Pricing and pricing policy. Pricing and pricing policy of the enterprise

For any organization, the question of prices is a matter of its existence, well-being and a decisive means to achieve its business goals. Regardless of the strength of the organization's position in the market, it cannot set prices without analysis. possible consequences such a decision. Price is the main element of competitive policy and has a huge impact on the market position and income of the organization. Thus, for a successful entrepreneurial activity in conditions market economy The organization needs a well-designed pricing policy. Setting prices for products (goods, works and services) of an organization is largely an art, since a low price can cause buyers to associate with the low quality of the product offered, a high price can exclude the possibility of purchasing this product by many buyers. Under these conditions, it is necessary to correctly form the pricing policy of the organization.

Price policy organizations - this is the activity of its management in establishing, maintaining and changing prices for manufactured products (goods, works and services), carried out as part of the overall strategy of the organization.

The sequence of developing the pricing policy of the organization:

• 1. Determination of the main goals of pricing.
• 2. Analysis of pricing factors - demand, supply, competitor prices, etc.
• 3. Choice of pricing method.
• 4. Formation of the price level and the system of discounts and price surcharges.
• 5. Adjustment of the pricing policy of the organization, depending on the prevailing market conditions.

There are the following the main objectives of the pricing policy organizations that are shown in Figure 12.1.

Rice. 12.1.

The organization independently determines the mechanism for developing a pricing policy based on the goals and objectives of its development, organizational structure, management methods, level of production and other factors of the internal environment, as well as factors external environment organizations - type of market, distribution channels, government policy, etc.

Mechanism for the development and implementation of pricing policy:

• 1- th stage. Determination of pricing objectives based on an analysis of the state of affairs of the organization in the commodity market and the overall strategy of the organization.
• 2- th stage. Determining the demand for the products offered by the organization (goods, works and services), which will determine the maximum possible prices.
• 3- th stage. Evaluation of production costs, their changes from the volume of production, which will determine the lowest possible prices.
• 4- th stage. Analysis of competitors' prices for similar products (goods, works and services).
• 5- th stage. The choice of the pricing method, on the basis of which the initial - possible (pre-market) price will be set. When the product enters the market, they will adjust and set the final (market) price for this product in accordance with the chosen pricing strategy.

Pricing strategy- this is a reasonable choice from several price options based on the factors and methods that it is advisable to follow when setting market prices for specific types of products (goods, works and services), aimed at achieving the maximum profit of the organization.

The pricing strategy is developed based on the characteristics of the products offered (goods, works and services), the possibility of changing prices and production conditions, as well as the market situation and the balance of supply and demand.

Factors that determine the choice of pricing strategy:

• - the speed of introducing a new product to the market;
• - market share;
• - the degree of novelty of the goods sold;
• - payback period of capital investments;
• - degree of monopolization, price elasticity, etc.;
• - the financial position of the organization;
• - Relations with other manufacturers in the industry, etc.

The main types of pricing strategies:

• - High price strategy (cream skimming strategy) - applied from the very beginning of the appearance of a new product on the market. It sets the highest possible price, designed for a consumer who is ready to buy a product at that price. Such a strategy provides a sufficiently large profit margin, allows you to restrain consumer demand, helps to create an image of a quality product among buyers, and is effective only if there is some restriction of competition. The condition for success is the existence of sufficient demand.
• - Average price strategy (neutral pricing)- pricing for new products is carried out on the basis of accounting for actual production costs, including the average rate of return on the market.
• - Low Price Strategy (price breakthrough strategy, market penetration strategy) - is used to attract the maximum possible number of buyers - the organization sets a significantly lower price than competitors' similar products. This strategy is used only when large volumes of production allow the total mass of profit to compensate for its losses on a separate product, and has an effect with elastic demand if the increase in production volumes reduces costs.
• - Target price strategy. A number of strategies are used here. Psychological price strategy - the price is determined at a rate slightly below the round sum, while the buyer is given the impression of a very exact definition production costs and the impossibility of cheating. Prestigious pricing strategy - based on setting high prices for goods of very high quality. Long term price- installed on consumer goods, valid long time and hardly subject to change.
• - Strategy flexible price - is based on prices that react quickly to changes in supply and demand in the market.
• - Linked pricing strategy (moving price strategy)- is based on the fact that the price is set almost in direct proportion to the ratio of supply and demand and gradually decreases as the market is saturated. It is used most often for products of mass demand. The purpose of such a strategy is to prevent competitors from entering the market. When establishing such a strategy, it is necessary to constantly improve product quality and reduce production costs.
• - Follow the leader strategy the price of a product is set based on the price offered by the main competitor that dominates the market. The condition for success is the existence of sufficient demand.

Pricing policy is the actions of not only pricing entities, but also state authorities and local governments, which are aimed at implementing price regulation in all areas of activity. There are methods of direct and indirect state regulation of prices.

Methods of direct price regulation by the state:

• - administrative price setting;
• - "freezing" of the price;
• - setting a price limit;
• - regulation of the level of profitability;
• - setting standards for determining prices;
• - declaration of prices, etc.

Methods of indirect price regulation by the state:

• - taxation;
• - regulation of money circulation;
• - salary;
• - credit policy;
• - regulation of public spending;
• - setting depreciation rates, etc.

With methods of direct 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. With methods of indirect price regulation, the state sets discount rates for interest, taxes, income, the level of the minimum wages, depreciation rates, etc.

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 part of the total output, none of them contributes great influence to 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 vary in quality and external design. 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

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 penetrate 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

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. In addition, full costs include fixed costs not associated with 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 the starting point for pricing, 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 product.

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.

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 at the enterprise, the level of production costs and others. internal factors, as well as the state and development 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 in the pricing policy the existing internal and external restrictions on 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, an enterprise can also set short term goals 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 manufacturers 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 fairly large profit margin at a relatively high costs in the first period of the release of goods;

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 material costs, which small and medium-sized firms cannot afford, because 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 very high quality products 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 focus on different types of 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 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. In many cases, free retail prices are set for imported consumer goods 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 mark-up 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 options prices, their impact on the volume of sales needed to break even and achieve a target profit, as well as an analysis of 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 pricing methods, 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 a 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 a very limited opportunities influence on prices. Under these conditions, in the market of homogeneous goods, such as food products, raw materials, the company does not even have to make decisions on prices, its main task is to control its own production costs.

However, firms operating in an oligopolistic market try to sell their goods at a uniform price, since each of them is well aware of the prices of its 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 factors implementation, such as geographical differences in costs and demand, the intensity of demand in certain market segments, seasonality, etc. Various types of price modifications are used: a system of discounts and surcharges, 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.

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 provided to those firms or agents that are part of the sales network of the manufacturing enterprise, provide storage, accounting for 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, bonuses or compensation to the consumer who bought the product in retail and sent the corresponding coupon to the manufacturing enterprise; special interest rates when selling goods on credit; warranty terms and contracts maintenance etc.

Modification of prices on a geographical basis is associated with the transportation of products, regional characteristics of supply and demand, the level of income of the population and other factors. Accordingly, uniform or zonal prices may apply; taking into account the cost of delivery and insurance of goods, based on the practice of foreign economic activity, the FOB price, or the franking system (ex-supplier's warehouse, ex-works, ex-border, etc.) is used.

It is customary to talk about price discrimination when a company offers the same products or services in 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.

Price policy — an extremely important tool of a commodity producer, however, its use is fraught with risk, since if it is handled ineptly, the most unpredictable and negative results in terms of their economic consequences can be obtained. And it is absolutely unacceptable for the company to have no pricing policy as such.

In order to differentiate these factors in the process of determining the pricing policy, one should rely on clearly formulated main corporate and marketing goals for one or another sufficiently a long period. In other words, when developing and implementing a pricing policy, one should be based on the company's strategic attitudes and the tasks they define. Figure 13.1 shows a relatively broad set of pricing objectives. Of course, it does not at all follow from it that a company, even a very large one, strives to achieve all the listed goals (the number of which, by the way, can be significantly expanded): firstly, simultaneous work to achieve them is ineffective due to the dispersal of forces and means; secondly, there are mutually exclusive goals - for example, obtaining the maximum profit during a period of large-scale development of new markets, requiring high costs funds.

Figure 13.1 - Main objectives of the pricing policy

The nature of the goals and objectives of the company is reflected in the features of the pricing policy: the larger, more diverse and more difficult to achieve the company-wide goals, strategic goals and objectives in the field of marketing, the more difficult the goals and objectives of the pricing policy, which, in addition, depends on firm size, product differentiation policy, industry affiliation of firms.

We list several aspects of the formation of pricing policy:

· determination of the place of the price among other factors of market competition;

application of methods that help optimize settlement prices;

choice of leadership strategy or strategy following the leader when setting prices;

Determining the nature of the pricing policy for new products;

· formation of a pricing policy that takes into account the phases of the life cycle;

· the use of basic prices when working in different markets and segments;

Accounting in the pricing policy of the results, comparative analysis ratios of "costs / profits" and "costs / quality" for their company and competing firms.

The pricing policy implies the need to establish a firm-my initial (base) price for their goods, which it reasonably varies when working with intermediaries and buyers.

The general scheme for determining such a price is as follows:

1) formulation of pricing objectives;

2) determination of demand;

3) cost estimation;

4) analysis of prices and products of competitors;

5) choice of pricing methods;

6) setting the base price.

Subsequently, when working in markets with different and changing conditions, a system of price modifications is developed.

Price modification system:

1. Geographic price modifications take into account the requirements of consumers of individual regions of the country, occupying large areas, or individual countries in whose markets the company operates.

In this case, five main geographic strategy options are used:

- strategy 1: manufacturer's selling price at the place of production (ex-works). Transportation costs are borne by the buyer (customer). The disadvantages and advantages of such a strategy for the seller and the buyer are obvious;

- strategy 2: single price. The manufacturer sets a single price for all consumers, regardless of their location. This price setting strategy is the opposite of the previous one. In this case, consumers located in the most remote territory win the price;

- strategy 3: zone prices. This price setting strategy is intermediate between the first two. The market is divided into zones, and consumers within each of the zones pay the same price. The disadvantage of the strategy is that in the territories located near the conditional boundaries of the division of zones, the prices for goods differ significantly;

- strategy 4: accrual to all buyers, regardless of the actual place of dispatch of the goods, of additional freight costs in addition to the selling price, accrued from the selected basis point to the buyer's location. In the process of implementing this strategy, the manufacturer may consider several cities as a base point (freight basis);

- strategy 5: payment of freight costs (their part) at the expense of the manufacturer. It is used as a method of competition to enter new markets or to maintain its position in the market when competition intensifies. By fully or partially paying for the delivery of goods to the destination, the manufacturer creates additional advantages for himself and thereby strengthens his position in comparison with competitors.

2. Price modifications through a discount system in the form of cash discounts (discount for cash payment or before the deadline), wholesale discounts (price reduction when buying a large quantity of goods), functional discounts (trade discounts provided to intermediary firms and agents that are part of the manufacturer's distribution network), seasonal discounts (offer after - or pre-season discounts), other discounts (offset of the price of a similar old product handed over by the buyer; discounts on the occasion of a holiday, etc.).

3. Price modification for sales promotion carried out in a variety of forms: price-bait (a sharp temporary reduction in retail prices for well-known brands); prices set for the time of special events (valid only during certain events or when using special forms of offering goods - seasonal or other sales); premiums (cash payments to the final buyer who bought the product in retail trade and presented the coupon to the manufacturer); favorable interest rates when selling on credit (a form of sales promotion without price reduction; widely used in the automotive industry); warranty conditions and maintenance contracts (may be included in the price by the manufacturer; services are provided free of charge or on preferential terms); psychological modification of prices (the possibility of offering one's own similar product at a lower price, for example, the price tag may indicate: “Price reduction from 500 thousand to 400 thousand rubles”).

4. Price discrimination occurs when a manufacturer offers the same products at different prices. The main forms of discrimination, which are often integral part pricing policy are: modification of prices depending on the consumer segment (the same product is offered to different categories of consumers at different prices); modification of prices depending on the forms of the product and differences in its application (with small differences in the forms of manufacture and use, the price can be significantly differentiated, and at constant production costs); modification of prices depending on the image of the company and its specific product; price differentiation depending on location (for example, selling the same product in the city center, on its outskirts, in countryside); modification of prices depending on the time (for example, telephone tariffs may depend on the time of day and days of the week).

However, price discrimination is justified under the following conditions: its compliance with laws, invisibility of its implementation, a clear division of the market into segments, the exclusion or reduction to a minimum of the possibility of resale of "discriminated" goods, not exceeding the costs of segmenting and controlling the market of additional revenues from price discrimination .

The pricing policy of the manufacturer, presented in a condensed form, reflects mainly world practice. However, as market relations develop in Russia, domestic producers begin to develop and use a well-thought-out pricing policy that takes into account the specifics of local conditions.

The main material goal of European business, embodied in its pricing policy, is to make a profit. Other goals (the maximum possible turnover, the maximum possible sales) are also of subordinate importance. The predominance of one or another material goal essentially depends on the size of the firm. Thus, approximately 55% of small firms named “profit commensurate with costs” and “industry-wide profit” as their goals, while large firms cited “highest possible profit”. The responses also varied considerably across industries. For example, the setting for “profit commensurate with costs” was most often called in the textile and clothing industries, the market of which had already passed the stage of maturity, and the desire for “maximum profit” was typical for representatives of the fields of electronics, electrical engineering and precision mechanics, the market of which is in the stage of dynamic development.

Two-thirds of the firms surveyed stated that they were striving to expand their market share in the profile of their main products - moreover, they consider the achievement of this goal to be realistically achievable; 3/4 of the surveyed firms from sectors whose markets are in the growth stage would like to increase their market share. In weaker industries, more than half of the firms surveyed would only like to maintain their market share. In addition, according to the survey, large firms with strong market positions (80% of firms) seek to further strengthen them - among small businesses, this share is 60%

Decisions to develop a new product also depend on the size of firms. Small firms usually decide to develop a new product only if there is a specific order for it. Large firms, having significant financial reserves and room for maneuver, make appropriate decisions after conducting large-scale marketing research and market experiments.

The main goal of pricing policy in marketing- maximize profit for a given volume of sales per unit of time. When developing a pricing policy, each enterprise independently determines for itself the tasks to be solved, which can be diametrically opposed, for example:

revenue maximization when revenue is more important than profit. For example, for seasonal goods or goods with a limited shelf life;

price maximization, when the image of the product is more important than sales volumes. For example, to artificially limit demand due to the inability to satisfy it (demarketing);

maximizing sales volumes when market retention is more important than profit. For example, to hold or conquer the market;

increasing competitiveness when sales volume is determined by price. For example, when selling goods with high elasticity of demand;

ensuring a given profitability, when maintaining profitability comes first. For example, in the production and sale of consumer goods.

Types of pricing policy

Cost-based pricing policy (setting prices by adding target profits to calculated production costs; setting prices with reimbursement of production costs). This is the easiest way to set a price.

Suppose that the unit cost of goods (production costs) is 100 rubles. The manufacturer intends to set a margin (planned profit) at 20% of the cost of goods. The final price of the item is calculated as follows:

This method is acceptable only if the price found with its help allows you to achieve the expected sales volume. This method, however, is still popular for a number of reasons.

First, this method does not require constant price adjustments in line with changes in demand.

Secondly, when all companies in an industry use this pricing method, prices are set at approximately the same level, and price competition is reduced to a minimum.

High price policy (price level policy; cream skimming policy). A pricing strategy that consists in setting a high initial price for a new product in order to maximize profit from all market segments willing to pay the required price; provides a smaller volume of sales with more income from each sale.

Companies entering the market with new products often set high prices for them in order to “take off” profit layer by layer. The benefits of this pricing policy include:

creating an image (image) of a quality product with the buyer as a result of a high initial price, which facilitates the sale in the future with a price reduction;

Ensuring a sufficiently large profit margin at relatively high costs in initial period release of goods;

facilitating a change in the price level, as buyers are more accepting of price cuts than price increases.

The main disadvantages of this pricing policy is that its implementation, as a rule, is limited in time. A high price level stimulates competitors to quickly create similar products or their substitutes. Therefore, an important task is to determine the moment when it is necessary to start reducing prices in order to suppress the activity of competitors, stay in the developed market and conquer its new segments.

Market penetration policy (P breakthrough policy; low price policy). A pricing strategy that consists in setting a relatively low price for a new product in order to attract the maximum number of buyers and gain a larger market share.

Not all companies start by setting high prices for new products, most turn to to market penetration. In order to quickly and deeply penetrate the market, i.e. to quickly attract the maximum number of buyers and win a large market share, they set a relatively low price for a new product. A company that uses such prices takes a certain risk, expecting that the growth in sales and revenue will compensate for the shortfall in profits due to lower unit prices. This type of pricing policy is available for large firms with a large volume of production.

To establish low prices, the following conditions are necessary:

the market should be highly price sensitive, then a low price will lead to an increase in sales;

with an increase in sales, the costs of production and marketing should decrease;

the price must be so low that the company can avoid competition, otherwise the price advantage will be short-lived.

Market segmentation policy (differentiated pricing policy; differential pricing). A type of pricing in which a product is sold at several different prices without taking into account differences in costs.

Differentiated pricing takes several forms. Price differentiation by consumer type means that different categories consumers pay for the same product or service different prices depending on the financial situation. Losses or shortfall in profits from the sale of goods at low prices to less wealthy buyers are compensated by selling them at high prices to buyers whose level of well-being allows it. Museums, for example, give discounts to students and pensioners.

At the price differentiationby type of goods Different product variants are priced differently, but the difference is not based on differences in cost.

Price location differentiation means that the company assigns different prices for the same product in different regions, even if the costs of producing and selling them in these regions do not differ. For example, theaters charge different prices for different seats based on the preferences of the public.

At the price differentiationby time prices vary depending on the season, month, day of the week and even time of day. Rates for utility services provided to commercial organizations vary depending on the time of day, and are lower on weekends than on weekdays. Telephone companies offer reduced rates at night and resorts offer seasonal discounts.

In order for differential pricing to be effective, certain conditions must exist:

the market must be segmentable, and the segments must differ in terms of demand;

consumers of the segment that received a lower price should not be able to resell the product to consumers of other segments where a higher price is set for it;

in the segment to which the company offers a product at a higher price, there should not be competitors who could sell the same product cheaper;

the costs associated with segmenting the market and tracking its state should not exceed the additional profit received due to the difference in prices for goods in different segments;

differential pricing should be legal.

Psychological pricing policy (non-rounded price policy). One of the types of pricing, taking into account not only the economic component, but also the psychological impact of the price; the price is used as a source of information about the product.

Price is one way to convey some information about a product. So, many buyers judge the quality of a product, primarily by its price. A bottle of perfume priced at 3,000 rubles may contain perfume for only 100 rubles, but there are many buyers who are willing to pay these 3,000 rubles, because such a price says a lot.

For example, according to one study examining the relationship between price and quality perceptions, more expensive cars are perceived by buyers as higher quality.

Target rate of return policy is carried out in those cases when the market offers not a fundamentally new product, but some kind of mass production that has been produced for many years, but is modernized from time to time. Prices are set on the basis of a rate of return, which is determined on the basis of production costs, prices and sales per row. recent years, as well as taking into account the competitive position occupied by the firm in the market.

Follow the leader policy(price leader policy)

Using this approach to new product pricing does not mean setting the price of your company's new products in strict accordance with the price level of the leading company in the market. The point here is only to take 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 only within certain limits. These limits are determined by the quality and technical superiority of your company's products over those of the leading firms on the market. And the less different your firm's new products are compared to the majority of products offered in a particular market, the closer the price level for new products to the "standards" set by the industry leader.