003d SPER 1 + SKOSV 2 + P,

SKEW.2 \u003d ZPOST / QGH

The method of marginal (marginal) costs - used for the case of expansion of production. The marginal cost is the amount of costs that are associated with the production of an additional unit of output. The marginal cost is the amount of costs that are associated with the production of an additional unit of output. Marginal costs can be more or less than average costs - depending on the nature and size of the demand for the product.

Target profit method (rate of return) - it is based on the selection of prices in order to obtain the required amount of profit and determine the break-even sales volume. For this pricing method, you need to consider various options for prices, assess the impact on sales. It is one of the active pricing methods, it involves monitoring price and cost changes using a break-even schedule. Pricing policy is based on optimization of sales and profit. The calculation can be based on the following formulas:

QBU \u003d ZPOST / C - SPER

QPROD \u003d ZPOST + PTSELEVA / C - SPER, where

QBU - break-even production volume in physical terms;

QPROD - the planned volume of production to obtain the target profit.

The required amount of profit can be determined based on the break-even graph.

This method has the disadvantage that the ability to sell depends on the price elasticity of demand. The price elasticity of demand denotes the degree of sensitivity of demand for a product to a change in its price, showing the percentage of the expected change in demand if the price changes by 1%.

IDEMAND \u003d IVOLUME / IPRICE \u003d ΔQ / ΔC * C / Q

The impact of the cost-based pricing mechanism falls primarily on the supply price, however, sellers in market conditions have to respond to demand, the buyer's price reaction, and not just to their costs, bringing the supply price closer to the demand price.

Value-based pricing methods: advantages and disadvantages

The value method involves the development of prices according to the following scheme:

buyer → value → price → costs → technology → product

Valuable methods include:

Consumer assessment method - allocation in the final price of premiums for reliability, quality with the publication of this information. This method is based on a way of comparing your price to that of a competitor. This method is based on client persuasion. When working with the method, additional costs arise for studying competitors, researching the market for goods and services.

The price of “following the leader” is used in cases where it is difficult to predict your costs and the reaction of competitors:

TsKONK.1<Ц< ЦКОНК.2

When working with this method, the price can be equal, less or more than the price of competitors. Large organizations set roughly the same prices. Small companies are expected to introduce small discounts by reducing overhead costs.

Setting discounted prices: paying in cash, providing bonus prices, club cards, dealer discounts, etc.

Competitive pricing is common among large suppliers invited to bid. The price is based on the expected price offers, not the relationship between demand and price. When establishing the lowest price, enterprises proceed from their costs, as well as from the analysis of the capabilities of their competitors.

4 core values \u200b\u200bof perceived value

1) “Value is“ this is a low price ”;

2) “Value is“ the quality that I get for the money I pay ”;

3) “Value -“ fulfillment of all my requirements regarding the service ”;

4) "Value is" what I get for what I pay. "

How to determine customer value

Stage 1 - Collect information about what is value to consumers.

Step 2 - Help customers clearly express their value to them and collect their key benefits, quality units.

Stage 3 - identify the internal and external attributes that affect the perception of the value of the service, connections with the attributes that reflect them.

Stage 4 - translate monetary and non-monetary values \u200b\u200binto a quantitative plane.

Stage 5 - determine the price based on the value to the consumer.

To translate the value perceived by consumers into monetary terms, a number of questions have to be answered:

1. What are the benefits of the service for consumers in the form in which you offer it?

2. What is the economically acceptable price?

3. How much will each benefit cost to the buyer in monetary terms?

How to sell below cost and earn more

Andrey Kozlov, Head of the retail network for selling tickets for air and rail transport "Bilet", Moscow

The company in the market of soft drinks organized a tender for the purchase of film for its pallets with bottles. It was necessary to purchase a specific film from a plant in Finland - 100 tons per month at a cost not exceeding $ 930 per ton.

The plant in Finland works with three Russian companies, offering sales of about the same volume every month. However, the factory is not ready to go for discounts - the entrance price is $ 1000, on average, the production costs $ 100. If the companies could guarantee the purchase of 200 tons per month, the company was ready for the price of $ 950, but there were no other discounts. The companies tried to come to an agreement with the manufacturer for the 970, but failed. 2 companies decided to abandon participation in the tender , and the third businessman made calculations:

Parametric pricing methods

To make pricing for new products, usually industrial and technical, work with parametric pricing methods is provided:

- method of the limiting price - involves the determination of the price by one of the parameters. This method is used for approximate calculations at the stage of developing innovations.

- the price method of points - the method of expert estimates is applied. Pricing is based on an analysis of the basic parameters of the base and new products - by adjusting the base price by the value of the ratio of points.

- price regression method - empirical formulas for the dependence of prices on the value of the main quality parameters within the parametric series are determined. Using this method allows you to simulate price changes depending on factors influencing it.

Market-based pricing methods that are relevant in competitive markets

The use of market methods is most common in competitive markets. Market-based pricing methods typically include:

- methods for determining prices based on competitors' prices;

- consumer-oriented methods.

In the first case, either the average market price or the price of a competitor that holds the bulk of the market for similar products or services becomes the basis. To determine the final cost of a product or product, a company takes into account the comparative characteristics of its products using markups or discounts in relation to competitors' prices.

This method assumes the advantage that there is no need for additional costs to study demand. Since its level leads to a less significant impact on the price of products or services.

Among the methods that involve customer focus, there are demand-oriented methods, as well as methods based on the perceived value of the product.

In this case, the main factor in pricing is not the costs borne by the seller, but the perception of the buyers. Companies work with the use of non-price methods of influence, on the basis of which consumers form a special understanding of the value of the offered products. In this case, the price must match the perceived value of the product. The company will have to identify what value ideas about products are formed in the minds of consumers, or how much the buyer is willing to pay for each benefit.

The market pricing method assumes that the company considers production costs only as a limiting factor, below which the sale will be economically inexpedient.

But when entering new markets, companies sometimes resort to dumping prices. This strategy is used to drive competitors out of the market. But you need to take into account - dumping is unjustified for products that are positioned in the highest price segments.

We use the combined method

Gennady Kurnosov, Executive Director of OJSC Yuzhuralkonditer, Chelyabinsk

In our work, we use a combined pricing method. Each enterprise needs to take into account the costs with an assessment of various factors on which the cost of production depends, with an analysis of alternative market proposals.

How to act if the cost price changes under the influence of certain factors, which has led to negative consequences for profitability? It would be logical to raise prices. Although this decision is not so straightforward. It is imperative to take into account the distribution channels, market demand. Otherwise, the rise in prices will be illogical and will simply lose the sales channel.

Therefore, in relation to each position, we conduct a comprehensive analysis. We estimate demand, current state sales channels. If demand is high enough, you can think about adjusting product prices.

In another situation, when there is a low demand for products, with a high sensitivity of channels to changes, we reduce costs, increase overall productivity, look for opportunities to eliminate costs and, of course, improve the working and technological process.

If all possible internal possibilities are exhausted, but prices are lower than competitors, we decide to increase the value. From experience, we can say that in such conditions one can rely only on the local market and channels that facilitate access to end consumers.

Commercial pricing methods to look out for

1) Take steps that others don't

You can also use the principle of competitors - following them by raising prices and other unpopular decisions. However, other approaches are also possible, standing out from the background of other market participants. So, in order to strengthen the market position of the Rowenta brand, irons with an innovative design were presented in the manufacturer's line, which stood out against the background of analogues.

2) Consider your brand's competitive advantage

If you can understand the strengths and advantages of your company and the offered products, then the question of pricing methods will not arise. After all, you can achieve greater profitability due to important benefits and convenience for consumers. At the stage of organizing a business, it is possible to plan the positioning of products or services in a more expensive category, but for this you need to think about the corresponding competitive advantages.

3) Income from the service of the company

Another pricing option is the implementation of additional services or goods. The Gillette brand managed to achieve such a result - the machines themselves are very cheap, but the company earns its main income from consumables.

4) Assigning the base price

Producers of goods in the mass market are trying to stay in the price range between the cost of production and the prices of competitors. Therefore, the main stake falls on the maximum sales volume. With the growth of sales, the company's income also increases, assuming a decrease in the cost of one unit of production.

5) Find the main function

More massive demand for goods presupposes an increased attention of the target audience to the consumer properties of products - dimensions, materials, efficiency, etc. But not always the main attention is paid to the properties located on the surface.

6) Falling leader method

Within each category, certain markers are selected - products that attract the primary attention of buyers. On the basis of these markers, the cheapness or high cost of the entire category will be determined. The cost of markers should be as low as possible - it is necessary to promote and highlight these offers in every possible way. This approach has proven itself effectively in the work of various brands, including household appliances stores.

7) Successive approximation method

A highly effective method for companies specializing in a wide range of products. For a certain period, the price of the corresponding product is set according to the formula "profitability + 2-5%". With regard to new products of new categories, each stage of "approximation" is carried out - it is necessary to control changes in consumer attitudes, pricing of the company.

8) Row expansion method

The rows unfold in different directions - with the addition of new promising product categories, expanding the available nomenclature in the sold categories. This method must be followed carefully and carefully, following the principles of the marketing business concept.

9) Method of "stripping" clients

Before adjusting the price of products, it is necessary to identify unprofitable customers. Sometimes taking care of some customers leads to disruptions to the logistics of the company and the entire market. Therefore, an audit on the ratio of profitability and loss-making of clients is relevant here.

More expensive, but better

Alexander Petryaev, Chairman of the Board of Directors of EuroOkna, Moscow

Our company is focused on end users. We work with modern equipment, but we position ourselves as a service, not a manufacturing company. Our products and services to end users are relatively expensive. The buyer can always find cheaper options, but usually this choice is accompanied by problems in the future operation of windows - more than 40 years.

On the wall we have posted a rule - "Reducing prices leads to death." We stake on working with the most qualified and highly paid specialists. A similar principle is established for the components used. From the first day of work, we decided to work only with first-class suppliers - we never had to regret it.

The main parameter in evaluating our work is the number of clients who contact us for recommendations or repeatedly. It must be taken into account that there can be no really high-quality service at cheap prices.

4 ways to set prices

1 way - the price is determined at the cost

According to experts, this is not the best option. Indeed, in this case, consideration of the willingness of buyers to pay is not provided.

Method 2 - market-oriented pricing methods

Many companies choose it. The pricing method used is based on competitor prices. This option can be considered a little better, but again the willingness of the buyer to pay more than the specified price is not taken into account. Moreover, for many buyers the price becomes a marker of product quality.

Method 3 - the method of pricing from hopelessness

This pricing method assumes that if a person has no choice, he is forced to buy from you.

4 way - methods of pricing from the benefit of your client

This pricing method is more suitable for b2b market than for b2c.

1. Sell at a fair price. This method of pricing allows you to avoid excuses, gives confidence in the course of promoting products, defending prices.

2. Refuse customers who do not want to buy products at your price.

3. Be flexible at the right time.

4. Be persuasive. When a buyer is interested in justifying the value of a product, one must be able to explain the benefits to him and the reasons for the price.

Information about the author and company

Alexander Petryaev, Chairman of the Board of Directors of EuroOkna, Moscow. The company "EuroOkna" was founded in 1995. It is engaged in the production and installation of plastic windows, has modern German equipment and technologies.

Gennady Kurnosov, executive director of OAO Yuzhuralkonditer, Chelyabinsk. OJSC "Yuzhuralkonditer" is engaged in the production and sale of confectionery. The company is part of the United Confectioners holding, a union of 15 Russian factories specializing in the production of confectionery and food products (including Rot Front OJSC, MKF Krasny Oktyabr OJSC, and Babaevsky Confectionery Concern OJSC).

Andrey Kozlov, head of the retail network for the sale of tickets for air and rail transport "Bilet", Moscow. He received two higher educations - with a degree in applied mathematics at the Moscow State Institute of Steel and Alloys (MISiS) and with a degree in management at the State Academy of Management (GAU) under the Government of the Russian Federation. Since 1999, he has been working in management positions (commercial director, purchasing director, marketing director) in trading and manufacturing companies. Since 2003 - the owner of his own marketing bureau "Advice of an outsider". Since the same year, he has been managing the "Ticket" project.

After defining and analyzing the function of the demand, the structure of the support and the price of the contestants, it will be time to make a decision about the price. For this, it is necessary to choose a method of pricing that would take into account the named limits to the maximum extent. There are three groups of pricing methods:

pricing, based on own costs;

pricing, based on demand;

pricing, optimized for competition.

Having chosen and applied one of the pricing methods, it is necessary to make a pricing decision, i.e. set a specific price. Here it is necessary to clean up such aspects, as a psychological type of operation, the influence of other elements of the marketing mix, to check the observation and to identify the correct schemes

Pricing methods

Costly methods.

There are several costly methods that determine the price on a cost-plus basis.

1. Costly method taking into account the full (or average) costs of production of products is based on the determination of the total cost, including both variable and fixed costs. The essence of the method consists in summing the total costs: variables (or direct) plus fixed (or overhead), and the profit that the company expects to receive.

The main advantage of this method is its simplicity and convenience. This is due to the fact that the manufacturer always has data on its own costs. However, it has two major drawbacks:

1) when setting prices, the existing demand for the goods and competition in the market are not taken into account, therefore, a situation is possible when the goods at a given price will not be in demand;

2) any method of attributing fixed overhead costs to the cost of goods, which are expenses for managing the enterprise, and not expenses for the production of this product, is conditional.

2. Direct (or marginal) cost method is based on setting a price by adding a certain markup to variable costs - profit. At the same time, fixed costs as expenses of the enterprise as a whole are not distributed among individual goods, but are paid from the difference between the sum of sales prices and variable costs of production. This difference is called "added" or "margin" profit. With the right approach, variable (direct) costs should be the limit below which no manufacturer will evaluate their products. In any case, the true cost function is to set a lower limit on the initial price of a product, while the value of that product to the consumer determines the upper limit on the price of it.

Selling goods at a price calculated using this method is effective at the saturation stage, when there is no growth in sales, and the company wants to maintain sales at a certain level.

3. The method of calculating the price based on the analysis of break-even and ensuring the target profit is based on the fact that the company seeks to set the price of its goods at a level that would ensure the receipt of the desired amount of profit. The break-even point is the intersection of the total revenue curve and the total cost curve. At the break-even point, the amount of profit is zero. The main disadvantage of the method for determining prices based on the break-even analysis is that the relationship between the price of goods and actual demand is not taken into account.

4. Pricing method based on ROI analysis... The main task of this method is to estimate the total costs for various programs for the production of goods and determine the volume of output, the implementation of which at a certain price will allow to recoup the corresponding investment. The set premium to the cost of production includes the percentage of return on capital invested.

5. Structural analogy method... The essence of this method is that when establishing the price of a new product, the structural formula of the price is determined by its analogue. To do this, use actual or statistical data on the share of basic elements in the price or cost of a similar product. If it is possible to accurately determine one of the price elements for a new product, for example, material costs, consumption rates, etc., then by transferring the analog structure to a new product, an approximate price can be calculated.

In domestic practice, costly methods are used when setting prices for:

A fundamentally new product, when it is impossible to compare it with the manufactured product and the amount of demand is not known enough;

Products manufactured according to one-time orders with individual production characteristics (construction, design work, prototypes);

Goods and services, the demand for which is limited by the population's ability to pay (repair services, essential products).

Demand orientation.

In this case, prices are determined on the basis of marketing estimates, that is, based on market research.

Almost all enterprises, when forming a price for their products, one way or another take into account the demand factor in it, since if the price exceeds the level to which consumers agree, the product simply will not be sold. Therefore, this method is often used in conjunction with other pricing methods or, in the case of a unique product, it can be applied on its own in the first place.

This method makes it possible to implement the strategy of high prices (premium pricing or “skimming”), which is used by the firm, as a rule, under the following conditions:

There is a very high and growing current demand from a fairly large number of buyers;

Production costs allow you to maintain an efficient output of products, and financial results contribute to increasing the output of a new product and its supply in the market;

A high initial price will not attract new competitors to the production of the product;

The high price corresponds to the high quality and does not interfere with attracting new customers.

The use of this method involves a lot of work on the study of the market, demand, elasticity, the firm must have the financial capabilities and specialists for expensive research. The method is closely related to the differentiation of its product and the differentiation or segmentation of the market.

When studying potential demand, research is carried out to identify:

Ideas about the price and the “price affordability plug” for most buyers;

Reactions to price changes (elasticity) using questions about the possibility of buying at different prices;

Opportunities and necessity of price differentiation in accordance with purchase costs, solvent, demographic, psychological and other characteristics of buyers.

The disadvantage of this method is that the information is distorted due to the lack of the moment of purchase as a fact.

Test sales may also be conducted. In this case, once an acceptable price range has been determined, the price is varied based on observing consumer responses to optimize the revenue-sales mix.

Auction prices for unique or prestigious goods are also examples of demand-driven prices.

Competitive orientation.

If the price determined on the basis of production costs is, as a rule, the lower level of the calculated one, and the price determined on the basis of demand is the upper level, then the indicated range is the so-called field of the game, where the estimated price will most often be.

Typically, a firm is forced to build its policies in line with the existence of competitors; it is usually aware of its competitors' pricing experience.

One of the methods of pricing in this case can be a focus on competitors. If there is a clear leader in the market, the rest follow. Moreover, price leadership can be dominant when there is a firm in the industry that has low costs, which means that it has clear price advantages over others. Or there may be barometric leadership, where the firm's price changes are supported by other manufacturers who recognize the leader's ability to set prices in full accordance with changing market conditions.

With this method, the manufacturer is guided by the prices of the competitor, and accounting for its own costs and demand plays a subordinate role here. The manufacturer sets the price of the product slightly higher or slightly lower than that of the closest competitor. This is only possible on a market with homogeneous products. By relying on this method, the firm gets rid of the risk associated with setting its own price in the sense of its acceptance by the market.

In addition, in a highly competitive environment, the firm has little chance of influencing market prices. At the same time, in the conditions of pure oligopoly, the enterprise has the practical ability to maintain its price for a long period.

Another method of pricing in a specified range between minimum and maximum is active pricing, which is associated with the use of the firm's competitive advantages, such as cost leadership and product differentiation.

Cost leadership allows the manufacturer to set a lower price for their product compared to the competition and still make a profit.

This can be achieved by saving:

On the assortment of products due to the inclusion in the "portfolio" of the firm of goods that have a common set of costs: the more costs that are common for the goods, the more significant the synergy obtained from expanding the "portfolio";

Due to the scale of production: there is a tendency for costs to decrease as production volumes grow;

Through the accumulated experience associated with learning-by-doing: the more a company produces, the more it learns about how to make production efficient.

Product differentiation occurs when a firm produces a product that differs from competitors' products in some attractive features from the point of view of buyers. As a result, the firm gains the right to increase the price depending on the presence of such distinctive features, and the price premium must exceed the costs incurred in connection with the product's distinctive features. Both the consumer properties of the product itself and the after-sales service can be unique.

Many products are sold at fixed standard prices, while the quality exceeds consumer expectations. In this case, the main competition revolves around the functionality of products sold at one standard price. This situation is characterized as flexible competition. In this situation, the advantage is gained by the company that is able to provide the best consumer properties of the product at a given standard price. The most important factor in flexible competition is a company's ability to innovate quickly.

In reality, the prices of different companies producing similar products can vary significantly. There are several reasons for this discrepancy. One of them is various production technologies. Some companies' manufacturing facilities are better suited to fulfill a specific order, resulting in companies gaining cost benefits. Another reason may be the degree of loading with orders at the time of setting the price. Firms that are not fully loaded may charge reasonable prices in anticipation of additional orders.

Another reason for significant price discrepancies is the different cost accounting and pricing methods. Many companies use valuation techniques that do not reflect the true level of their costs. Traditional methods of cost accounting in many cases distort the reality and in some situations can cause serious problems if prices are set on their basis. In large-scale production and in the manufacture of relatively simple products, traditional cost accounting methods lead to their overestimation, while costs for small-scale and technically complex products are overestimated. Thus, companies have no idea about the real profitability of certain products or sales.

Consequently, any company that has implemented more accurate cost accounting methods, for example by type of activity, will gain a competitive advantage.

If a company has not become a cost leader, it must know its real costs in order to compete in price.

Application of methods focused on demand and competition will give similar results if the company enters the market with the goods already on it in the absence of price collusion of competitors (the selling price of the goods corresponds to the demand price, and is not imposed on the market).

The company does not just set one or another price - it forms a whole price system that covers various goods within the product range and takes into account the differences in the costs of selling the goods in different geographic regions, differences in demand levels, the distribution of purchases over time, etc. At the same time, the enterprise carries out its activities in an environment of a constantly changing competitive environment, often takes the initiative to change prices and can respond to the price actions of competitors.

Having established the initial price, the company adjusts it depending on various factors in the market. Various methods of establishing them can be used, which are given below:

- setting prices based on demand;

- setting prices for new goods;

- pricing within the product range;

- setting prices on a geographic basis;

- setting prices to stimulate sales;

- setting prices at the level of competitors.

Demand-Based Pricing Method.

With this approach to determining the price of its product, the enterprise proceeds from the position that the consumer independently evaluates the value of the product (service), taking into account the main and additional (for example, psychological) advantages of the product in comparison with similar ones on the market, the level and quality of after-sales service of the product and so on, and taking these circumstances into account, determines the relationship between the assessment of the utility of the product and its price.

The main factor in this method is not the seller's costs, but the consumer's perception, which allows the buyer to choose the most optimal product from the point of view of price and quality from the entire offered range, taking into account that the purchase of an expensive product may sometimes be more expedient than the purchase of a cheap analogue.

For example, the buyer makes a choice between two copiers "A" and "B" (Table 2.3).

Table 2.3

Copier parameters "a" and "b"

The difference in the cost of acquiring copiers is 305 rubles. Copier type "B" for 200 rubles. more economical, which allows you to compensate for the higher cost of its acquisition within a month and a half. After 15 months, the monthly savings achieved by purchasing a B copier will equal the cost of purchasing it.

Method of setting prices for new goods... The company's strategic approach to the problem of pricing largely depends on the stage of the product's life cycle. The stage of new product promotion to the market is especially difficult. There is a difference between pricing a genuinely new product protected by a patent and an imitation product similar to products already on the market.

Setting a price for a genuine novelty... An enterprise entering the market with a patent-protected novelty sets either the “skimming” price or the market introduction price for it.

With a skimming strategy, businesses first set maximum prices for a product to skim the cream off different market segments, and then lower them. At the same time, enterprises strive to maximize profits until the new market becomes an object of competition. The skimming method has the advantage under the following conditions:

1) a high level of demand from a large number of buyers;

2) production costs are not so high as to negate the profit of the enterprise.

Using the strategy of introduction to the market, the company, on the contrary, sets a relatively low price for the new product in order to attract more buyers and win a larger market share. However, applying low prices, the management of the enterprise should determine as accurately as possible the possible economic consequences of this. But in any case, the risk is very high, since competitors can quickly respond to low prices and also significantly reduce the prices of their products.

Setting a price for a new imitation product... At present, the establishment of prices for goods and services already available on the market cannot be carried out without constant improvement of the technical indicators of the product and improving its quality. At the same time, an improvement in quality is accompanied by an increase in production costs, which means an increase in prices for goods. To succeed in competition, the company's management needs to develop a strategy that ensures a constant decrease in prices for goods and services traditional for this market segment.

In market conditions, an enterprise must simultaneously solve two problems: first, constantly improve the quality and improve the consumer properties of goods already on the market and, secondly, continuously lower their prices. It is important to correctly determine the general approach to pricing for specific types of goods for a specific market segment.

The company is obliged to make the right decision on the positioning of the imitation product in terms of quality and price.

Pricing method within the product nomenclature... The approach to pricing is fundamentally different if the product is part of the product range. In this case, the company develops a price system that can ensure maximum profit for the product range as a whole. Determination of prices is complicated by the fact that different goods are interconnected with each other in terms of demand and costs and face varying degrees of competition.

Thus, many enterprises, along with the main product, also offer some complementary and auxiliary products. The difficulty here lies in determining what should be included in the price as a standard package and what should be offered as complementary items. If a product is bundled with a large number of complementary items, the price can rise to such an extent that consumers refuse to purchase. In the case of selling goods without complementary products, consumers may refuse to purchase them due to the need for additional payment for complementary products they are interested in.

In a number of industries, the so-called obligatory accessories are produced for the manufactured goods, which are used together with the main product. Manufacturers of basic products often charge relatively low prices and high prices for essential items. As a result, they are able to generate high profits from the sale of these accessories. Other manufacturers, which do not offer their own required accessories, have to charge a higher price for the main product to get the same gross income.

Geographic pricing method... The geographic pricing principle is the establishment of different prices by the enterprise for consumers in different parts of the country. Transportation of goods to a distant customer is more expensive for a business than for a customer located nearby. Does it make sense to charge distant customers a higher price for the product to recover higher shipping costs, risking losing customers? Wouldn't it be better to set the same price for all buyers regardless of their distance? There are five options for determining the price on a geographic basis:

- setting prices at the place of production of goods;

- the establishment of a single price including the costs of delivery of goods;

- setting zonal prices;

- setting prices in relation to the basis point;

- setting prices with payment by the enterprise of delivery costs.

The last method of the above is used when the company is interested in maintaining business contacts with a specific buyer or with a specific geographic area. Therefore, in order to ensure the receipt of orders, the company pays part or all of the actual shipping costs. This price is also used to penetrate new sales markets and to maintain its position in markets with intensified competition.

Pricing Method to Promote Sales... Under certain conditions, enterprises temporarily set prices for their goods below market prices, and sometimes even below costs. There are various options for such prices.

1. Enterprises can install them on some goods as “unprofitable leaders” - to attract buyers in the hope that they will buy other goods at the same time at a regular price.

2. To attract more customers in certain periods of time, sellers use lower prices on sales, for example, winter.

3. Discount for consumers purchasing goods from dealers in a certain period of time. It is a flexible means of reducing inventory during times when sales are difficult without lowering list prices.

Competitive pricing method... The influence of the factor of competition on making decisions about setting the price of a product depends on the structure of the market. Businesses that follow this tactic will price their product slightly above or below the competition.

The most common in this case are the following pricing methods - the current price method and the sealed envelope method.

Current price method... In cases where costs are difficult to measure, some enterprises believe that the current price method, or the price usually received for a product in the market, is the result of a joint optimal decision of enterprises in the industry. The use of the current price method is especially attractive for those businesses that want to follow the leader. This method is used primarily in markets for similar goods, since an enterprise selling similar goods in a highly competitive market has limited opportunities to influence prices. In these conditions, the main task of the enterprise is to control costs.

Sealed envelope method, or tender pricing, is used in industries where several companies are in serious competition for a certain contract. When determining the tender, one proceeds primarily from prices that can be assigned by competitors, and the price is determined at a lower level in comparison with them.

However, if a product has some qualities that distinguish it from competitors 'products, or is perceived by buyers as another product, the price for it can be set flexibly, regardless of competitors' prices.

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