Pricing methods - tips, examples, calculations. Pricing and pricing methods in the enterprise Cost method of pricing in the clothing industry

Price value in market economy very large. It determines not only the profit and profitability of the organization, but also the structure of production, affects the movement material flows, distribution of commodity mass, etc. A well-constructed pricing policy is the key to the efficiency of the organization. For this, special methods, calculations and formulas are used. Pricing is a complex process, which will be discussed next.

Pricing tasks

Pricing in the enterprise and in the organization pursues certain goals. To achieve them, certain tasks are set. They are solved in the course of a certain variant or direction of price behavior.

The list of tasks is usually common for any state. But it may vary. It depends on the stage of development of the economy, the types of processes that develop in it, etc. Before considering the pricing formulas in foreign trade, in the domestic market, etc., you need to pay attention to the tasks of this process. IN general view they look like this:

Coverage of production costs in the process of manufacturing products, as well as its implementation. This allows you to provide a profit, the amount of which will be sufficient for the normal operation of the organization.
Determining the degree of interchangeability finished products in the process of value formation.
Solving social issues.
Implementation of environmental practices in the process of building the appropriate policy of the organization.
Solving issues in the foreign policy sphere.

A feature of the market development in the early stages were horizontal connections. They were established between consumers, producers, as well as intermediaries. During this process, the first two of these tasks were solved. The rest of them are not only in front of production, but also modern society generally.

In the conditions of market development, with the help of prices, the following tasks are solved:

Coverage of production costs, which ensures the profit of the company. This is a requirement of both the manufacturer and the intermediary. Each of them must set such a price in order to make a profit, and the enterprise worked profitably. The more favorable the market environment, the higher the cost of production can be. As a result, the company makes a big profit.
Accounting for the interchangeability of goods, works or services. If products with the same properties but different prices are on sale, the buyer, of course, will choose the cheapest option.

Other tasks arise purely in the conditions of the modern market. Therefore, pricing methods, the formulas of which will be discussed below, make it possible to move from a spontaneous, undeveloped market to its regulated form.

Stages

Before considering the formulas for solving pricing problems, you need to pay attention to the stages of this process:

Setting goals.
Determination of demand for products.
Evaluation of the number of costs.
Analysis of the cost of competitive products.
Choice of pricing method.
Formation of the cost of products, the rules for its change.
Accounting measures state regulation in the area of pricing.

At the first stage, the economist must decide what problems the appropriate pricing policy will help to solve. For example, a company can change the quantity of manufactured products or its structure, capture new markets, achieve a stable assortment, reduce costs, and so on. It may also be required to improve the quality of products or increase the level of profit to the maximum level.

At the second stage, you need to analyze the demand for products. At the same time, it is important to determine how many products an organization can sell at a particular price level. Not always the results of the work are positively reflected by the maximum level of sales at the most low prices, and vice versa.

Therefore, when determining pricing in trade, the formula for elasticity and the supply and demand coefficient is determined necessarily. In this case, the following calculation is applied:

Ke \u003d Growth in the volume of demand,% / Decrease in prices,%, where Ke is the coefficient of elasticity of demand.

The supply and demand coefficient is defined as follows:

Ksp \u003d Growth in supply,% / Price increase,%.

If demand is elastic, goods are highly dependent on the price level. It depends on the volume of sales. If the cost rises, customers will purchase goods less often. Luxury goods are characterized by elastic demand. Some products are inelastic (e.g. matches, salt, bread, etc.).

Next steps

Pricing formulas involve costing. They are used to determine the cost of production. This allows us to consider the structure of this indicator, to find reserves for its reduction.

At the fourth stage, the analysis of competitors' prices is carried out. This is a complicated procedure, since the issue of pricing at the enterprise is a trade secret. However, this work still needs to be done. It is required to determine the price of indifference, at which the buyer will not care which manufacturer's product to buy.

At the fifth stage, pricing methods are selected. Each of them has its own formulas. The most common methods are:

Low marketing and production costs.
Devices.
The uniqueness of product characteristics.
Cost marketing.
Mixed.

After that, the final price is set. They also establish rules for changing it in the future. At this stage, two tasks are solved:

Created own system discounts. She needs to learn how to use it correctly.
The price correction mechanism is determined. This takes into account the stage of the life cycle of goods. It is also necessary to determine inflationary processes.

At this stage, marketing and financial services must create an expedient system of discounts, presenting them to customers. Be sure to determine the degree of impact of discounts on marketing policy.

After that, the measures of price regulation by the state are taken into account. It is necessary to predetermine how such actions will affect the level of product cost. The level of profitability may be limited by law. Subsidies are given for some goods, tax sanctions are applied. In some cases, seasonal price reductions are carried out.

An assessment of the patent purity of products is also carried out, especially when they are delivered abroad.

Comparison of pricing methods

There are different ways to calculate pricing. They have certain advantages and disadvantages. The main methods used in such a process are as follows:

full cost method. It's also called Cost Plus. The advantage of this approach is that it provides full coverage of the variables and fixed costs. This allows you to get the planned level of profit. The disadvantage of the technique is the inability to take into account the elasticity of demand. Also, there is not enough incentive to reduce costs in the enterprise.
Method of determining the cost based on reduced costs. Allows you to revise the structure of the assortment by choosing the optimal nomenclature list. A special formula is applied for the cost method of pricing. An additional list of costs is formed. The disadvantage of the methodology is the complexity of the distribution of costs for fixed and variable items according to the product range.
Return on investment method. Allows for cost financial resources, credit funds. The disadvantage of this approach is called high interest rates, their uncertainty, especially when inflation is high.
Method of return on assets. The method allows to take into account the effectiveness of the application certain types assets in accordance with the issued nomenclature. This ensures the required level of profitability of the company's assets. The disadvantage of the methodology is the difficulty in determining the employment of certain types of property of the organization when using the nomenclature.
Method marketing estimates. Allows you to take into account market conditions, as well as determine the characteristics of the reaction of buyers to certain changes. The disadvantage of the methodology is a certain conventionality of quantitative estimates.

full cost method

Among the pricing formulas in production, the most common is the calculation using the full cost method. To reveal all the features of the presented approach, it must be considered with an example. For example, a company manufactures 10,000 units. products for reporting period. The costs of production and sale are as follows:

Variable production costs (Rper) - 255 thousand rubles. (25.5 rubles per unit).
Fixed overhead costs (Ptot) - 190 thousand rubles. (19 rubles per unit).
Administrative, commercial costs (Rka) - 175 thousand rubles. (17.5 rubles per unit).

Total costs (Rfull) is determined by 620 thousand rubles. (62 rubles per unit). At the same time, the desired amount of profit (Pzh) is 124 thousand rubles.

When calculating the price using the presented method, you need to add the required profitability indicator to the sum of the total costs (variable and fixed). It covers the entire level of costs for the manufacture of products and their sale. Also, the organization receives the desired profit. This technique is widely used in industries with a large nomenclature list.

The methodology involves the calculation of the rate of return:

P \u003d Pzh / Rfull * 100% \u003d 124/620 * 100% \u003d 20%.

This is the required level of profitability, on the basis of which the price of products is calculated. At the same time, the pricing formula according to the “Cost plus” principle is calculated by the formula:

C \u003d Rfull + Rfull * R / 100.

In the calculation, you need to take these units of production:

C \u003d R full. / 1 - R.

When using the presented pricing formula, the retail price will be the same (74.4 rubles).

Therefore, profitability includes a price that is acceptable to the organization. If for some reason it is impossible to present commercial products on the market at a given cost, you need to look for ways to reduce costs or provide for other profits.

Reduced Cost Method

You should continue to consider examples of pricing calculations. One of the most common is the method of reduced costs. In this case, the level of required profitability is added to the variable costs. This figure should cover all fixed costs. Putting such profitability into the price of products, the company can make a profit.

This method is widely used in many industries today. Especially in those organizations where the "direct costing" system is used. In this case, the costs are divided into variable and fixed. The second category includes, for example, depreciation, rent, interest on loans, etc.

Variable costs change proportionally with the volume of production. They are calculated per unit of production. They represent the cost of raw materials, the wages of employees involved in production, etc.

To determine the cost of production, you need to calculate the level of profitability:

P \u003d ((Pzh + Rtotal + Rka) / Rper) * 100%.

P \u003d ((124 + 190 + 175) / 255) * 100% \u003d 191.8%.

C \u003d R full. + Рfull * Р/100.

C \u003d (25.5 + 25.5 * 191.8 / 100) \u003d 74.4 rubles.

The price is calculated per unit of production. This method allows you to get the same result as using the full cost method. This is due to the fact that the same inputs are used. If the information is different, then this difference is compensated for by a different level of profitability per unit of production.

Return on investment and assets method

Considering the formulas for calculating pricing, it is worth noting the method of return on investment. Cost is determined by profitability. It must be higher than the price of third-party investment funds.

It is necessary to determine the value total costs, which form the cost per unit of output. They add the cost of interest on the loan. This allows you to take into account paid financial resources in the price.

This approach is used by organizations that produce a large list of products. Their production costs are different. This approach allows you to calculate the price and new products. For this, the method of determining the return on investment is well suited. On its basis, the volume of production of such products is calculated.

For example, a company wants to calculate the price of a new product. It is planned to produce annually 40 thousand units of products. Variable costs are 35 rubles / unit. Fixed costs amount to 700 thousand rubles. To produce new products, the company needs additional funding. Sum borrowed money is 1 million rubles. The bank allocates a loan at 17% per annum.

To determine the unit cost of a new product, a simple calculation is made. The fixed costs for one product are determined:

700/40 = 17.5 rubles

The total cost is calculated as follows:

17.5 + 35 = 52.5 rubles.

The desired revenue must not be lower than the cost of the loan:

(1 million rubles * 0.17) / 40 thousand rubles. = 4.25 rubles / unit

The minimum unit price will be:

52.5 + 4.25 \u003d 56.75 rubles.

The return on assets method involves adding a percentage to the total manufacturing costs that equals the return on assets. It is set by the company itself. For this, the following formula is applied:

C \u003d R full. + (Р + Sakt)/OPozh, where Sakt - the value of the property of the enterprise, OPozh - the volume of sales expected in the future (in natural units).

Method of marketing estimates

Other pricing formulas apply. One approach that is suitable in different circumstances is the method of marketing estimates. It involves the use of information about past auctions, competitions. The winner is the manufacturer whose bid price can guarantee acceptable terms for the implementation of the forthcoming work, as well as the quality of the finished product. A reasonable price in this case provides a profit.

This technique is used, if necessary, to select the executors of the state order or in the process of socially significant work. Another approach can be applied, for example, return on sales. The price in this case is determined by drawing up an estimate of the total costs. Profitability is calculated on the formula:

P \u003d Pzh / Rfull * 100%.

You can also form a price using information about gross profit. In this case, the full cost method is applied. The profitability included in the cost of production is calculated as follows:

P \u003d (Pzh + Rka) / Roll * 100%.

Relangi method

When studying pricing formulas, it is worth paying attention to the relangi method. It is often used in the chemical, light and other individual industries. In this case it is planned life cycle products. According to the actual terms of such a cycle, the price of a unit of production is also formed.

It is necessary to apply this method if you want to observe, constantly monitor the presence of marketable products on the market. For this, the ratio of price and demand is taken into account and even sometimes changes. The application of the presented methodology provides a number of possibilities:

Change in the physical characteristics of marketable products.
Changes in performance.
Performance minor changes characteristics.
Supplement the product with some special services, for example, consultations, extension of service and service, and so on.
Product update.

At the same time, it is necessary to take into account the fact that in the manufacture of long-lasting products, the period of their use is artificially reduced. To do this, simply change the design. At the same time, the range of finished products is expanding, the filling of the trading network with the organization's products is expanding.

consumer effect method

This approach involves taking the effect of the use of new products as a basis when calculating the price. It arises in the field of consumer demand. The pricing formula in this case would be:

C \u003d Cbi + E * Kt, where:

Tsbi - the cost of the base product, which was produced earlier;
E - consumer effect when replacing the old product with a new one;
Kt - coefficient of braking, obsolescence of the product.

Question 55 Pricing methods

Answer

When solving pricing problems, firms take into account three factors:

Production cost;

Prices of competitors (for analogues and substitutes);

The unique properties of the manufactured product.

For profit maximizing firms, the price space model is shown in Fig. 77.

Rice. 77. Limits of price manifestation

There are four alternative methods for determining the price of a product (Fig. 78).

essence cost based pricing is to determine the price based on the cost and standard profit. This method allows you to set a price limit, below which it is possible only for a short period of time and under specific conditions (forcing competitors out of the market, penetrating new market etc.). Costs can be taken into account as full (fixed plus variables) and marginal (only direct variables).

Rice. 78. Pricing Methods

One of the methods for calculating prices using the cost-oriented method is based on determining the break-even point (Fig. 79).

Rice. 79. Break even chart

essence competitive pricing It consists in the fact that the manufacturer (seller) sets prices for goods slightly lower or slightly higher than their closest competitors. At the same time, there is no desire to establish a relationship between price and costs or demand.

Demand driven pricing is based on the buyers' subjective assessment of the value of the purchased goods, determined by the following factors:

Product functionality;

Psychological benefits from using the product;

Service level.

Within the framework of this method, a pricing technique based on elasticity of demand(the ratio of the percentage change in sales to the percentage change in the price of goods). If the value of this indicator is greater than one, demand is considered elastic (when the price changes, the sales volume of the goods changes accordingly); with a value less than one, demand is inelastic (when the price changes, one cannot count on a significant change in demand).

Table 33The main advantages and disadvantages of basic pricing methods

The main advantages and disadvantages of the above three pricing methods are given in Table. 33.

Combined method(pricing with simultaneous consideration of costs and market situation) is a combination of the methods discussed above. In this case, the following sequence of actions is performed.

1. The sales volume is predicted, costs are calculated, the profit margin is set and the product price is determined.

2. The function of demand for goods is analyzed.

3. A comparative analysis of the product with analogues is carried out, its competitiveness is assessed.

4. The price of the goods is determined taking into account competition factors. This text is an introductory piece.

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In this article, we will take a closer look at various methods pricing, which are most often and with great success used by merchants. How to choose the right pricing method for your company, and which methods deserve special attention- read on.

In this article you will read:

What are pricing methods
What kind market methods pricing is most effective in practice
How the pricing method is chosen, what criteria should be followed
Which commercial pricing methods deserve special attention
How to choose and match modern methods pricing tailored to your company

What is pricing

On the one hand, the pricing mechanism is a link between price and pricing factors, on the other hand, it is a way of pricing.

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Pricing sets itself the following tasks:

- ensuring the existence of the organization;

- gaining a leading position in the market;

- maximizing profits.

Basic pricing methods

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

The essence of the costs of this method assumes that the price of a product directly depends on the costs of production and distribution. The development of prices with the cost method is carried out according to the following scheme:

Product → technology → cost → price → value → customer.

Cost-oriented cost methods and their characteristics

Working with costly pricing methods allows you to achieve sufficient accuracy in determining production costs, their relationship with possible profit at different production volumes, as well as the level of sales, market prices. Among the costly pricing methods:

full cost method. When working with this method, pricing is assumed based on the costs of production and sale 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 output);

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

P - profit per unit of production.

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

The method of standard (normative) costs assumes the presence of a developed regulatory framework. The pricing formula for this method is as follows:

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

By working with this pricing method, cost management by variances is ensured, with control not only of costs, but also of profit. The disadvantage of this option is that it is difficult to develop norms for the expenditure of resources of all kinds.

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

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

C \u003d SPER 1 * RM,

RVAL = CPOS + P / SPER, where

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

RM is marginal profit.

Method of average costs (costs). Variable costs when working with this method are determined for each type of product by direct account. Are calculated fixed costs according to 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,

SKAR2 = ZPOST / QGH

Marginal cost method- used for the case of expansion of production. Marginal cost refers to the amount of costs that are associated with the production of an additional unit of output. Marginal cost refers to the amount of costs that are associated with the production of an additional unit of output. Marginal cost can be greater or less than average cost, depending on the nature and size of the demand for the good.

Target profit method (rate of return)– it is based on the selection of prices in order to obtain required size profit and determine the break-even sales volume. For this pricing method, you need to consider various price options, evaluate the impact on sales. Included in the active methods pricing involves monitoring changes in prices and costs using a break-even chart. The pricing policy is based on optimizing sales and profits. The calculation can be based on the following formulas:

QBU \u003d ZPOST / C - SPER

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

QBU - break-even volume of output in physical terms;

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

The required amount of profit can be determined on the basis of the break-even chart.

This method has the disadvantage that the possibility of sales depends on the price elasticity of demand. Price elasticity of demand refers to the degree of sensitivity of demand for a product to a change in its price, showing how much the change in demand is expected if the price changes by 1%.

I DEMAND \u003d I VOLUME / I PRICE \u003d ΔQ / Δ P * P / Q

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

Value pricing methods: advantages and disadvantages

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

customer → value → price → cost → technology → product

Value methods include:

Consumer Appraisal Method- allocation in the final price of premiums for reliability, quality with the publication of this information. This method is based on the way you compare your price with a competitor's price. The basis of this method is the persuasion of the client. When working with the method, there are additional costs for studying competitors, researching the market for goods and services.

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

CCTC.1<Ц< ЦКОНК.2

When working with this method, the price can be equal to, less than or greater than the price of competitors. Large organizations set approximately the same prices. In the work of small companies, it is planned to introduce small discounts by reducing overhead costs.

Discount pricing: for cash payments, bonus pricing, club cards, dealer discounts, etc.

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

The 4 Core Meanings of Perceived Value

1) “Value is “it is a low price”;

2) "Value -" this is the quality that I get for the money that I pay ";

3) "Value -" the 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 value is for consumers.

Step 2 - help customers articulate what value is to them and collect their key benefits, quality measures.

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

Stage 4 - translate the monetary and non-monetary value into a quantitative plane.

Step 5 - Determine the price based on customer value.

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

1. What benefits does the service provide to consumers as you offer it?

2. What is the cost-effective price?

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

How to sell below cost and earn more

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

A company in the soft drinks market organized a tender for the purchase of film for its bottle trays. It was necessary to purchase a specific film from a factory in Finland - 100 tons per month at a cost of no more than 930 dollars per ton.

The plant in Finland works with three Russian companies, offering sales of about the same volume each month. However, the plant is not ready to accept discounts - the input price is $1,000, and the average cost of production is $100. If the companies could guarantee the purchase of 200 tons per month, the company was ready for a price of $950, but no other discounts were provided. The companies tried to come to an agreement with the manufacturer on the 970, but failed. 2 companies decided to abandon participation in the tender, and the third businessman made the calculations:

Parametric pricing methods

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

- the method of marginal price - involves determining the price by one of the parameters. This method is used for approximate calculations at the stage of innovation development.

- price point method - the method of expert assessments is used. Pricing is based on an analysis of the main parameters of basic and new products - by adjusting the base price according to 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 the factors influencing it.

Market pricing methods appropriate in competitive markets

The use of market methods is most common for competitive markets. The composition of market pricing methods usually includes:

– 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' price offers.

This method assumes the advantage of not needing additional costs for studying demand. Since its level leads to a less significant impact on the price of products or services.

Among the methods that involve consumer orientation, there are methods with a focus on demand, as well as methods based on the perceived value of the product.

In this case, the main factor in pricing is not the cost incurred by the seller, but the perception of the buyers. Companies work using non-price methods of influence, on the basis of which consumers form a special idea of the value of the proposed products. In this case, it is necessary to match the price with 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 method of pricing assumes that the company considers the cost of production only as a limiting factor, below which it will not be economically feasible to sell.

But companies, when entering new markets, sometimes resort to dumping prices. This strategy is used to force competitors out of the market. But it must be taken into account that dumping is not justified for products that are positioned in the highest price segments.

We use a combined method

Gennady Kurnosov, Executive Director of OAO Yuzhuralkonditer, Chelyabinsk

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

How to act in case of a change in the cost price under the influence of certain factors, which led to negative consequences for profitability? It would make sense to raise prices. Although this decision is not so clear. Be sure to take into account distribution channels, market demand. Otherwise, the price increase will be illogical and will simply lose the distribution channel.

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

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

If all possible internal possibilities have been exhausted, but prices are lower than competitors, we decide to increase the cost. Based on experience, we can say that in such conditions, you can only rely on the local market and channels that contribute to reaching end-users.

Commercial Pricing Methods to Consider

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 from the background of analogues.

2) Consider your brand's competitive advantage

If you can understand the strengths and advantages of your company and the products offered, then the question of pricing methods will not arise. After all, you can achieve greater profitability through 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 company's service

Another pricing option is the sale of additional services or goods. This result was achieved by the Gillette brand - the machines themselves are very cheap, but the company receives the main income from consumables.

4) Setting the base price

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

5) Find the main function

A more massive demand for goods implies an increase in the attention of the target audience to the consumer properties of products - dimensions, materials, efficiency, etc. But the main importance is not always given to the properties that are on the surface.

6) Falling leader method

Within each category, certain markers are selected - products that attract the primary attention of buyers. Based on 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 to be effective 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 products 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 deployment method

Rows are unfolding in different directions - with the addition of new promising categories of goods, expanding the available range in the categories being sold. It is necessary to act according to this method carefully and carefully, following the principles of the marketing business concept.

9) The method of "cleansing" customers

Before adjusting the price of products, unprofitable customers must be identified. Sometimes taking care of some customers leads to violations of the logistics of the company and the entire market. Therefore, an audit on the ratio of profitability and unprofitability of customers is relevant here.

More expensive but better quality

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 enterprise. Our products and services to end users are relatively expensive. The buyer can always find cheaper options, but usually such a choice is accompanied by problems in the future operation of windows - more than 40 years.

We had a rule posted on the wall - "Decline in prices leads to death." We rely on work 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 regretted this.

The main parameter in evaluating our work is the number of clients who contact us on recommendations or repeatedly. It must be taken into account that there cannot be really high-quality service at cheap prices.

4 ways to set a price

Method 1 - the price is determined by cost

According to experts, this is not the best option. Indeed, in this case, it does not take into account the desire of buyers to pay.

2 way - market-oriented pricing methods

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

3 way - the method of pricing from hopelessness

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

4 way - pricing methods 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, give 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 moment.

4. Be persuasive. When a buyer is interested in justifying the cost of a product, you need to be able to explain the benefits to him and the reasons for such a price.

Information about the author and company

Alexander Petryaev, Chairman of the Board of Directors of EuroOkna, Moscow. EuroWindows 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. JSC "Yuzhuralkonditer" is engaged in the production and sale of confectionery products. 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, among other things, OJSC Rot Front, OJSC MFF Krasny Oktyabr, OJSC Babaevsky Confectionery Concern).

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

After determining and analyzing the demand function, cost structure and prices of competitors, it is time to make a decision about prices. To do this, it is necessary to choose a pricing method that would take into account the above limitations to the maximum extent. There are three groups of pricing methods:

pricing, oriented to own costs;

demand-driven pricing;

competition oriented pricing.

Having chosen and applied one of the pricing methods, it is necessary to make a pricing decision, i.e. set a specific price. Zdec nadlezhit ychect acpekty takie, kak pcixologicheckoe vozdeyctvie, vliyanie dpygix elementov mapketing-mikca, CHECK coblyudenie icxodnyx tseley tsenovoy politiki, a takzhe pazlichnye identify types of hazardous reactions nA ppinimaemyyu tseny.

Pricing Methods

cost methods.

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

1. Cost method taking into account the full (or average) costs of production is based on the definition of the full cost, including both variable and fixed costs. The essence of the method is to sum up the total costs: variable (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 his own costs. However, it has two big drawbacks:

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

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

2. Direct (or marginal) cost method is based on setting a price by adding a certain premium to the 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 repaid from the difference between the sum of sales prices and the variable costs of production. This difference is called "added" or "marginal" 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 function of cost is to set a floor on the initial price of a good, while the value of that good to the consumer determines its price ceiling.

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

3. The method of pricing based on break-even analysis and ensuring target profit is based on the fact that the enterprise seeks to set the price for its product at a level that would ensure the desired amount of profit. The break-even point is the intersection point of the total revenue curve and the total cost curve. At the break-even point, profit is zero. The main disadvantage of the break-even pricing method is that it does not take into account the relationship between the price of a product and actual demand.

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

5. Structural analogy method. The essence of this method lies in the fact that when setting the price of a new product, the structural formula of the price is determined according to its analogue. To do this, use actual or statistical data on the share of the main 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 analogue structure to a new product, an estimated price can be calculated.

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

A fundamentally new product, when it cannot be compared with the products being manufactured and the magnitude of demand is not sufficiently known;

Products manufactured under single orders with individual production features (construction, design work, prototypes);

Goods and services, the demand for which is limited by the solvency of the population (repair services, essential products).

Demand oriented.

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

Almost all enterprises, when forming the price of 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 goods 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 used independently in the first place.

This method makes it possible to implement a strategy of high prices (premium pricing or "cream 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 efficient production output, and financial results contribute to increasing the production of a new product and its supply on the market;

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

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

The use of this method involves a lot of work to study the market, demand, elasticity, the company must have 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:

Perceptions of price and "price affordability fork" for most buyers;

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

Possibilities 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 absence of the moment of purchase as a fact.

Trial sales may also take place. In this case, after determining the acceptable price range, it is varied based on the observation of consumer reaction to optimize the combination of "revenue-sales volume".

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

Focus on competitors.

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

Usually the firm is forced to build its policy taking into account the existence of competitors; it is generally aware of its competitors' experience in setting prices.

One of the methods of pricing in this case can be a focus on competitors. If there is a clear leader in the market, then the rest follow him. Moreover, price leadership can be dominant when there is a firm in the industry that has low costs, which means that there are clear price advantages over others. And there may be barometric leadership, when the firm's price changes are supported by other producers 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 a 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 nearest competitor. This is possible only in a market with homogeneous products. Based 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 a pure oligopoly, the enterprise has the practical ability to maintain its price for a long period.

Another method of determining the price in the specified range between the minimum and maximum is active pricing, 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 competitors and, nevertheless, make a profit.

This can be achieved by saving:

On the range of products by including in the "portfolio" of the company goods that have a common set of costs: the more costs that are common to the goods, the greater the synergy obtained from the expansion of the "portfolio";

Due to the scale of production: there is a tendency to reduce the value of costs as the volume of production increases;

Due to 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 way from the point of view of buyers. As a result, the firm is entitled to raise the price depending on the presence of such features, and the price premium must exceed the costs incurred in connection with the imparting of features to the product. Both consumer properties of the product itself and after-sales service can be unique.

Many products are sold at established standard prices while their 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 given to 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 the company's ability to innovate quickly.

In reality, the prices of different companies producing similar products can vary significantly. There are several reasons to explain these discrepancies. One of them is different production technologies. The production facilities of some companies are better adapted to fulfill a certain order, as a result of which the companies receive a cost benefit. Another reason could be the order load at the time of pricing. Underutilized firms may set moderate prices in the hope of receiving additional orders.

Another reason for the significant discrepancies in prices is the different methods of cost accounting and pricing. Many companies use valuation methods that do not reflect the real level of their costs. Traditional cost accounting methods distort reality in many cases and can cause serious problems in some situations 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 overestimation of costs, while for small-scale and technically complex products, the costs turn out to be overestimated. Thus, companies have no idea about the real profitability of certain products or sales.

Therefore, any company that implements more accurate cost accounting methods, such as by 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 on price.

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

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

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

- setting prices based on demand;

- setting prices for a new product;

– pricing within the framework of the commodity nomenclature;

- setting prices on a geographical 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 company 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 compared to similar ones on the market, the level and quality of after-sales service for the product etc., and, taking into account these circumstances, determines the relationship between the assessment of the usefulness of a 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 range offered, taking into account that purchasing an expensive product can sometimes be more expedient than buying 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"

Indicator	Copier "A"	Xerox "B"
Acquisition cost, rub.
Type of paper used	special
Productivity, copies / min
Startup time	instantly	instantly
Cost of copying, rub./copy
Maintenance cost (based on 10,000 copies per month), rub.

The difference in the cost of purchasing copiers is 305 rubles. Xerox 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 in the case of buying a copier "B" will be equal to the cost of acquiring it.

New Product Pricing Method. The strategic approach of the enterprise to the problem of pricing largely depends on the stage of the product life cycle. The stage of introducing a new product 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 those already on the market.

Setting the price of a genuine novelty. An enterprise that enters the market with a novelty protected by a patent sets either the price of "skimming the cream" or the price of introducing it to the market.

With a cream-skimming strategy, businesses first set maximum prices for a product to skim the cream off different market segments, and then lower it. At the same time, enterprises strive to maximize profits until the new market becomes an object of competition. The cream skimming method is advantageous 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 a market introduction strategy, the company, on the contrary, sets a relatively low price for a novelty product in order to attract more customers and gain a larger market share. However, when applying low prices, the management of the enterprise must determine as accurately as possible the possible economic consequences of this. But in any case, the risk is very high, as competitors can quickly respond to low prices and also significantly reduce the prices of their products.

Establishing a price for a new imitation product. Currently, pricing for goods and services already available on the market cannot be carried out without continuous improvement of the technical performance of the product and improvement of its quality. At the same time, the improvement in quality is accompanied by an increase in production costs, and hence an increase in prices for goods. To succeed in competition, the management of the enterprise needs to develop a strategy that ensures a constant reduction in prices for goods and services traditional for this market segment.

In market conditions, an enterprise must simultaneously solve two problems: firstly, to constantly improve the quality and improve the consumer properties of goods already on the market and, secondly, to 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 enterprise is obliged to make the right decision on the positioning of the imitator product in terms of quality and price.

Pricing method within the commodity nomenclature. The approach to pricing is fundamentally different if the product is part of the product range. In this case, the enterprise develops a price system that can ensure maximum profit for the product range as a whole. Price determination is complicated by the fact that different products are interconnected in terms of demand and costs and face different degrees of competitive opposition.

So, 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 kit, and what should be offered as complementary products. If a product is bundled with a large number of complementary products, the price may rise to such an extent that consumers refuse to buy. In the case of the sale of goods without complementary products, consumers may refuse to purchase them due to the need for an additional payment for the complementary products they are interested in.

In a number of industries, so-called mandatory accessories are produced for manufactured goods, which are used together with the main product. Manufacturers of essential items often charge relatively low prices for essential items and high prices for essential items. As a result, they manage to make high profits by selling these supplies. Other manufacturers, who do not offer their own mandatory supplies, have to charge a higher price for the main product in order to receive the same amount of gross income.

Geographic pricing method. The geographical principle of pricing is the establishment of different prices by the enterprise for consumers in different parts of the country. Transporting goods to a distant customer costs a business more than a nearby customer. Does it make sense to charge distant customers a higher price for a product in order to recover higher shipping costs, thereby 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 geographical basis:

- setting the price at the place of production of goods;

– establishment of a single price with the inclusion in it of the costs of delivery of goods;

– establishment of zonal prices;

– setting prices in relation to a basis point;

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

The last method of the above is used when an enterprise is interested in maintaining business contacts with a specific buyer or with a certain geographical area. Therefore, in order to ensure the receipt of orders, the company partially or fully pays the actual costs of delivering the goods. This price is also used to penetrate new markets and to maintain its position in markets with increasing competition.

Promotion pricing method. Under certain conditions, enterprises temporarily set prices for their goods below market prices, and sometimes even below costs. There are various options for these prices.

1. For some products, businesses can set them as "loss leaders" - to attract buyers in the hope that they will also buy other products at the regular price.

2. To attract more customers during certain periods of time, sellers use lower prices in sales, such as winter sales.

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

Method of setting prices at the level of competitors. The impact of the competition factor on the decision to set the price of a product depends on the structure of the market. Businesses that follow this tactic will set the price of their product slightly above or slightly below the level of competitors.

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

Current price method. In cases where costs are difficult to quantify, some enterprises consider the current price method, or the price usually received for a product in the market, to be the result of a joint optimal decision of enterprises in this 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 homogeneous goods, since an enterprise selling homogeneous goods in a highly competitive market has limited ability to influence prices. Under 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 particular contract. When determining a tender, they proceed primarily from the prices that competitors can set, and the price is determined at a lower level in comparison with them.

However, if the product has some qualities that distinguish it from competitors' products, or is perceived by buyers as a different product, the price for it can be assigned flexibly, without paying attention to competitors' prices.

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