The pricing policy includes. Formation of the pricing policy of the enterprise. The concept of the pricing policy of the enterprise

Price in terms market economy- one of the most important factors determining the profitability of the enterprise. Therefore, the pricing policy should be well thought out and justified. Pricing policy - these are the general goals that the company is going to achieve with the help of prices for its products, and a system of measures aimed at this. To correctly formulate a pricing policy, a firm must be clear about the goals that it will achieve through the sale of a particular product. When choosing a pricing policy, it should also be taken into account that although the global goal of any enterprise is to make a profit, however, such goals as protecting one's interests, suppressing competitors, conquering new markets, entering the market with a new product, and quickly recovering costs can be put forward as intermediate goals. , income stabilization. Moreover, the achievement of these goals is possible in the short, medium and long term.

The main objectives of the pricing policy are as follows:

1. Further existence of the enterprise. An enterprise may have excess capacity, there are many manufacturers on the market, intense competition is observed, demand and consumer preferences have changed. In such cases, in order to continue production, eliminate stocks, enterprises often reduce prices. In this case, the profit loses its value. As long as the price covers at least the variables and part fixed costs, production can continue. However, the question of the survival of the enterprise can be seen as a short-term goal.

2. Short-term profit maximization. Many businesses want to set a price for their product that would provide maximum profit. In realizing this goal, the emphasis is on short-term profit expectations and does not take into account long-term prospects, as well as the opposing policies of competitors and the regulatory activity of the state. This goal is often used by enterprises in unstable conditions of the transition economy.

3. Short-term turnover maximization. The price that stimulates the maximization of turnover is chosen when the goods are produced corporately and in this case it is difficult to determine the structure and level of production costs. In order to realize the set goal (maximization of turnover), a percentage of commissions from the sales volume is set for intermediaries. Short-term maximization of turnover can also provide maximum profit and market share.

4. Maximize sales. Enterprises that pursue this goal believe that an increase in sales will lead to a decrease in unit costs and, on this basis, to an increase in profits. Such enterprises set prices as low as possible. This approach is referred to as "price-to-market pricing policy".

5. Skim the cream off the market by setting high prices. Such a policy takes place when an enterprise sets the highest possible price for its new products, significantly higher than the production price. This is the so-called "premium pricing". As soon as sales at a given price decrease, it is necessary to reduce the price in order to attract the next layer of customers, thereby achieving the maximum possible turnover in each segment of the target market.

6. Leadership in quality. An enterprise that manages to secure a reputation as a leader in quality sets a high price for its product in order to cover the high costs associated with improving quality and the costs of research and development conducted for these purposes. The listed goals of pricing policy can be implemented at different times, at different prices, there may be a different ratio between them, but all of them together serve a common goal - long-term profit maximization.

Price Policy life cycle goods

The most famous and most criticized concept is the concept of the product life cycle. It proceeds from the fact that each product is on the market for a limited time due to obsolescence and is directly related to pricing, because it allows you to study the behavior of prices at various stages of the product life cycle, and thereby develop a pricing policy for each phase of the cycle. Each product goes through the following stages: development and entry into the market, growth, maturity, fall and disappearance from the market, that is, it lives its own life cycle, which has a different total duration, the duration of individual stages within the cycle, and the features of the development of the cycle itself.

There is rarely a single price set for each stage of a product's life cycle; at each stage, new consumer segments with different price sensitivities appear on the market, which is taken into account in pricing practices.

The stage of product development and entry into the market

The main characteristics of the stage of development and entry into the market: significant research, development and production costs, the absence of actual competitors, the price is an indicator of the quality of the product. Price at this stage, on the one hand, does not play a significant role. However, if for consumers the price is an indicator of a certain quality, and at this stage of the product's existence they cannot yet compare it with alternative products, then their behavior is relatively insensitive to the price of the innovative product. Therefore, manufacturers should provide broad information about the benefits that consumers will receive from the use of a new product. In turn, information about the quality of the product is most often distributed through potential buyers, so the future long-term demand for the product depends on the number of initial buyers. According to experts, demand begins to adapt to a new product if the first 2-5% of consumers have adapted to it. On the other hand, the price at this stage should primarily compensate for the initial costs of research and development of new production. Therefore, it is usually high.

Growth stage During the growth stage, the product encounters its competitors for the first time, thereby creating for the consumer great opportunity choice. At the same time, consumer awareness increases, which increases its sensitivity to the price of the product. The price at this stage is high, but lower than in the previous phase. The price must exactly match the quality of customer value that the buyer expects. Entering the mass market depends on the state of the industry, internal capabilities, external environment, goals and directions for the future development of the company. In any case, two market elements will always limit the manufacturer's options: competitors and consumers. At the "growth" stage, the following pricing goals can be achieved: - "cream skimming", or rewards, when the price is set above the price of competitors, emphasizing the exceptional quality of the product; - setting the price of "parity". This is a situation where there is an overt or covert collusion with competitors or when there is a focus on the leader in setting prices. In this case, the focus is on the most typical mass buyer, that is, the company works with the entire market.

Stage of "maturity" of the product A feature of the stage of "maturity" is the appearance on the market of the most price-sensitive group of consumers.

In general, the market situation is as follows:

1) the market is saturated with the product;

2) competition is weakening due to the elimination of firms that could not withstand it (primarily with high production costs);

3) some firms move on to create a new product. The price level at the stage of maturity is low.

At this stage, market share is important for the firm, since its decline, even at low costs and the inability to increase the price, leads to an inability to recoup the costs. Often, as a separate stage of the life cycle, the stage of “saturation” is singled out. but it can also be seen as the final phase of maturity. During this period, the market is saturated, demand requires new products. So that competitors do not seize the initiative, it is necessary to create new products. At this stage, the market is expanding, firstly, at the expense of previously uncovered potential consumers; secondly, due to the geographical expansion of the market. It is at this stage that a certain general “market” price appears, to which manufacturers gravitate to a greater or lesser extent, firms have lower costs for promoting goods through existing ties. There is good competition among consumers.

Fall stage At this stage, the product zapakchivaet its existence under conditions of underutilization of production capacity. The price is either lower than before, or increases if a lagging buyer joins in. The impact of this situation on prices depends on the ability of the industry or individual firm to get rid of excess capacity for the production of this product and switch to new product. Earnings and prices can fall sharply, but they can also stabilize at a low level.

In any case, production will be inefficient for any firm. The following must also be taken into account:

1. If most of the costs are variable costs, or funds can be reallocated to more profitable industries (for example, by reducing the number of employees), prices should decrease slightly, which will give an impetus to reducing production capacity in other firms.

2. If costs are mostly fixed and sunk, average costs dependent on reduced capacity utilization, price competition may increase as firms try to increase capacity utilization and capture more share of a declining market.

3. Basic Pricing Strategies An enterprise's pricing policy is the basis for developing its pricing strategy.

Pricing strategies are part of the overall development strategy of the enterprise. A pricing strategy is a set of rules and practices that it is advisable to follow when setting market prices for specific types of products manufactured by an enterprise.

The main types of pricing strategies are;

1. High price strategy

The purpose of this strategy is to obtain super profits by "skimming the cream" from those buyers for whom the new product is of great value, and they are willing to pay more than the normal market price for the purchased product. The high price strategy is used when the company is convinced that there is a circle of buyers who will show demand for an expensive product. This applies: - firstly, to new, patent-protected and unparalleled products that appear on the market for the first time, i.e., to products that are at the initial stage of the “life cycle”; - secondly, to goods targeted at wealthy buyers who are interested in the quality, uniqueness of the goods, i.e., to such a market segment where demand does not depend on price dynamics: - thirdly, to new goods for which the company there is no prospect of long-term mass sales, including due to the lack of necessary capacities. Pricing policy during the period of application of high prices - profit maximization as long as the market for new products has not become an object of competition. The high price strategy is also used by the company to test its product, its price, gradually approaching an acceptable price level.

2. Average price strategy (neutral pricing) Applicable to all phases of the life cycle, except for the decline and is most typical of most enterprises considering profit as a long-term policy. Many enterprises consider this strategy to be the most fair, because it eliminates “price wars”, does not lead to the emergence of new competitors, does not allow firms to profit at the expense of buyers, and makes it possible to receive a fair return on invested capital. Foreign large and super-large corporations, in most cases, are satisfied with a profit of 8-10% of the share capital.

3. Low price strategy (price breakout strategy) The strategy can be applied at any phase of the life cycle. It is especially effective at high price elasticity of demand.

Applies in the following cases:

a) for the purpose of penetrating the market, increasing the market share of their product (crowding out policy, non-admission policy);

b) for the purpose of additional loading of production capacities;

c) to avoid bankruptcy. The strategy of low prices is aimed at obtaining long-term, not quick profits.

4. Target price strategy With this strategy, no matter how prices and sales volumes change, the mass of profit should be constant, that is, profit is the target value. Mainly used by large corporations.

5. Preferential price strategy Its goal is to increase sales. It is used at the end of the product life cycle and manifests itself in the application of various discounts.

6. The strategy of "tied" pricing When using this strategy, when setting prices, they are guided by the so-called consumption price, which is equal to the sum of the price of the product and the costs of its operation.

7. Strategy of "following the leader" The essence of this strategy does not imply the establishment of a chain for new products in strict accordance with the price level of the leading company in the market. It is only a question of taking into account the price policy of the leader in the industry or market. The price of a new product may deviate from the price of the leading company, but within specified limits, which are determined by quality and technical superiority.

The following strategies are less commonly used:

a) fixed prices. The enterprise seeks to establish and maintain unchanged prices over a long period, and since production costs increase or may increase, instead of revising prices, enterprises reduce the size of the package and change the composition of the goods. For example, you can reduce the weight of a loaf of bread costing 10 rubles, while leaving the price unchanged. The consumer prefers such changes to higher prices;

b) unrounded prices, or psychological prices. These are, as a rule, reduced prices against some round sum. For example, not 10 thousand rubles, but 9995; 9998. Consumers get the impression that the company carefully analyzes its prices, sets them at the minimum level. They like getting change;

c) price lines. This strategy reflects a range of prices, where each price represents a certain level of quality for the product of the same name. In this case, two decisions are made: a range of offer prices is determined - upper and lower limits - and specific prices are set within this range. The range can be defined as low, medium and high.

Even less common are pricing strategies such as:

Sales promotion;

Differentiated prices;

Restrictive (discriminatory) prices;

Falling leader;

Bulk purchase prices;

Unstable, changing prices.

Pricing in an enterprise is a complex process consisting of several interrelated stages: the collection and systematic analysis of market information.

Substantiation of the main goals of the enterprise's pricing policy for a certain period of time, the choice of pricing methods, the establishment of a specific price level and the formation of a system of discounts and price surcharges, the adjustment of the enterprise's pricing behavior depending on the prevailing market conditions.

Pricing policy is a mechanism or model for making decisions about the behavior of an enterprise in the main types of markets in order to achieve the goals of economic activity.

Tasks and mechanism for developing pricing policy.

The enterprise independently determines the scheme for developing a pricing policy based on the goals and objectives of the development of the company, organizational structure and management methods, established traditions in the enterprise, the level of production costs and other internal factors, as well as the state and development of the business environment, i.e. external factors.

When developing a pricing policy, the following questions are usually addressed:

in what cases it is necessary to use the pricing policy in the development;

when it is necessary to respond with the help of price to the market policy of competitors;

what pricing policy measures should accompany the introduction of a new product to the market;

for which goods from the assortment sold it is necessary to change prices;

in which markets it is necessary to pursue an active pricing policy, change the pricing strategy;

how to distribute certain price changes over time;

what price measures can be used to increase sales efficiency;

how to take into account the existing internal and external restrictions in the pricing policy entrepreneurial activity and a number of others.

Setting goals for pricing policy.

On the initial stage Developing a pricing policy, an enterprise needs to decide what kind of economic goals it seeks to achieve through the release of a particular product. Usually, there are three main goals of pricing policy: ensuring sales (survival), profit maximization, market retention.

Ensuring sales (survival) is the main goal of enterprises operating in conditions of fierce competition, when there are many manufacturers of a similar product on the market. The choice of this goal is possible in cases where consumer demand is price elastic, and also in cases where the enterprise sets the goal of achieving maximum growth in sales and increasing total profit by some reduction in income from each unit of goods. The enterprise may proceed from the assumption that an increase in sales volume will reduce the relative costs of production and marketing, which makes it possible to increase sales of products. To this end, the company lowers prices - uses the so-called penetration prices - specially lowered prices that help expand sales and capture a large market share.

Setting a profit maximization goal means that the company seeks to maximize current profit. It estimates demand and costs for different levels prices and selects the price that will provide the maximum cost recovery.

The goal pursuing the retention of the market involves the preservation of the existing position of the enterprise in the market or favorable conditions for their activities, which requires the adoption of various measures to prevent a decline in sales and aggravation of competition.

The above objectives of pricing policy are usually long-term, calculated over a relatively long period of time. In addition to long-term, the company can set short-term goals of pricing policy. They usually include the following:

stabilization of the market situation;

reducing the impact of price changes on demand;

maintaining the existing leadership in prices;

limiting potential competition;

improving the image of the enterprise or product;

sales promotion for those goods that occupy a weak position in the market, etc.

Patterns of demand. The study of the patterns of formation of demand for a manufactured product is milestone in the development of the pricing policy of the enterprise. Demand patterns are analyzed using supply and demand curves, as well as price elasticity coefficients.

The less elastic demand is, the higher the price the seller can charge. And vice versa, the more elastic demand reacts, the more reason to use the policy of reducing prices for manufactured products, as this leads to an increase in sales volumes, and consequently, the income of the enterprise.

Prices calculated taking into account the price elasticity of demand can be considered as the upper limit of the price.

To assess the sensitivity of consumers to prices, other methods are also used to determine the psychological, aesthetic and other preferences of buyers that influence the formation of demand for a particular product.

Cost estimate. To implement a well-thought-out pricing policy, it is necessary to analyze the level and structure of costs, evaluate the average costs per unit of production, compare them with the planned production volume and existing market prices. If there are several competing enterprises in the market, then it is necessary to compare the costs of the enterprise with the costs of the main competitors. The cost of production forms the lower limit of the price. They determine the ability of the enterprise in the field of price changes in the competition. The price cannot fall below a certain limit, which reflects the production costs and the level of profit acceptable to the enterprise, otherwise the production is economically unprofitable.

Analysis of prices and products of competitors. The difference between the upper limit of price, determined by effective demand, and the lower limit, formed by costs, is sometimes called the price-setting entrepreneur's playing field. It is in this interval that a specific price is usually set for a particular product produced by an enterprise.

The level of the price to be set should be comparable with the prices and quality of similar or similar goods.

Studying the products of competitors, their price catalogs, interviewing buyers, the company must objectively assess its position in the market and, on this basis, adjust product prices. Prices may be higher than those of competitors, if the manufactured product surpasses them in terms of quality characteristics, and vice versa, if the consumer properties of the product are inferior to the corresponding characteristics of competitors' products, then prices should be lower. If the product offered by the enterprise is similar to the products of its main competitors, then its price will be close to the prices of competitors' products.

Enterprise pricing strategy.

The company develops a pricing strategy based on the characteristics of the product, the possibility of changing prices and production conditions (costs), the situation on the market, the balance of supply and demand.

An enterprise can choose a passive pricing strategy, following the "leader in prices" or the bulk of the producers on the market, or try to implement an active pricing strategy that takes into account, first of all, its own interests. The choice of pricing strategy, in addition, largely depends on whether the company offers a new, modified or traditional product on the market.

When releasing a new product, the company usually chooses one of the following pricing strategies.

Cream skimming strategy. Its essence lies in the fact that from the very beginning of the appearance of a new product on the market, the highest possible price is set for it, based on the consumer who is ready to buy the product at that price. Price cuts take place after the first wave of demand subsides. This allows you to expand the sale area - to attract new customers.

This pricing strategy has a number of advantages:

a high price makes it easy to correct a price error, as buyers are more sympathetic to lowering the price than to raising it;

a high price provides a sufficiently large profit margin at relatively high costs in the first period of product release;

the increased price makes it possible to restrain consumer demand, which makes some sense, since at a lower price the company would not be able to fully satisfy the needs of the market due to its limited production capabilities;

a high initial price helps to create an image of a quality product among buyers, which can facilitate its sale in the future with a price reduction;

a higher price increases demand for a prestige product.

The main disadvantage of this pricing strategy is that the high price attracts competitors - potential manufacturers of similar products. The cream skimming strategy is most effective when there is some restriction of competition. A condition for success is also the existence of sufficient demand.

Market penetration (introduction) strategy. To attract the maximum number of buyers, the company sets a significantly lower price than the market prices for similar products of competitors. This gives him the opportunity to attract the maximum number of buyers and contributes to the conquest of the market. However, such a strategy is used only when large volumes of production allow the total mass of profit to compensate for its losses on a separate product. The implementation of such a strategy requires large material costs, which small and medium-sized firms cannot afford, since they do not have the ability to quickly expand production. The strategy works when demand is elastic, and also if the growth in production volumes reduces costs.

The psychological price strategy is based on setting a price that takes into account the psychology of buyers, especially their price perception. Usually the price is determined at a rate just below the round sum, while the buyer gets the impression of a very accurate determination of the cost of production and the impossibility of cheating, lowering the price, concessing the buyer and winning for him. It also takes into account the psychological moment that buyers like to receive change. In fact, the seller wins by increasing the number of products sold and, accordingly, the amount of profit received.

The strategy of following the leader in an industry or market assumes that the price of a product is set based on the price offered by the main competitor, usually the leading firm in the industry, the enterprise that dominates the market.

The neutral pricing strategy proceeds from the fact that the pricing of new products is carried out on the basis of taking into account the actual costs of its production, including the average rate of return in the market or industry.

The prestige pricing strategy is based on setting high prices for products that are very High Quality with unique properties.

The choice of one of the listed strategies is carried out by the management of the enterprise, depending on the target number of factors:

the speed of introducing a new product to the market;

market share controlled by the firm;

the nature of the goods being sold (degree of novelty, interchangeability with other goods, etc.);

payback period of capital investments;

specific market conditions (degree of monopolization, price elasticity of demand, range of consumers);

position of the company in the relevant industry (financial position, relations with other manufacturers, etc.).

Pricing strategies for goods that have been on the market for a relatively long time may also be guided by different kinds prices.

The sliding price strategy assumes that the price is set almost in direct proportion to the supply and demand ratio and gradually decreases as the market is saturated (especially the wholesale price, and the retail price can be relatively stable). This approach to setting prices is most often used for products of mass demand. In this case, prices and volumes of output of goods closely interact: the larger the volume of production, the more opportunities the enterprise (firm) has to reduce production costs and, ultimately, prices. A given pricing strategy needs to:

prevent a competitor from entering the market;

constantly take care of improving the quality of products;

reduce production costs.

The long-term price is set for consumer goods. It acts, as a rule, for a long time and is slightly subject to changes.

The prices of the consumer segment of the market are set for the same types of goods and services that are sold by different social groups people with different levels of income. Such prices can, for example, be set for various modifications of cars, air tickets, etc. It is important at the same time to ensure the correct ratio of prices for various products and services, which is a certain difficulty.

A flexible price strategy is based on prices that respond quickly to changes in the balance of supply and demand in the market. In particular, if there are strong fluctuations in supply and demand in relatively short time, then the use of this type of price is justified, for example, when selling certain food products (fresh fish, flowers, etc.). The use of such a price is effective with a small number of levels of the management hierarchy in the enterprise, when the rights to make decisions on prices are delegated to the lowest level of management.

The preferential price strategy provides for a certain reduction in the price of goods by an enterprise that occupies a dominant position (market share of 70-80%) and can provide a significant reduction in production costs by increasing production volumes and saving on the costs of selling goods. The main task of the enterprise is to prevent new competitors from entering the market, to make them pay too high a price for the right to enter the market, which not every competitor can afford.

The strategy of setting prices for products discontinued from production does not involve selling at reduced prices, but targeting a strictly defined circle of consumers who need these particular products. In this case, the prices are higher than for ordinary goods. For example, in the production of spare parts for cars and trucks of a wide variety of makes and models (including discontinued).

There are certain features of setting prices that serve foreign trade turnover. Foreign trade prices are determined, as a rule, on the basis of the prices of the main world commodity markets. For exported goods within the country, special prices are set for export delivery. For example, for mechanical engineering products supplied for export, premiums were applied to wholesale prices for export and tropical execution until recently. For some types of scarce products, when delivered for export, prices are added customs duty. For imported consumer goods in many cases, free retail prices are set based on the balance of supply and demand.

Choice of pricing method.

Having an idea of the patterns of formation of demand for goods, the general situation in the industry, prices and costs of competitors, having determined its own pricing strategy, the enterprise can proceed to the choice of a specific pricing method for the manufactured goods.

Obviously, a correctly set price should fully compensate for all the costs of production, distribution and marketing of goods, and also ensure a certain rate of profit. Three pricing methods are possible: setting a minimum price level determined by costs; establishing a maximum price level formed by demand, and, finally, establishing an optimal price level. Consider the most commonly used pricing methods: "average cost plus profit"; ensuring break-even and target profit; setting a price based on the perceived value of the product; setting prices at the level of current prices; method of "sealed envelope"; price setting based on closed auctions. Each of these methods has its own characteristics, advantages and limitations that must be kept in mind when developing a price.

The simplest is the “average cost plus profit” method, which consists in charging a markup on the cost of goods. The markup value can be standard for each type of product or differentiated depending on the type of product, unit cost, sales volumes, etc.

The manufacturing enterprise itself must decide which formula it will use. The disadvantage of the method is that the use of a standard margin does not allow, in each specific case, to take into account the characteristics of consumer demand and competition, and, consequently, to determine the optimal price.

Yet the markup methodology remains popular for a number of reasons. First, sellers are more aware of costs than they are of demand. By tying price to cost, the seller simplifies the pricing problem for himself. He does not have to frequently adjust prices depending on fluctuations in demand. Secondly, it is recognized that this is the most fair method in relation to both buyers and sellers. Thirdly, the method reduces price competition because all firms in the industry calculate the price according to the same “average cost plus profit” principle, so their prices are very close to each other.

Another cost-based pricing method is aimed at achieving a target profit (break-even method). This method makes it possible to compare profits at different prices, and allows a firm that has already determined its own rate of return to sell its product at the price that, under a given program of output, would achieve the maximum extent of this task.

In this case, the price is immediately set by the firm based on the desired profit. However, in order to recover production costs, it is necessary to sell a certain volume of products at a given price or at a higher price, but not a smaller amount. This is where the price elasticity of demand is of particular importance.

This pricing method requires the firm to consider different price options, their impact on the sales volume needed to break even and achieve a target profit, and analyze the likelihood of achieving all this at each possible price of the product.

Pricing based on the "perceived value" of a product is one of the most ingenious methods of pricing, with an increasing number of firms starting to base their pricing on the perceived value of their products. In this method, cost benchmarks fade into the background, giving way to the perception of buyers of the product. To form in the minds of consumers ideas about the value of goods, sellers use non-price methods of influence; provide after-sales service, special guarantees to customers, the right to use trademark in case of resale, etc. The price in this case reinforces the perceived value of the product.

Setting prices at the level of current prices. By setting a price based on the level of current prices, the firm is mainly based on the prices of competitors and pays less attention to indicators of its own costs or demand. It may charge a price above or below the price of its main competitors. This method is used as a price policy tool primarily in those markets where homogeneous goods are sold. A firm that sells similar products in a highly competitive market has very limited ability to influence prices. Under these conditions, in the market for homogeneous goods, such as food products, raw materials, the firm does not even have to make decisions on prices, its main task is to control its own production costs.

However, firms operating in oligopolistic market, try to sell their products at a single price, as each of them is well aware of the prices of their competitors. Smaller firms follow the leader, changing prices when the market leader changes them, and not depending on fluctuations in the demand for their goods or their own costs.

The pricing method based on the level of current prices is quite popular. In cases where the elasticity of demand is difficult to measure, it seems to firms that the level of current prices represents the collective wisdom of the industry, the guarantee of a fair rate of return. And besides, they feel that sticking to the level of current prices means maintaining a normal balance within the industry.

Sealed envelope pricing is used, in particular, when several firms compete with each other for a machinery contract. This happens most often when firms participate in tenders announced by the government. The tender is the price offered by the company, the determination of which proceeds primarily from the prices that competitors can charge, and not from the level of their own costs or the magnitude of demand for the product. The goal is to get a contract, and so the firm tries to set its price at a level below that offered by competitors. In those cases where the firm is deprived of the ability to anticipate the actions of competitors in prices, it proceeds from information about their production costs. However, as a result of the information received about the possible actions of competitors, the company sometimes offers a price below the cost of its products in order to ensure full production load.

Closed bidding pricing is used when firms compete for contracts during bidding. At its core, this pricing method is almost no different from the method discussed above. However, the price set on the basis of closed auctions cannot be lower than the cost price. The goal pursued here is to win the auction. The higher the price, the lower the probability of receiving an order.

Having chosen the most suitable option from the methods listed above, the firm can proceed to the calculation of the final price. At the same time, it is necessary to take into account the psychological perception of the price of the company's goods by the buyer. Practice shows that for many consumers the only information about the quality of a product lies in the price, and in fact the price acts as an indicator of quality. There are many cases when, with an increase in prices, the volume of sales increases, and, consequently, production.

Price modifications.

The enterprise usually develops not a single price, but a system of price modifications depending on various market conditions. This price system takes into account the peculiarities of the qualitative characteristics of the product, product modifications and assortment differences, as well as external implementation factors, such as geographical differences in costs and demand, demand intensity in certain market segments, seasonality, etc. Various types of price modification are used: a system of discounts and allowances, price discrimination, stepwise price reductions for the proposed range of products, etc.

Price modification through a discount system is used to incentivize buyer action, such as purchasing, larger lots, contracting during sales downturns, etc. In this case, different discount systems are used: cash discount, wholesale, functional, seasonal, etc.

Cash discounts are discounts or reductions in the price of goods that encourage payment for goods in cash, in the form of an advance or prepayment, and also before the deadline.

Functional or trade discounts are given to those firms or agents that are part of the sales network manufacturing enterprises, provide storage, accounting of commodity flows and sales of products. Usually, equal discounts are used for all agents and firms with which the company cooperates on an ongoing basis.

Seasonal discounts are used to stimulate sales during the off-season, i.e. when the demand for the product falls. In order to maintain production at a stable level, the manufacturer may provide post-season or pre-season discounts.

Modification of prices for sales promotion depends on the goals of the company, the characteristics of the product and other factors. For example, special prices may be set during certain events, such as seasonal sales, where prices are reduced for all seasonal consumption goods, exhibitions or presentations, when prices may be higher than usual, etc. To stimulate sales, premiums or compensations to the consumer who bought the product in retail trade and sent the appropriate coupon to the manufacturing enterprise can be used; special interest rates when selling goods on credit; warranty conditions and agreements on maintenance etc.

Geographic price modification is associated with the transportation of products, regional peculiarities supply and demand, the level of income of the population and other factors. Accordingly, uniform or zonal prices may apply; taking into account the costs of delivery and cargo insurance based on practice foreign economic activity the FOB price is used, or the system of franking (ex-stock of the supplier, ex-car, ex-border, etc.).

It is customary to talk about price discrimination when a company offers the same products or services at two or more different prices. Price discrimination manifests itself in various forms depending on the consumer segment, product forms and applications, company image, time of sale, etc.

A stepwise reduction in prices for the proposed range of goods is used when the company produces not individual products, but entire series or lines. The company determines which price steps to enter for each individual product modification. At the same time, in addition to the difference in costs, it is necessary to take into account the prices of competitors' products, as well as the purchasing power and price elasticity of demand.

Modification of prices is possible only within the upper and lower limits of the set price.

The pricing policy of enterprises (firms) with various forms of ownership should be based on the state pricing policy and the characteristics of a market economy.

The pricing policy of an enterprise is determined primarily by its own potential, technical base, the availability of sufficient capital, qualified personnel, modern, advanced organization of production, and not only the state of supply and demand in the market. Even the existing demand must be able to satisfy, and at a certain time, the required volume, a specific place and while ensuring the appropriate quality of goods (services) and acceptable prices (tariffs) for the consumer (buyer).

The basis of such activities in the field of pricing is the determination of the purpose and strategic line of development of the enterprise. In the course of its practical implementation, organizational, technical, economic, informational, marketing, managerial and other actions for the formation and application of prices are primarily consistent with all the changes that the strategic line undergoes in the framework of the life of the enterprise in the market. At the same time, price policy and pricing management play such an important role in the activities of economic entities that they constitute one of the fundamental directions of their strategic development. Price is the most important element of the market research complex, which belongs to the group of controlled factors and is the main indicator that determines income. In this regard, the essential importance of pricing for any enterprise (firm) is indisputable. Modern pricing policy is very diverse. Therefore, the study of the technology for calculating optimal, scientifically based prices is very important.

AT modern conditions market relations There are two approaches to the process of market pricing: the establishment of individual and uniform prices. The individual price is determined on a contractual basis as a result of negotiations between the seller and the buyer. In conditions where a standardized product of mass or series production a wide range of consumers, it is preferable to use uniform prices. In this case, the buyer knows the price of the product, can compare it with the price of similar or interchangeable products, and make a purchase decision relatively easily.

Despite the fact that other non-price factors of competition are currently being widely developed, price still remains an essential element of competition policy that has a great impact on the functioning of the enterprise, its sustainability and development prospects. However, the pricing policy of many enterprises turns out to be insufficiently developed, which does not exclude making wrong decisions, since pricing is too cost-oriented, prices do not take into account the dynamics of market conditions and are not considered together with other elements of the marketing system, pricing strategies are rarely linked to the overall development strategy of the marketing system itself. enterprises, prices are not sufficiently structured by individual product options and market segments, there is no information on the pricing policy of the main competitors.

The pricing policy of many enterprises (firms) is to cover costs and get a certain profit. Individual enterprises trying to sell the product as expensive as possible. This practice indicates the lack of necessary experience and knowledge in the field of pricing. Therefore, it is important for an enterprise (firm) to study various pricing options, evaluate their features, conditions, areas, advantages and disadvantages of using them.

The main objectives of the pricing policy of any enterprise (firm) are the following.

1. Ensuring the continued existence of the company. In the presence of excess capacity, intense competition in the market, changes in demand and consumer preferences, enterprises often reduce prices in order to continue production, eliminate stocks. In this case, the profit loses its value. As long as the price covers at least the variable and part of the fixed costs, production can continue. However, the question of the survival of the enterprise can be seen as a short-term goal.
2. Short-term achievement of profit maximization. Many businesses want to set a price for their product that would provide maximum profit. To achieve this goal, it is necessary to determine the preliminary demand and costs for each price option. Then, on the basis of alternative selection, the price that will bring the maximum profit in the short term is selected. This assumes that demand and production costs are known in advance, although in reality it is very difficult to determine them. In realizing this goal, the emphasis is on short-term profit expectations and does not take into account long-term prospects, as well as the opposing policies of competitors and the regulatory activity of the state. This goal is typical for enterprises in the conditions of an unstable transitional economy, which is typical for modern Russia.
3. Short-term achievement of turnover maximization. The price that stimulates the maximization of turnover is chosen when the goods are produced corporately and it is difficult to determine the structure and level of production costs. Therefore, it is considered sufficient to know only the demand. To achieve this goal, for intermediaries set a percentage of commission on sales. Maximizing turnover in the short term can also maximize profits and market share in the long term.
4. Ensuring the maximum increase in sales. Firms pursuing this goal believe that an increase in sales will lead to a decrease in the cost of producing a unit of output and, on this basis, to an increase in profits. Given the reaction of the market to the price level, such firms set them as low as possible. This approach is called the pricing policy of the attack on the market. If an enterprise reduces the prices of its products to the minimum acceptable level, increases its share in the market, seeking to reduce the cost of producing a unit of goods as output increases, then on this basis it will be able to continue to reduce prices. However, such a policy can give a positive result only if there are a number of conditions: a) if the market's sensitivity to prices is very high (lower prices - increased demand); b) if it is possible to reduce production and sales costs as a result of an increase in output volumes; c) if other market participants also do not start to reduce prices or fail to withstand competition.
5. "Skim cream" from the market. It comes at the cost of high prices. This occurs when a firm sets the highest possible prices for its new products, which are significantly higher than the production prices. This pricing is called "premium". Separate market segments from the appearance of new products, even at a high price, receive cost savings, better satisfy their needs. As soon as sales at a given price are reduced, the firm lowers the price to attract the next group of customers, thereby reaching in each segment target market maximum possible turnover.
6. Achieving leadership in quality. A firm that manages to establish itself as a leader in quality sets a high price for its product in order to cover the high costs associated with improving quality and the costs of research and development carried out for this.

The listed objectives of the pricing policy can be implemented at different times, at different prices, between them there may be different ratio, but together they all serve to achieve a common goal - long-term profit maximization.

The pricing mechanism involves choosing from the entire set of strategies and pricing methods the most optimal option in setting the price of goods (services), which makes it possible to achieve an economically feasible combination of the multidirectional interests of the producer (seller) and the consumer (buyer) in the price, since the seller is interested in reimbursing the costs incurred production and profit maximization, and the buyer, on the contrary, in reducing the price and, accordingly, in minimizing the seller's profit.

Pricing is the process of setting a price. With a given volume of output, there are objectively two prices for the enterprise's products. The first, called the bid price, is maximum price, which buyers would agree to pay for the volume of products that the manufacturer offers them. The second, called the offer price, is the minimum price for which a manufacturer would agree to sell its product. These two prices may not match. If the demand price is higher than the offer price, then the company can manipulate prices in the formed price corridor to achieve its strategic goals in this period. The equality of the demand price and the offer price actually means that there is only one price option that is breakeven for the seller and acceptable for the buyer. And finally, if the supply price exceeds the demand price, the manufacturer will be forced to sell the volume of output he has at the demand price, incur losses, and then either try to minimize the cost or change the volume of production. And not necessarily he will choose the option of reducing production. It may turn out to be beneficial to increase it, but on one condition - if with an increase in production volumes, the unit cost of production will fall. In practice, it is difficult to calculate the offer price and the ask price at any given time. Therefore, when forming their pricing policy, the company's managers are largely forced to act "by touch", i.e. by trial and error. But this does not mean that they are free to choose a pricing strategy, because "retaliation" for any wrong pricing decision comes inevitably.

The definition of a firm's pricing strategy must be preceded by two preliminary steps. At the first stage, the analysis of the results of market research is carried out to determine its structure and the elasticity of the demand curve for products manufactured by the enterprise. The relationship between the magnitude of demand for this species product and its price reflects the demand curve, which, in accordance with the law of demand, has a negative slope. The coefficient of elasticity, which is the most important characteristic of any part of this curve, shows by how many percent the demand for goods will change. this product when the price changes by 1%. When businesses raise or lower the price of their product, economists say that the producer is "moving" up or down the demand curve. The slope of the demand curve, or its elasticity, determines the amount of price reduction required to increase demand by 1%. If the curve is steep, then a significant price reduction is required to reach the point where demand is 1% higher. Conversely, if the demand curve is flat, you can limit yourself to only a small price decrease. Price change is the simplest mechanism for taking into account changes in demand, costs and the position of competitors. However, of all the variables that determine the magnitude of demand for a product, price changes are the easiest for competitors to duplicate. If they choose a copy strategy, this will reduce the effectiveness of the pricing policy to almost zero and may lead to a "price war".

At the second stage of the pricing policy, the strategy of the enterprise's behavior in the market is clearly defined (ensuring survival, maximizing current profits, gaining leadership in terms of sales volume or product quality, etc.). Pricing policy serves as a tool for implementing this strategy. Only after determining the configuration of the demand curve and the strategy of behavior in the market, the company can begin to choose one or another option for pricing policy. There are several basic pricing methods.

The first of them (the simplest) is to charge a certain margin on the cost of goods. For example, the production and sale of a certain product may cost the company 200 rubles, and she wants to make a profit based on the rate of 10%. In this case, the selling price of the goods will be 220 rubles. This method of pricing is used by almost all enterprises in a scarce economy, when demand obviously exceeds supply. But even in a developed monetary circulation Many enterprises determine the price according to the "cost plus profit" formula. These primarily include monopoly enterprises, which may not worry about fluctuations in demand for their services. Oddly enough, some non-monopolists in the service sector also adhere to similar pricing principles, for example, enterprises retail. Moreover, the amount of margins of stores can vary widely depending on both their location and the type of product.

The cost-plus-profit pricing methodology remains quite popular for three reasons:

1) Sellers know more about costs than about demand. By justifying the price with costs, the seller simplifies the pricing problem for himself, since he does not have to adjust prices too often depending on demand;
2) price competition is reduced to a minimum. If all firms in an industry use this pricing method, their prices are likely to be similar;
3) the seller believes that he sets a "fair" price for both himself and the buyer.

The second method of pricing, also based on costs, is the calculation of prices that provides a certain amount of gross profit. This method is more complex but more flexible. It involves comparing different options for combinations of prices and sales volumes and choosing one that will allow you to overcome the breakeven level and get the planned profit. This method is usually used big companies with large specialized departments responsible for price marketing.

The third pricing method is to set a price close to the bid price. Marketers identify the "price ceiling" of a given product, i.e. the maximum amount consumers are willing to pay. Further, they try to maximize profits by controlling the cost price without exceeding this "ceiling". The transition of most firms from a cost-based pricing strategy to a demand-based pricing strategy is an important indicator of market competitiveness and high elasticity of demand.

The fourth method of pricing is also known - following competitors, focusing on the current price level. In markets with an oligopolistic structure (for example, steel or oil markets), the spread in prices of products offered is usually minimal. This is due to the widespread policy of copying competitors' price fluctuations. Smaller firms follow the leader, changing prices when the leader changes them, not depending on fluctuations in demand for goods or changes in their cost. Some firms may calculate their price by providing a constant discount or markup on the leader's price, depending on their product features, location, and so on. This is often done, for example, by small independent retailers of gasoline who sell it at retail for a price slightly higher than the price of the local gasoline market leader.

Changes in pricing methods should not be made too often, as this may affect all performance indicators of the enterprise and destabilize its position in the market. Using certain pricing methods, the company sets the base price of its products. However, in order to take into account short-term changes in costs, demand structure, competitive conditions and other factors, the enterprise must develop a policy of "tuning" the base price, ways to establish its final value. Businesses can apply a standard or variable pricing policy. When they strive to keep the price constant for a long time, then instead of changing it (with an increase or decrease in costs), they can reduce or increase the amount of goods supplied in one package, or expand or reduce standard set services.

Businesses can also opt for a flat or flexible pricing policy. Under a uniform price system, a firm sets the same price for all consumers who would like to purchase a product on similar terms. The price may vary strictly in proportion to the quantity of products purchased, but not depending on who and how much is purchased. A flexible pricing policy is an adjustment to the base price by offering discounts or mark-ups. The buyer bargains with the seller, as a result of this bargaining, the final selling price is set. Previously, the trade was the only way setting the final price. At present, in many countries, the policy of flexible pricing is significantly limited. Thus, the Civil Code of the Russian Federation expressly prohibits the selection of buyers.

The final price of the products also depends on whether the seller rounds prices. In some countries, retailers believe that the price of a product must necessarily be unrounded, for example, not $ 5, but $ 4.99. This policy is explained by the following considerations. Buyers like to get change. Since cashiers are required to give change, management ensures that transactions are properly recorded and money is placed in the cash registers. Consumers get the impression that the firm carefully analyzes its prices and sets them at the lowest possible level. In addition, consumers may have the impression that this is a price reduction.

Thus, pricing is a complex process, during which not only objective factors (costs, demand and competition), but also many subjective manifestations must be taken into account. It consists of the processes of pricing of individual goods and the price system as a whole, in a free market the process of pricing occurs spontaneously, prices are formed under the influence of supply and demand in a competitive environment, as well as decision-making related to setting the price of a product or service.

Pricing decisions for most products cannot be made by an enterprise without considering all aspects of the marketing structure, related product prices, competitor prices, production and marketing costs of the product, demand, and pricing objectives.

Thus, in market conditions, the pricing policy of an enterprise (firm) consists of many factors related to the choice of specific pricing targets, approaches and methods for determining the prices of new and already manufactured products, services provided in order to increase sales volumes, turnover, increase production levels, maximize profits and strengthening the market position of the enterprise (firm).

5. PRICE POLICY

Price policy- this is the management of the enterprise's activities in establishing, maintaining and changing prices for manufactured products, carried out in line with the concept of marketing and aimed at achieving its goals.

A significant influence on the formation of the pricing policy of the enterprise has a type of market in which it operates. The basis for determining the type of market is the number of firms operating in the market. The analysis parameters are also: the type of product (the degree of its homogeneity and standardization), price control, conditions for entering the industry, the presence of non-price competition, the importance of marketing.

Based on the analysis of these parameters, four main types of market are distinguished: the market of pure competition, the market of monopolistic competition, the oligopolistic market and the market of pure monopoly (Table 26).

The market of pure competition consists of many sellers and buyers of a standardized product. There are no serious legal, organizational, financial or technological restrictions to enter the industry. Since each firm produces a small fraction of the total output, none of them has much effect on the price level. Sellers in such markets do not spend much time developing a marketing strategy, since its role in such a market is minimal.

The number of firms operating in the market of monopolistic competition is large, but there are much fewer participants in the markets of pure competition. As a rule, these are 20-70 enterprises. Entering the industry is fairly easy. Transactions in such a market are made in a wide range of prices. The presence of a price range is explained by the ability of manufacturers to offer buyers different options for goods. Products may differ from each other in quality and appearance. Differences may also lie in the services associated with the goods. Buyers see the difference in the offer and agree to pay for goods in different ways. Price controls are limited because there are enough firms for each to have a small share of the total market. In such a market, the use of marketing activities is of great importance, but they have less influence on each individual firm than in an oligopolistic market.

Table 26

Characteristics of market types

Analysis Options	Market types
Analysis Options	Pure competition	Monopolistic competition	Oligopolistic competition	monopoly
Number of firms		Lots of		Several
Type of product		Standardized	Differentiated	standardized or differentiated	Standardized or differentiated unique
Price control			Within narrow limits		Significant
Entry into the industry		No restrictions	No major barriers	Limited complex barriers	Blocked
Non-price competition
The Importance of Marketing		Minimum		Significant	Minimum

An oligopolistic market consists of a small number of producers (usually 2 to 20) sensitive to each other's marketing strategies. The small number of sellers is explained by the fact that it is difficult for new applicants to enter this market due to the presence of a complex of barriers: the need for large initial capital, ownership of patents, control over raw materials, etc. Goods in such a market can be standardized (steel) or differentiated (cars). The degree of price control exercised in various forms is high.

In a pure monopoly, there is only one seller in the market producing a product that has no close substitutes. It can be a government organization, a private regulated or unregulated monopoly. The state monopoly can pursue the achievement of various goals with the help of price policy. A regulated monopoly is allowed by the state to set prices that ensure a "fair" rate of return. An unregulated monopoly sets its own prices. Entry into a monopoly industry is blocked by various barriers.

Thus, each type of market has its own mechanisms, so the implementation of the same actions in the field of pricing policy in different markets leads to different results and has different meanings.

The method of establishing the initial price for goods consists of six stages.

1. Setting pricing objectives

Pricing objectives stem from the goals and objectives of the overall marketing policy of the enterprise. The main goals are presented in table. 27.

Table 27

Pricing Goals

		Target nature	Price level
	Sales maximization Achieving a certain market share	long term
Current profit	Maximizing current profit Get cash fast	Short	High (or upward trend in prices)
Survival	Ensuring cost recovery Maintaining the status quo	Short
Quality	Providing leadership in terms of quality indicators Maintaining leadership in terms of quality indicators	long term

2. Determining the level of demand

Demand depends on price, and the degree of this dependence is determined by elasticity. Elasticity of demand- a quantitative characteristic of demand, reflecting a change in the magnitude of demand in response to a change in the price of a product or some other parameter. There are two types of elasticity of demand:

direct price elasticity of demand;

income elasticity of demand;

cross price elasticity of demand.

3. Cost estimate

The level of costs for the production and sale of goods allows you to determine the minimum price that the company must charge to cover them.

4. Analysis of prices and products of competitors

A firm's pricing is influenced by the prices of competitors' products. Focusing on a comparative analysis of the quality of competitors' products and their prices, the company is able to determine the average price range for its products.

5. Choosing a Pricing Method

The most common pricing methods are: “cost plus markup”, break-even analysis and target profit, pricing based on the perceived value of the product, pricing based on the level of competition, aggregate and parametric method.

The “cost plus markup” method is the simplest way of pricing, it consists in charging a certain markup on the full cost of goods. The prevalence of this method, in addition to simplicity, is also determined by the fact that manufacturers are more aware of costs, rather than demand. This method is considered fair; if all sellers use it, then prices for similar goods are similar.

At the same time, the “cost plus profit” method also has significant drawbacks: it is not related to current demand and does not take into account the consumer properties of goods. Besides, total costs include fixed costs that are not related to the production of a particular product, the methods of their allocation to products are conditional and can lead to price distortions.

Determining the price based on break-even analysis and ensuring the target profit is based on the appointment of a price level that will provide the company with the desired amount of profit. Determination of the price by this method can be performed by calculation and graphic method.

The obvious advantage of this method is the provision for the company of the planned profit. The disadvantage is that this method does not take into account the price elasticity of demand. Its use can also lead to a distortion of the real picture due to the conditional allocation of fixed costs to individual products.

The perceived value pricing method considers the consumer's perception of the product as the main factor to be considered. To form in the mind of the consumer the desired idea of the value of the product, non-price methods of influence are used.

Competitive pricing (current price method) considers competitors' prices as a starting point for setting prices, with own costs and demand only taken into account as additional factors. This method is especially popular in pure and oligopolistic competition markets. In an oligopolistic market, this method is embodied in the policy of “following the leader”.

The aggregate method is used for goods consisting of individual products or assemblies (parts) and consists in a simple summation of prices for individual elements of the goods.

The parametric method is based on determining the price of a product based on a comparative formalized analysis of the characteristics of the product in relation to similar characteristics of the base product with a known price.

6. Price setting

By using the selected pricing method, the original price of the item is determined.

7. Development of the dynamics of changes in the initial price of goods

The dynamics of changes in the initial price of goods depends on the chosen strategy. When changing the price of new products, two main strategies are used: “skimming” and “strong adoption”.

The cream-skimming strategy consists of initially setting a high price for a novelty based on narrow market segments and then gradually lowering the price to reach the rest of the segments in a stepwise manner. The “strong adoption” strategy is based on using initial low prices to cover the widest market, with the possibility of increasing them later.

When developing price dynamics for existing products, two main types of strategies can be used: the trailing falling price strategy and the preferential price strategy.

The sliding falling price strategy is a logical continuation of the cream skimming strategy and lies in the fact that the price consistently slides along the demand curve, changing depending on the market situation. The preferential price strategy is a continuation of the solid introduction strategy, its essence is to achieve an advantage over competitors in terms of costs (then the price is set below competitors' prices) or quality (then the price is set above competitors' prices so that the product is regarded as high quality).

In addition to making strategic decisions, it is also necessary to develop pricing tactics, that is, to carry out market price adjustments. Tactical decisions include decisions regarding the establishment of:

standard or flexible prices;

uniform or discriminatory prices;

psychologically attractive prices;

price discount systems.

Purpose of activity commercial enterprise- making profit. The company receives income from the sale of goods and services. Sale can be both wholesale and retail. key factor, influencing the success of the implementation, is the cost of the product being sold. Determining the cost depends on the pricing policy of the enterprise.

The concept of the pricing policy of the enterprise

Pricing policy (CP) is a set of principles for establishing a certain cost for goods and services. it marketing tool, which affects the success of sales and positioning of the company. The main objective of the pricing policy is to obtain a stable profit from sales, to ensure competitiveness. There can be many side tasks. They depend on the characteristics of the functioning of the company. When forming the CP, the following points are taken into account:

The impact of cost on the competitiveness of the company.
Organization's chances of winning a price war.
The reasonableness of the chosen pricing policy for new products.
Change in cost based on the life cycle of the product.
Possibility to set different base prices.

To form the value, it is allowed to choose a company similar in characteristics to the enterprise. It is evaluated for the ratio of costs to profits.

The main goals of pricing policy

Consider the main goals of the company's pricing policy:

continuation of the organization. The enterprise carries out its activities under the influence of such threats as excess capacity, high competition, and a sharp change in demand. Some of these risks can be combated by lowering the cost. However, the price reduction must be such that the income received covers the costs. This CPU goal is considered short term.
Short-term profit increase. Sometimes the cost of a product changes to maximize profit. Often such a goal is set within the framework of a transitional economy. This is a short term task. In the long term, such a goal is not used, since a significant increase in cost will not allow you to win in the competition.
Short term increase in sales. In this case, the cost of goods, on the contrary, decreases. Attractive price allows you to increase sales volume. An alternative option is to assign commissions for intermediaries, which also helps to increase sales. This measure will allow you to extract maximum profit, as well as gain market share.
"Cream skimming". This measure is relevant if the company sells new products. In this case, the highest value is assigned. If sales begin to fall, the cost is reduced slightly to ensure turnover.
Long-term profit increase. One of the current strategies is the formation of the image of a company that produces exceptionally high-quality products. If the client is confident in the quality of the product, he will be ready to purchase it at a high cost. This will achieve long-term profit maximization.

To establish an optimal pricing policy, one goal is set. It is selected depending on the characteristics of a particular enterprise, its competitors.

Varieties of pricing policy

In practice, these forms of pricing policy are applied:

High price policy. When a new product appears on the market, the highest price is set. This is relevant only for really new products that are in demand and are protected by a patent. The cost gradually decreases in the event that a decrease in demand is noticed.
Low price policy. Relevant if a company needs to quickly enter the market and win its share. Suitable for stimulating demand. It is used in markets with increased production volume, increased elasticity of demand. The company's costs are covered by the fact that sales of goods at a low cost increase as much as possible.
Differentiated pricing policy. average cost production changes under the influence of allowances, discounts. Each segment of consumers is offered a separate price for the product.
Preferential price policy. The company gets the opportunity to attract new customers through preferential offers. This method is suitable for market expansion.
Flexible pricing policy. The cost is determined depending on the capabilities of consumers. Changes quite often.
Stable price policy. In this case, prices do not change for a long time. Suitable for everyday goods.

Before setting a specific pricing policy, you need to carefully monitor changes in the prices of goods on the market. Before choosing a strategy, it is necessary to take into account internal (company specifics) and external (market features) factors.

IMPORTANT! The selected policy changes from time to time. You cannot choose one strategy and use it for decades. Policy is determined depending on external factors that are constantly changing.

Factors affecting the pricing policy of the enterprise

There is no objectively ideal pricing policy. Its effectiveness is determined depending on a number of factors. Consider the factors affecting the CPU:

The type of market in which the company operates. If this is the market perfect competition, the role of the CPU is minimal, as the company has no power over the price. The role of price policy in a monopoly is also minimal.
elasticity of demand. It can be direct, cross, dependent on income.
The size of the company, the number of divisions in it, the available capital.
If an organization produces consumer products, it has a greater impact on the CPU, in contrast to companies engaged in the production of manufacturing goods.
The freedom to influence the price of small companies is limited.
Distribution channels for goods. The manufacturer of products can sell the goods himself, as well as use intermediaries for this. In the first case, the company's impact on the CPU is higher.
market segment.
Geographic area.
presence of inflation.
The amount of taxes.
The degree of interference in the activities of the company by state bodies.

The effectiveness of the pricing policy depends not only on the efforts of the company, but also on many other enterprises. Not all organizations can influence the cost. The lowest efficiency of the CP is observed in small companies with high taxation, in whose activities state structures interfere.

How to determine the effectiveness of pricing policy?

A company's CPU efficiency is determined in the following ways:

Compliance with the chosen pricing policy of the financial strategy of the organization.
Realization of the set goals. For example, a company wants to maximize sales performance. An appropriate pricing policy is selected. Over time, it is analyzed how much the sales market has increased. If the indicator has reached the set goals, the selected CPU is considered effective.
The success of product sales. The main purpose of using the CPU is to increase product sales. If the products cannot be sold at the established cost, the pricing policy cannot be called effective.
Flexibility of pricing policy.
Influence fixed prices on profitability ratios.
The impact of the CPU on the competitiveness of the organization, strengthening its position in the market.
Ensuring financial stability.
Adequacy of cost to product quality.
Price balance.

When analyzing the effectiveness of the pricing policy, it is necessary to take into account the main indicators of the success of the enterprise: profitability, sales level, competitiveness, increase in income.