Factors influencing pricing processes. Internal and external pricing factors. Classification of pricing decisions

Before all commercial and many non-profit organizations as one of the main problems of determining the price of their goods and services. In market conditions, pricing is a very multifaceted process, influenced by many factors.

The main of these factors are the following:

1. Demand for products. Demand has a significant impact on price. The higher the price of a product, the fewer products offered at that price can be purchased by buyers. The relationship between price and demand is described by the demand curve, which shows the inverse relationship between the price of a good and the demand for it. If the demand curve falls when prices rise, then the supply curve, on the contrary, rises. This is explained by the fact that the increase in prices is of interest to manufacturers in increasing sales volumes. The price at which supply and demand are equal is called the equilibrium price. This is the price at which the product will be sold. In fact, the ratio of supply and demand is constantly changing as a result of the impact on them of various factors.

To quantify fluctuations in supply and demand under the influence of various factors, the concept of elasticity is used. Elasticity gives an idea of the extent to which a change in price affects the level of demand.

Demand for various goods can be either elastic or inelastic. Inelastic demand goods include, for example, everyday goods, relatively inexpensive goods. In addition to elastic and inelastic demand, there is a special case when a percentage change in price leads to exactly the same change in sales and total revenues remains unchanged.

2. State regulation of prices. In an imperfect market, the emerging equilibrium price does not contribute to the optimal state and stability in society. Therefore, the state, through the establishment of regulated prices, purposefully creates new conditions for equilibrium. However, the following must be taken into account:
- The price set by the state cannot change quickly enough under the influence of changes in supply and demand, so there may be a shortage or overstocking of products;
- · a complete rejection of interference in the pricing process deprives society of the opportunity to influence the price level of industries and enterprises.

State regulation of prices is carried out in several main areas. Legislation restricts attempts to collude on prices and establish fixed prices by producers of goods, representatives of wholesale and retail trade.

No matter how "justified" these fixed prices are, they are considered illegal. Entrepreneurs who install them are severely punished, and huge fines are imposed on companies. Such violations are called "horizontal price fixing".

In order to avoid suspicion of such violations of the law, entrepreneurs should not: consult or exchange information with competitors about prices, discounts, terms of sale and credit; to discuss the prices, allowances and costs of any firms at professional industry meetings; negotiate with competitors to temporarily reduce production in order to maintain high prices.

The violation pursued by the law is also "vertical price fixing". It manifests itself in the fact that manufacturers or wholesale require the sale of their goods at specific prices, thus controlling retail prices. The state also prohibits price discrimination if it harms competition. Thus, manufacturers and wholesalers are obliged to offer their goods to different buyers - participants in the distribution channels on the same terms.

3. Production and sales costs. The price of a product is based on the costs associated with its production and sale, so their size largely determines the price level. The composition of costs includes costs both dependent (the level of use of raw materials and materials, the degree of utilization of production capacities, labor productivity), and independent (transportation tariffs, the cost of raw materials, materials, raw materials) from the activities of the enterprise.
4. Price competition. Competition pushes firms to improve their products, a detailed justification of the price of it. In this case, the firm can focus either on the seller's market or on the buyer's market. In the seller's market, the dominant position is occupied by the seller - the manufacturer of the goods. Under these conditions, it is easier for the firm to function, since its products are out of competition. In the buyer's market, the buyer dominates. And how well the company will be able to take into account the changing needs of the buyer and satisfy them in time depends on its well-being.

Price competition affects the price of a product through factors such as sectoral characteristics of production (for example, capital or labor intensive); product life cycle (at what stage of the product life cycle is the product); type of product (for example, serial or single); company image; volume of deliveries; relationship between the seller and the buyer (the nature of the relationship may be determined by the contract); conditions of payment.

5. State financial system, namely: the level and trends in the income of the population, the purchasing power of the monetary unit, the level and dynamics of inflation, changes in the parity of the national currency, etc.
6. Members of distribution channels. All of them seek to increase sales and profits and establish greater control over prices. The manufacturer influences the price of goods using a system of monopoly goods movement, minimizing the sale of goods through discount stores.

In order to reach the agreement of all participants in the distribution channel in decisions on prices, the manufacturer must: provide an appropriate share of the profit to each participant to cover his expenses and generate income; provide wholesale and retail in obtaining products at the lowest prices; offer special agreements, including discounts on the price for a certain period or a free lot of goods to stimulate purchases by wholesalers and retailers.

7. Consumers- an important factor that has a significant impact on prices. Any entrepreneur must see the deep relationship between price and how different consumers perceive it. The relationship between prices and the number of purchases made at these prices can be explained by two reasons: the influence of the laws of supply and demand and price elasticity, and the unequal reaction of buyers in different market segments to price. It was these reasons that formed the basis for dividing all buyers according to their perception of prices and orientation in purchases into four groups:
- Buyers who show great interest in choosing prices, quality, range of goods offered (this group of buyers is greatly influenced by advertising that reveals additional useful properties of this product), this is the so-called group of economical buyers;
- Buyers who have created for themselves an "image" of the product they want to own and are sensitive to all characteristics that bring them closer or move them away from the "image" are personalized buyers; they demand special attention and sensitive service;
- Buyers who support with their purchases small firms and make them according to a long established tradition, this group of buyers is called "ethical buyers"; they are willing to pay a higher price for the goods sold in this store, sometimes neglecting the wide range of goods in other stores;
- Buyers who are little interested in prices are "apathetic buyers".

Of all the factors listed above, the main impact on the movement of prices is exerted by the dynamics of the price of production of goods. The growth of labor productivity, the reduction in the cost of tools and raw materials per unit of output cause a decrease in the price of production, and vice versa. Therefore, one would expect that with the acceleration of the pace of scientific and technological progress, there would be a decrease in market prices. However, practice shows that in developed countries achievements of scientific and technological progress do not lead in a number of industries to a decrease in the cost of goods. This is because other factors, such as monopoly policy and inflation, are stronger.

For an effective business organization, it is necessary to have a clear understanding of what price is, pricing factors, what are the principles for pricing goods and services. Let's talk about how and what prices are made up of, what functions they perform and how to correctly determine the adequate cost of products.

The concept of price

The basic element of the economic system is the price. In this concept intertwined various problems and aspects that reflect the state of the economy and society. In the very general view the price can be defined as the amount of monetary units for which the seller is willing to transfer the goods to the buyer.

AT market economy the same goods can cost differently, and the price is an important regulator of the relationship between market entities, a tool competition. Its value is influenced by many pricing factors, and it consists of several components. The price is volatile and subject to permanent changes. There are several types of prices: retail, wholesale, purchasing, contractual and others, but all of them are subject to a single law of formation and existence in the market.

Price functions

A market economy differs from a regulated one in that prices have the opportunity to freely realize all their functions. The leading tasks that are solved with the help of prices can be called stimulation, information, orientation, redistribution, balancing supply and demand.

The seller, by announcing the price, informs the buyer that he is ready to sell it for a certain amount of money, thereby orienting the potential consumer and other traders in the market situation and informing them of his intentions. The most important function of establishing a fixed cost of goods is to regulate the balance between supply and demand.

It is with the help of prices that producers increase or decrease the quantity of output. A decrease in demand usually leads to an increase in prices and vice versa. At the same time, price-forming factors are a barrier to discounting, since only in exceptional cases can manufacturers lower prices below the cost level.

Pricing Process

Price setting is a complex process that takes place under the influence of various phenomena and events. It is usually carried out in a certain order. First, the pricing objectives are determined, they are closely related to the strategic objectives of the manufacturer. So, if a company sees itself as an industry leader and wants to occupy a certain market segment, it seeks to set competitive prices for its product.

The following are the main pricing factors external environment, features and quantitative indicators of demand, market capacity are studied. It is impossible to form an adequate price for a service or product without assessing the cost of similar units from competitors, so the analysis of competitors' products and their cost is the next stage of pricing. After all the "incoming" data are collected, it is necessary to select pricing methods.

Typically, a company forms its own pricing policy, which it adheres to for a long period. The final stage of this process is the final price fixing. However, this is not the final stage, each company periodically analyzes the established prices and their compliance with the tasks at hand, and based on the results of the study, they can reduce or increase the cost of their goods.

Pricing principles

The establishment of the cost of a product or service is not only carried out according to a certain algorithm, but is also carried out on the basis of basic principles. These include:

The scientific principle is not taken “from the ceiling”, their establishment is preceded by a thorough analysis of the external and internal environment of the company. Also, the cost is determined in accordance with objective economic laws, in addition, it must be based on various pricing factors.
The principle of target orientation. The price is always a tool for solving economic and social problems, so its formation should take into account the tasks set.
The pricing process does not end with the establishment of the cost of goods in a specific time period. The manufacturer monitors market trends and changes the price in accordance with them.
The principle of unity and control. State bodies constantly monitor the pricing process, especially for social significant goods and services. Even in a free, market economy, the state is assigned the function of regulating the cost of goods, to the greatest extent this applies to monopolistic industries: energy, transport, housing and communal services.

Types of factors affecting the price

Everything that affects the formation of the value of goods can be divided into external and internal environment. The former include various phenomena and events that the manufacturer of the product cannot influence. For example, inflation, seasonality, politics, and the like. The second includes everything that depends on the actions of the company: costs, management, technology. Also, pricing factors include factors that are usually classified by subject: manufacturer, consumers, state, competitors, distribution channels. Costs are separated into a separate group. They directly affect the size of the cost of production.

There is also a classification within which three groups of factors are distinguished:

not opportunistic or basic, i.e. associated with a stable state of the economy;
opportunistic, which reflect the variability of the environment, these include fashion factors, politics, unstable market trends, consumer tastes and preferences;
regulatory, related to the activities of the state as an economic and social regulator.

Basic system of pricing factors

The main phenomena that affect the cost of goods are indicators that are observed in all markets. These include:

Consumers. The price is directly dependent on demand, which, in turn, is determined by consumer behavior. This group of factors includes indicators such as price elasticity, buyers' reactions to them, market saturation. The behavior of consumers is influenced by the marketing activity of the manufacturer, which also entails a change in the cost of goods. The demand, and accordingly the price, is influenced by the tastes and preferences of buyers, their income, even the number of potential consumers matters.
Costs. When setting the price of a product, the manufacturer determines its minimum size, which is due to the costs that were incurred in the production of the product. Costs are fixed and variable. The former include taxes, wages, production services. The second group consists of the purchase of raw materials and technologies, cost management, and marketing.
Government activities. On the different markets the state can influence prices in many ways. Some of them are characterized by fixed, strictly regulated prices, while for others the state only controls the observance of the principles of social justice.
Merchandising channels. When analyzing price-forming factors, it should be noted the special significance of the activities of the participants in the distribution channels. At each stage of the promotion of products from the manufacturer to the buyer, the price may change. The manufacturer usually seeks to retain control over prices, for which he has various tools. However, the retail and wholesale prices are always different, which allows the product to move in space and find its final buyer.
Competitors. Any company seeks not only to fully cover its costs, but also to maximize profits, but at the same time it has to focus on competitors. Since too high prices will scare away buyers.

Internal factors

Those factors that the manufacturing company can influence are usually called internal. This group includes everything related to cost management. The manufacturer has various opportunities to reduce costs by looking for new partners, optimizing the production process and management.

Also, internal price-forming demand factors are associated with marketing activities. The manufacturer can help increase demand by advertising campaigns, creating excitement, fashion. To internal factors also includes product line management. A manufacturer can produce similar products or products from the same raw material, which helps to increase profitability and reduce prices for some products.

External factors

Phenomena that do not depend on the activities of the manufacturer of goods are usually called external. They include everything related to the national and global economy. Thus, the external pricing factors of real estate are the state of the national economy. Only when it is stable, there is a steady demand for housing, which allows prices to rise.

Politics is also an external factor. If a country is at war or protracted conflict with other states, then this will necessarily affect all markets, the purchasing power of the consumer and, ultimately, prices. External are the actions of the state in the sphere of price control.

Pricing Strategies

Given various pricing factors, each company chooses its own path to the market, and this is realized in the choice of strategy. Traditionally, there are two groups of strategies: for new and for existing products. In each case, the manufacturer relies on the positioning of its product and on the market segment.

Economists also distinguish two types of strategies for a product already existing on the market: a sliding, falling price and a preferential price. Each way of setting prices is associated with a market and marketing strategy.

Factors Affecting Pricing

Price is one of the means of the marketing mix used by the company to achieve marketing goals. Formation of consistent and effective marketing program requires coordination of pricing policy, product design, distribution channels and promotion methods. Changes in the parameters of any element of the marketing mix, as a rule, require a revision of the company's pricing policy. Thus, manufacturers who expect active support from their resellers in promoting their goods should provide for wider limits on trade margins. High quality positioning requires a higher price to cover high costs.

Professor Financial Academy under the government of the Russian Federation E.I. Punin notes: "For independent commodity producers operating in the market, regardless of the form of ownership, the question of prices is a matter of life and death."

Adoption marketing solutions in the field of setting prices for goods is a rather difficult task for the enterprise, which is due to the special role of price as a means of making a profit, as well as its specific functions in the marketing mix.

Pricing policy is closely related to the commodity, distribution and communication policy of the enterprise and is the final stage in the development of the marketing mix.

“Only marketing can set a price that is high enough for the producer and low enough for the consumer,” says the second precept of marketing.

Price- the amount of money requested for a product or service, or the amount of value that a consumer gives in exchange for the right to possess or use a product or service.

Price is the only element of the marketing mix that generates revenue. In addition, the price is one of the most flexible, easily changeable elements of it. At the same time, pricing and price competition is the No. 1 marketing problem.

At the corporate level, price is the main factor in long-term profitability, predetermining the methods for conducting price or non-price competition:

- price competition leads to the establishment of prices below the prevailing market level and is associated with the achievement of advantages in minimizing costs;

– non-price competition allows prices to be set at the level of prevailing market prices and even above them, and is oriented towards a policy of differentiation.

The essence of pricing policy in marketing- the establishment of such prices for the goods of the enterprise and such a variation by them depending on the position in the market in order to seize a certain market share, get the planned amount of profit, etc.

The objectives of the pricing policy of the enterprisecan be:

long-term or short-term profit maximization;

the economic growth;

market stabilization;

reducing consumer sensitivity to prices;

maintaining leadership in prices;

preventing the threat of potential competition;

maintaining trade loyalty;

improving the image of the enterprise and its products;

increasing the interest of the buyer;

strengthening the market position of the assortment;

capture a dominant position in the market.

For successful work in the market, it is very important to correctly consider the factors that affect the price level.

Marketers of foreign firms usually arrange them in ranked order.

1. Production costs.

2. Prices of competitors exporting to a given country.

3. Prices of local competing firms.

5. Transport costs.

6. Surcharges and discounts in favor of the intermediary.

7. Import duties and other charges.

Determining the price of a product is an art based on knowledge and consideration of numerous internal and external factors (Table 1.1).

Factors Affecting Pricing in Marketing

The value of production costs defines the minimum price a company can charge for its product and refers to internal factors, affecting pricing. The company seeks to set a price that would cover not only the costs of production, distribution and marketing of goods, but also would provide a proper rate of return for the effort and risk involved. A company's costs can be an important element in a pricing strategy. Companies that achieve low costs can set more low prices, which leads to a significant increase in sales and profits, i.e. and costs set a price floor . Market and demand are external factors influencing pricing, set their upper limit.

The degree of freedom of price formation varies depending on the type of market. Economists have identified 4 types of market, each of which has its own requirements for pricing.

Pure competition takes place in a market of homogeneous goods with a large number of buyers and sellers, none of which has much influence on the formation of the market price. Sellers in such a market do not spend much time developing marketing strategy

Monopolistic competition takes place in a market with a large number of buyers and sellers and different prices for one type of product. Sellers strive to individualize offers for different customer segments and, in addition to price, use trade marks, advertising and personal selling.

Oligopolistic competition takes place in a market with a small number of sellers, each of which is highly sensitive to the pricing policy and marketing strategy of the other. Products can be homogeneous (steel, aluminum) or heterogeneous (cars or computers). There are few sellers in the market because it is not easy for new sellers to enter such a market. Each seller constantly monitors changes in the strategy and actions of a competitor

Pure monopoly takes place in a one-seller market. The types of monopolies are state monopoly, private regulated monopoly and private unregulated monopoly.

Nowadays, the price is one of the most important elements of any product, as a result, when building a marketing strategy for a company, a specialist must take into account all existing pricing factors.

However, many people who are not professionally involved in this area, but who are unable to hire a qualified specialist, should correctly understand what these factors are. In other words, you need to know how much the price affects the work of the company, what pricing factors exist, and also how the cost of a particular product is correctly formed.

Price - what is it?

There are at least four points of view on the above question, depending on which specialist voices them:

Economist- the interaction of two market forces, such as supply and demand.
Accountant- the price should cover the financial costs that were allocated for the manufacture of a particular product, as well as ensure profit for the company.
Consumer- an indicator of the value of a product.
Salesman- opportunity to get competitive advantage in front of similar establishments.

Pricing factors concern not only various commercial organizations, but in addition, they are also used by non-profit companies, such as trade and industrial associations, charitable foundations and a number of other structures. For example, in the process of pricing charitable foundations A wide variety of target levels of donations can be set, as a result of which patrons will be offered various statuses or conditions, depending on how much they were willing to donate to this fund.

Factors

Determining the price is a rather laborious procedure, because in order to establish a really correct and at the same time competitive price for a particular product, you need to take into account a variety of pricing factors, such as:

Product cost. The amount of fixed or variable costs that the company will incur in the process of producing each unit of output. The cost of producing a product or providing a particular service is the most important factors pricing, because if the selling price is lower than the cost of a particular product, the company will ultimately incur losses.
Marketing. The price should be as close as possible to the target market, consumer, as well as the distribution channels through which the product will be sold.
Positioning. The cost will allow you to form the correct image of a particular product or service, classifying it as an economy segment, mass market or luxury.
Product life cycle. At different stages of the life cycle, a different approach to the value strategy should be used, because there are different goals.
Competition. The cost of goods should be chosen in accordance with the price competitive environment, as well as price clusters that have formed in the current market.
Predicting the actions of competitors. It is necessary to correctly predict the consequences that certain decisions in the field of pricing can lead to. For example, if you set too low cost, then in this case a price war may begin, which is unlikely to be interesting for any of the parties.
Consumer price perception. A competitive price is built on the basis of consumer perception, as too cheap product may seem to buyers simply of poor quality, while an inflated price has the ability to scare away a potential consumer.
The state of the economy. While the economic crisis is in effect, goods that are in the economy segment become more in demand, and at the same time, the sensitivity of buyers to the cost of products increases.
Legal regulations. From a legal point of view, in the country where the products are sold, there may be certain laws that restrict price discrimination or may establish a maximum possible threshold for the cost of a certain category of products.

How is the price formed?

The correct pricing mechanism looks something like this:

The goals of this procedure are determined.
The cost of production is calculated, as well as the costs of possible growth scale of production.
The point at which the company operates without loss is determined.
Estimated demand for a particular product from outside target audience.
The elasticity of demand is estimated, and the relationship between profits, costs and demand for goods is also determined.
It evaluates how the value of the product is perceived in the target market.
The prices for similar products offered by competitors are analyzed.
Price positioning in relation to competitors is determined.
A clear pricing strategy is approved, as well as tactical measures.
The final price is set.

Deciding on a goal

The objectives that the pricing mechanism will pursue fall into two categories:

Marketing.
Financial.

The financial goals include target values sales and profits, while marketing looks at the core needs of the company in terms of how the product is positioned in the industry and how the image of the product is perceived.

The financial goals pursued by the pricing process are formed in terms of the maximum possible maximization of profits, income, as well as the expansion of sales. In addition, financial goals include achieving a certain level of sales and profits, as well as a certain level of profitability of the product being sold.

If we are talking about marketing goals pursued by the pricing process, then we can say that they represent a continuation of the positioning strategy and the subsequent promotion of the product, and are also defined in terms of maintaining or even increasing market share. They also consider interaction with competitors, help build a certain price positioning or reach the level of test purchases and attract a certain percentage of the target audience to the product offered by this company.

What are pricing decisions?

Considering existing species pricing, the marketing specialist will have to make three important decisions:

Determine the pricing technique.
Choose a pricing strategy.
Establish a pricing policy in terms of tactical pricing measures.

The pricing strategy defines the principles of long-term management of the cost of the product, while it is worth noting the fact that this strategy should not be contrary to the marketing strategy of the product, as well as determine the price positioning in relation to competitors. In addition, this determines pricing strategies in sales channels, as well as the need for price discrimination. The types of pricing determine the technology for calculating the cost of products, taking into account the existing costs, as well as the scale of production. The definition of tactical pricing measures already concerns the issues of pricing policy in relation to all kinds of promotions associated with a temporary decrease in the cost of individual sales channels, the introduction of discounts or package pricing conditions.

Peculiarities of price formation in the world market

Price and pricing in the world market are distinguished by a number of features and provide for the most detailed study of all factors that in one way or another affect the formation of product costs, such as general order, and exclusively applied. In particular, the chosen value will determine how much producers will be able to recover after the sale of products, and what not, what level of profit and income can be ensured, and also where resources will be subsequently directed. Among other things, price and pricing determine whether there will be incentives for further expansion. externally economic activity companies.

In a constantly changing market economy, pricing in foreign trade, just like in the domestic market, is carried out under the influence of a certain market situation. In principle, the concept of price is similar both for the characteristics of the external market and for the characteristics of the internal one. Pricing strategies involve many factors and must be chosen according to specific market conditions as well as careful forecasts for the future.

Price, including international trade, - This certain amount funds that the seller is going to receive by offering a certain service or commercial product. The coincidence of these requirements depends on a number of conditions, which are the factors of the pricing strategy, while they can be distributed among themselves according to the level and scope or nature.

How to determine the cost?

As mentioned above, the value is determined in accordance with the conditions of competition, as well as the ratio and state of supply and demand in the current market. However, in reality, when the international environment is considered, pricing in market conditions becomes somewhat different. So there are five more to consider. additional groups pricing factors.

Supply and demand

As you know, the balance of supply and demand in the world market is felt by the subjects foreign trade much sharper than how this ratio is felt by suppliers in the domestic market. Indeed, in this case, you need to see the world market in front of you, and then continuously compare your own production costs not only with the value that was determined by pricing in the conditions of the domestic market, but also compare it with world prices.

The manufacturer, i.e. the seller of goods on the foreign market, is constantly in the mode of the so-called "price stress", but at the same time international market there are more consumers.

Mobility

Factors influencing pricing should also take into account the fact that in the conditions of the world market the factors of production are less mobile. It is unlikely that anyone can argue with the fact that the freedom of movement of capital, services, goods and work force in this case, much less compared to the framework of a particular state. Indeed, in the first place, the factors affecting pricing take into account the fact that this movement is constrained by national borders, as well as relationships in the monetary sphere, which prevents the normal alignment of profits and costs for all these elements. Accordingly, all this must be taken into account when setting the price on the world market for their products.

What are world prices?

World prices are the cost of conducting large export-import transactions that are concluded in the commodity markets of various countries. The concept of "world commodity market" provides for a set of stable, repetitive purchase and sale operations certain services or marketable products that have organizational international forms or that are expressed in systematic export-import transactions by large consumers and suppliers. In the current world trade, the features of pricing include, first of all, supply and demand, since the market price depends on them the most.

Consumers

If we talk about the practical impact on the cost of the proposed product, then the effective demand of consumers is taken into account, that is, in other words, whether the price audience has money to purchase certain products. In this case, the following are taken into account external factors pricing, as the quantity of goods that the consumer can buy, as well as the usefulness of this product for him and its consumer qualities.

Salesman

On the supply side, there are also pricing factors of their own. First of all, pricing issues should consider how much of the product is offered by the company on the market, as well as what are the costs of production or circulation in the process of selling the product on the market. Among other things, the prices of resources or the means of production of the corresponding goods are considered.

A common factor is the substitution of the proposed product by some other one, which will also fully satisfy the needs of buyers. Among other things, the level of world prices is significantly influenced by the currency of payment, the terms of payment, as well as a certain number of additional conditions including economic and non-economic ones.

distortion

Often, specialists who regulate pricing encounter such situations as a distortion of the supply-demand ratio. When the product appears extremely high demand, at which products produced at the national price in the worst conditions begin to be thrown into the market, they determine the world price for a certain time, and the price is quite high. In addition, it also happens that supply significantly exceeds demand, as a result of which the bulk of sales falls on those trading entities in which there are Better conditions production, but at the same time a lower price is set.

It should be noted that the pricing policy includes a lot interesting features. For example, if some of the largest manufacturers in their country are the largest supplier of products, this does not mean at all that they will be able to achieve the same success in the world market. In the predominant majority of cases on the current world market, most of the goods are sold by countries that, from an economic point of view, can hardly be called powerful and large states.

When interacting with market prices, including foreign trade prices, it is necessary to correctly consider the difference in them and, at the same time, take into account the positions of individual parties, as well as the current market situation. First of all, there is such a thing as the seller's price, at which the cost is formed by the seller and is somewhat overpriced, as well as the buyer's price, which he is willing to pay and which, accordingly, is lower.

In addition, it must be understood that, depending on the market situation, there is a seller's market, in which, due to a large amount of demand, prices are entirely dictated by the seller, as well as a buyer's market, in which there is too much supply and the price situation is opposite. However, such a market situation is constantly changing and is reflected in the price, as a result of which it is she who becomes the main object of study and constant monitoring, since otherwise, very, very serious mistakes can be made when pricing.

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Federal Agency for Education

State Educational Institution "St. Petersburg State Polytechnic University"

Cheboksary Institute of Economics and Management (branch)

department accounting, analysis and audit

Test

on pricing

Option 20

Completed by a student

Correspondence department

2 courses 080105sh / specialty

Finance and credit

Pavlova Nadezhda Anatolievna

Checked by teacher

Evgrafov O. V.

Cheboksary 2010

1. The price system and the law of supply and demand. Influence of supply and demand dynamics on price levels

2. The concept and types of elasticity of demand

3. State regulation of prices

Bibliography

1. The price system and the law of supply and demand. Influence of supply and demand dynamics on price levels

demand supply pricing

The economy has many various kinds prices forming a system that is in constant development, flexible and dynamic, which is due to constantly changing conditions for the production and marketing of products and goods. The prices that make up the system are closely interconnected and interdependent.

First, they are formed on a single methodological basis. The methodology is understood as a set general principles, rules and pricing methods. The pricing methodology is the same for all levels of management (enterprise, industry, sphere of commodity circulation), so it does not depend on who sets prices and for what period. Availability methodological framework - necessary condition creating a pricing system, it is a pricing strategy for everything economic complex, involving the development of the concept of pricing, the mechanism for its implementation and the creation of a management system for this process.

One of the important methodological elements is the principles of pricing, which are permanent basic provisions that determine the nature of the formation of the price system. In the economic literature, the following basic principles are distinguished: scientific character, target orientation, continuity, unity of pricing and control.

The price system is characterized by such indicators as level, structure, dynamics.

Price level - absolute quantitative expression of the price in money.

Price structure - this is the ratio of individual elements (cost, profit, taxes, allowances) in the price, that is, their share in its total value, taken as 100 percent.

Price dynamics represents the direction of change in price levels (increase, decrease, rate of change).

Prices are classified according to various criteria and, depending on what principle of classification is taken as a basis, they are divided into types and varieties.

The offer of a good or service is the willingness of a producer to sell a certain quantity of a good or service at a certain price in a certain period of time.

Supply is the quantity of a good or service that sellers are willing to sell at a given price over a given period of time.

The relationship between volume and supply price is expressed in the law of supply.

Law of Supply: Other things being equal, the quantity supplied of a good increases if the price of a good rises and vice versa.

A change in the volume of supply occurs if all factors determining the supply of a product remain constant, and only the price of the product in question changes. Thus, if the price changes, then there is a movement along the supply line.

When other factors that determine the supply change, and the price of the goods is constant, the supply itself changes, and the supply line on the graph shifts.

Factors influencing offers:

change in prices for factors of production;

· technical progress;

· seasonal changes;

taxes and subsidies;

Manufacturers' expectations

Changes in prices for related products.

Demand for a product or service is the desire and ability of a consumer to buy a certain amount of a product or service at a certain price in a certain period of time.

Distinguish:

- individual demand is the demand of a particular subject;

- market demand is the demand of all buyers for this product.

Demand is the quantity of a good or service that consumers are willing to buy at a given price over a given period of time.

A change in quantity demanded is a movement along the demand curve. Occurs when the price of a good or service changes, other things being equal.

Law of demand: ceteris paribus, as a rule, the lower the price of a product, the more the consumer is willing to buy it, and vice versa, the higher the price of the product, the less the consumer is ready to buy it.

Factors affecting demand:

consumers' income

tastes and preferences of consumers;

prices for interchangeable and complementary goods;

Stocks of goods at consumers (expectation of consumers);

· product information;

time spent on consumption.

With a change in other factors and a constant price of the goods, a change in the demand itself will occur. On the graph, when demand changes, the demand curve shifts.

A shift in the demand curve is caused by a change in one or more variables that affect the shape of the demand curve. As a result of a change in demand, consumers are willing to buy more (or fewer) goods than before at the same price, or are willing to pay a higher price for the same quantity of goods.

2. The concept of elasticity of demand

Supply and demand depend on many factors. Their change entails a corresponding change in supply and demand. This is the concept of elasticity.

Elasticity is a measure of the response of one economic variable to a change in another. AT economic theory consider the elasticity of supply and demand. The elasticity of demand for a good is the percentage of a change in price or income and a change in demand.

Price elasticity of demand

It shows the extent to which the consumer reacts to price changes. When measuring the percentage change in economic values, the usual method of calculation is not applicable, since the same quantitative change in the other direction gives a different percentage. For example, if the quantity demanded for a good was 10,000 units and then decreased by 2,500, then there was a 25% change in demand. However, an increase in demand for a given commodity from 7,500 units to 10,000 would result in a 33% increase in demand. Therefore, in economic theory, a more universal method is used, called the Allen midpoint formula.

There are several types of price elasticity of demand, depending on the value of the elasticity coefficient.

E > 1 - elastic demand (for luxury goods);

E< 1 - неэластичный спрос (на предметы первой необходимости);

E = 1 - demand with unit elasticity (depends on individual choice);

E = 0 - perfectly inelastic demand (salt, medicines);

E - perfectly elastic demand (in a perfect market).

One cannot speak of elastic or inelastic demand curves, since the elasticities are valid for individual points on the demand curve. On each such demand curve, as a rule, there are points with elastic and inelastic demand. As an exception, only perfectly elastic and perfectly inelastic demand curves are considered, on which each point represents the same elasticity.

Income elasticity of demand

This is a numerical parameter that shows how the consumer reacts to changes in his income while prices remain unchanged.

The value of income elasticity is closely related to the concept of normal goods and goods of inferior quality. For normal goods, an increase in income causes an increase in demand. Since in this case income and demand change in the same direction, the income elasticity of demand is positive. Conversely, for inferior goods, an increase in income causes a decrease in demand. Income and demand move in opposite directions, so the income elasticity of demand is negative in this case. For certain groups of goods (salt, matches), demand does not increase with an increase in income, elasticity is zero.

3. Gostate regulation of prices

The influence of the state on pricing processes has become one of the important and systematically applied methods of economic policy in developed countries.

The existing system of state regulation of prices, along with other forms of sectoral state policy, affects the cost proportions and distribution of national income between individual sectors and categories of the country's population. The role of this form of regulation has sharply increased in recent decades due to rising inflation. Pricing policy is becoming one of the most important areas of economic activity of the state. An integral part of this policy should be considered the state's attempts to influence the state of the economic situation in individual commodity markets through price regulation. Price regulation is becoming a widespread state practice.

Under these conditions, state regulation in the field of prices usually pursues the following goals:

1. Slow down the inflationary rise in prices as a result of the depreciation of money during the war period, eliminate disproportions in prices for certain types products and services.

2. Achieve the necessary ratios in the development of production.

3. Make it difficult to grow wages, which increases in proportion to the increase in prices.

4. Subsidize state-controlled production, protect backward sectors of the economy from foreign competition (primarily agriculture), and promote foreign economic activity.

5. Mobilize the budgetary funds necessary for the implementation of socio-economic activities.

Some economists argue that the regulation of the price side of the state in market conditions is unacceptable. However, the experience of countries with a market economy convincingly shows that the state has not withdrawn and is not withdrawing from control over prices in the domestic market, but solves these problems by methods inherent in the market mechanism.

State regulation of prices is an attempt by the state, through legislative, administrative and budgetary and financial measures, to influence prices in such a way as to contribute to the stable development of the economic system as a whole, i.e. to neutralize cyclical fluctuations in reproduction processes through prices. Depending on the specific economic situation, price regulation is of an anti-crisis and (or) anti-inflationary nature.

It is known that the price system is one of the most important elements of a market economy, and it is naturally connected with other elements of the market mechanism and reacts to their changes. State regulation of the economy through changes in budget expenditures, taxes, interest rates for loans and other economic levers is manifested in changes in costs and product prices and affects reproduction processes.

In Russia, in conditions of a serious imbalance in the economy, the role of the state is to create market structures in order to ensure normal conditions for the development of the market: the formation of entrepreneurship, the adoption of antimonopoly legislation, etc. Conducted by the state, in particular, antitrust policy should ensure the removal of artificial restrictions and the development of competition in all sectors and sectors of the economy, its support and all encouragement and the development of market pricing on this basis.

It should be noted that price liberalization does not weaken, but rather enhances the role of the state in the implementation of pricing policy. It does not consist in setting specific prices, but in influencing, with the help of economic measures, the adoption by commodity producers of optimal decisions on prices, in providing them with methodological and methodological assistance, developing legal regulations by pricing.

The goals of state regulation are to prevent an inflationary rise in prices as a result of a steady shortage, a sharp rise in prices for exploited raw materials and fuel, monopoly of producers, and to create normal competition that promotes the introduction of scientific and technological progress into production. At the same time, an important task is to achieve certain social results, in particular, maintaining a decent living wage, providing people with the opportunity to purchase essential goods in sufficient quantities.

Measures of influence on producers from the side of the state can be as direct- by setting certain pricing rules, and indirect- through such economic mechanisms as the financial and credit mechanism, remuneration, taxation, etc.

With direct methods of price regulation, the state directly affects prices by regulating their level, setting profitability standards or standards for the elements that make up the price, or by other similar methods.

Indirect methods of price regulation include regulation of the discount rate of interest, taxes, incomes, the level of the minimum wage, etc. These methods are manifested in the influence of the state not on the prices themselves, but on the factors that affect pricing, which are of a macroeconomic nature.

Optimal is a flexible combination of direct and indirect methods of price regulation by the state.

As a rule, the state directly regulates prices for those types of products and services that form the framework of the price system. These are prices for energy carriers, transport and communication services, housing and communal services, etc., which have a significant impact on the entire economy of the country. By setting and regulating prices for these goods and services, the state has a decisive influence on the entire price system.

Direct state regulation implies the need to correct the market and supplement the market mechanism with the centralized state policy by controlling the most important market parameters. In the conditions of an imperfect market economy, which takes place in Russia, the emerging equilibrium price does not contribute to achieving stability in the economy. Therefore, the state, through the establishment and regulation of prices, must purposefully create conditions for equilibrium.

By pursuing an active pricing policy, the state can ensure the profitability of a business that is unprofitable for a purely market economy (long-term scientific and technical programs, military-industrial complex , transport, communication, public utilities and etc.). A similar result can be achieved both through the use of contractual prices, and through the placement of government orders and purchases.

Of course, with excessive state regulation of prices, market mechanisms weaken and there is a danger of losing market benchmarks for comparing costs and results, since the main market parameters are strongly influenced by non-market factors. Not associated with competitive market and the price set by the state cannot change quickly enough depending on changes in supply and demand. In this case, as in a planned economy, either a shortage or an overstocking of the market with unmarketable goods is formed.

In the event of a complete withdrawal of the state from participation in the formation of prices and their regulation, the foundations of the economy are destroyed, the state loses one of the most important methods of combating monopoly, and market relations and financial position many enterprises become quite unstable.

In a market economy, both excessive enthusiasm for setting and regulating prices on the part of the state, and a complete rejection of such regulation, primarily in relation to the products of efficient, but complicating monopoly enterprises, are unacceptable. In the period of transition for society, the need for direct state regulation of prices increases.

State regulation of prices is also carried out by guaranteeing producers the level of selling prices and by subsidizing production costs.

Price regulation by subsidizing production costs in order to increase labor productivity in agriculture implies the provision of government subsidies to producers for the purchase of fertilizers, agricultural machinery, the purchase of high-quality seeds, land reclamation, etc.

In addition, the state maintains the ratio between the prices of agricultural products and goods purchased by farmers. This function is carried out by the Ministry of Agriculture.

Along with the methods of direct regulation of prices, the state carries out indirect regulation, i.e. affects the pricing process and a number of indirect measures. Such measures have been used in Western European countries since the beginning of the 20th century, when inflationary price increases became a stable trend. Measures of indirect price regulation, as a rule, are aimed at changing market conditions, at creating a certain position in the field of financing, currency and tax transactions, and in general - at establishing an optimal balance between supply and demand.

The methods of indirect price regulation include public procurement, the tax system, the regulation of money circulation and credit, the policy of public investment and the regulation of public spending, the establishment of depreciation rates, etc. With these measures, the state seeks to establish a balance between supply and demand and thus contribute to a more even and slow price growth throughout the economy. Indirect methods of price regulation are manifested in the impact not on the prices themselves, but on the factors influencing pricing, factors that are of a macroeconomic nature.

State regulation of prices varies depending on the state of the economy. It intensifies in crisis situations- during periods of accelerating inflation, growing scarcity of certain products, the need for rapid economic restructuring and weakens as the country emerges from the crisis.

In countries with dynamic, balanced market economies, prices are regulated to a lesser extent than in countries with unbalanced and unstable economies. As the economy stabilizes, the scope of state regulation is reduced and there is a gradual transition to free pricing.

As soon as conditions for competition are created in the market, state regulation of prices is often cancelled.

The tax system has a significant impact on the level and dynamics of prices. Price dynamics and inflation rates directly depend on the size of taxes. The higher the taxes, the faster prices rise, the wider the inflationary scope. Any manufacturer tries to transfer the tax through the price of goods to the consumer. At the same time, the state, receiving large revenues, increases its expenses. Hence, in order to reduce inflation, slow down the rise in prices, the state must reduce tax rates. Modern tax policy in the developed countries of the world is directed towards lower taxes. In the United States, for example, the share of income taxes in federal budget revenues does not exceed 8%, while in Russia it was about 20% until recently. The latest measures of the Government of the Russian Federation are aimed at reducing the tax burden, primarily for manufacturers of goods.

Direct methods of price control should not be opposed to indirect ones, but combined with them. The general anti-inflationary policy and related measures to indirectly influence pricing processes in this case are supplemented by direct methods of state regulation. The state, by establishing certain modes of price movement, by "freezing" or "blocking" them at a certain level, by means of control over individual items of production costs, interferes in the decisions of enterprises and firms regarding the level of prices for products.

Efficiency various methods pricing depends on right choice conditions for their use. The method of price regulation through the level of profitability to production costs, which has become widespread in our economy, is practically not used in world practice, since enterprises are not interested in reducing production costs. At the same time, the level of prices abroad is regulated through restrictions on obtaining increased profitability on invested capital.

The effectiveness of state price regulation largely depends on its interaction with other measures of influence on the economy. Thus, price blocking, the introduction of fixed prices, changes in income tax rates, as a rule, should be combined with wage regulation.

As already noted, one of the important areas of state price regulation is price control for the products of monopoly enterprises. At the same time, state regulation of prices for products manufactured by monopoly enterprises was introduced in order to prevent, limit and suppress violations of state price discipline and abuses associated with the dominant position of goods on the market.

Monopoly enterprises are controlled in terms of their compliance with existing rules pricing and justification for making a profit on the range of goods for which these enterprises are monopolists.

At the same time, control is exercised by federal or local authorities which are entrusted with the functions of price regulation and control over their application.

Products subject to state price regulation are sold by monopoly enterprises at regulated prices. Free market prices are set for other products, goods and services.

If enterprises-monopolists violate the antimonopoly legislation, expressed in unreasonable overstatement of free prices for their products, state regulation of prices is applied to their goods.

In cases where monopolistic enterprises violate state price discipline, they are subject to economic and administrative measures provided for by the Law of the Russian Federation “On Competition and Restriction of Monopolistic Activities in Commodity Markets”. Such measures include the transfer to the budget income received from the overstatement of prices and tariffs, as well as fines in the same amounts.

AT Russian Federation a certain procedure for applying economic sanctions for violating state price discipline has been developed and is in effect, aimed at strict compliance by all Russian enterprises current legislation and others normative documents by pricing. Thus, economic sanctions are applied to enterprises that have committed violations of state price discipline in the sale of products, goods and services and received excessive amounts as a result of this, consisting in the indisputable withdrawal of these amounts from the profits of enterprises to the budget. In the same amount, an additional fine is collected from the enterprise.

Violations of state price discipline, in particular, include:

Overstatement of state-regulated prices and tariffs for goods and services, including fixed prices and tariffs, marginal levels of profitability, marginal price and tariff increase coefficients;

Overstating the established allowances (margins) to prices and tariffs, charging unforeseen allowances, as well as failure to provide established discounts;

The use of free wholesale (selling) prices, tariffs, markups and allowances that are not agreed with consumers in the prescribed manner;

Overpricing of products for which, due to design or technological shortcomings, consumer properties have not been achieved, adopted when agreeing on their level, etc.

Control over compliance with state price discipline in all sectors of the Russian economy is carried out by the Price Inspectorate of the Price Department of the Ministry economic development and Trade of the Russian Federation and pricing and price control authorities of the republics within Russia, territories, regions, autonomous entities, cities of Moscow and St. Petersburg. In trading establishments and Catering price control is also carried out by the bodies of the State Inspectorate for Trade, Quality of Goods and Consumer Rights Protection in accordance with the established procedure.

An enterprise that independently revealed a violation of state price discipline and received excessive amounts as a result, regardless of its financial condition contributes them to the budget at the expense of profit, which usually remains at the disposal of the enterprise after paying taxes and other obligatory payments. At the same time, it is mandatory for this enterprise is a simultaneous reduction in the price of their products, goods and services.

The amounts received as a result of violation of state price discipline and subject to withdrawal to the budget revenue are determined as the difference between the actual proceeds from the sale of products, works and services at inflated prices and tariffs and the cost of these products, works, services at prices and tariffs, formed in accordance with with current legislation.

For monopolistic enterprises, as well as for other enterprises, for the products of which marginal levels of profitability are established, the amounts received by exceeding the marginal level of profitability as a whole for groups or types of products, goods and services are subject to withdrawal.

Price control with the application of economic sanctions for violating state price discipline applies to all business entities located on the territory of Russia, including enterprises with foreign investment engaged in production, trade and other commercial activities.

It should be noted the urgent need for direct state control, primarily over monopoly markets. Where a state monopoly is recognized as natural, for example, in the defense industry, fundamental science, etc., real, full-scale administration is appropriate. This includes both current and long-term planning of production, costs and prices, and direct control over quality and consumer properties goods and services, and guaranteed logistics, and centralized public procurement. Quite acceptable administrative regulation markets for those goods of inelastic demand that belong to the monopoly of the state. It can be implemented through the introduction of hard excise rates, price planning or some other means.

World practice knows many combinations of various methods of market regulation. Some methods - both economic and administrative - play the role of a supporting structure in state policy and are aimed at achieving the set goals, while others act as shock absorbers and are designed to dampen the negative effects that inevitably accompany state regulation of a market economy.

Bibliography

1. Digest of economic theory // Sokolinsky V.M., Vasilyeva E.N. -M., Analytics-Press, 1998

2. Pricing: tutorial// Salimzhanov I.K., Portugalova O.V.-M., Finstatinform, 1996

3. “Price policy and impact on economic processes” // Economist No. 5 1998

4. Pricing: textbook // Shevchuk D. A. // 2008.

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Factors influencing pricing processes. Internal and external pricing factors. Classification of pricing decisions

The concept of price

Price functions

Pricing Process

Pricing principles

Types of factors affecting the price

Basic system of pricing factors

Internal factors

External factors

Pricing Strategies

Price - what is it?

Factors

How is the price formed?

Deciding on a goal

What are pricing decisions?

Peculiarities of price formation in the world market

How to determine the cost?

Supply and demand

Mobility

What are world prices?

Consumers

Salesman

distortion

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1. The price system and the law of supply and demand. Influence of supply and demand dynamics on price levels

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