What is the price policy based on? Types of pricing policy

One of the key market instruments influencing the processes of production, exchange and consumption is the price, which is formed under the influence of the relationship between demand and supply of goods in a particular market.

The price gives the company the opportunity to reimburse all costs for the production and sale of products, to make a profit necessary for development. Through pricing, an enterprise can influence sales volumes and, accordingly, the formation of a production program.

How economic category price is the monetary value of a commodity. The cost is determined by the socially necessary costs for the production and sale of goods and is revealed on the market. The price is a link between the producer and the consumer, i.e., a tool to ensure the balance of supply and demand. The essence and role of the price is revealed in its functions:

guiding- is manifested in the fact that the price reflects market conditions and is a guide for sellers and

buyers in decision-making (what to sell, in what quantities, to expand or reduce production volumes, etc.);

• accounting and measuring- lies in the fact that the price reflects the social necessary costs on the production and sale of products and allows you to measure the volume of proceeds from the sale of products, income, expenses, calculate profit based on them;
• stimulating- manifests itself in stimulating an increase in production, improving its quality, updating the range, saving costs, introducing innovations, etc.;
• governing- consists in the impact of price on the supply and demand of individual goods.

All these price functions are interconnected and complement each other.

In accordance with certain characteristics and depending on the mechanism of formation, the following classification of prices is possible.

• 1. By industries and sectors of the economy differentiate prices for industrial products, purchase prices for agricultural products, prices for construction products, tariffs for services, foreign trade (export or import) prices.
• 2. By the degree of state participation in pricing distinguish between free and regulated prices. Free prices are formed in the market under the influence of changes in its conjuncture. Regulated prices are formed taking into account the impact of the state on their value by directly limiting their growth, regulating individual price elements or other methods.
• 3. By stages of distribution prices differ depending on at what stage of commodity circulation they are formed: wholesale (selling) prices of the enterprise; wholesale (selling) prices of the industry; wholesale prices of resellers, retail prices (Figure 7.2).

Figure 7.2 - Composition of different types of prices

Wholesale (selling) price of the enterprise- this is the price at which products are sold by manufacturers to other enterprises or marketing organizations. It consists of the cost of goods, the profit of the enterprise and indirect taxes (excise and value added tax).

Wholesale (selling) price of the industry- the price at which products are sold by industry marketing organizations in the order wholesale trade. It includes, in addition to the wholesale price of the enterprise, a wholesale and marketing surcharge (costs plus profits of supply and marketing organizations) and the value added tax (VAT) corresponding to this surcharge.

Wholesale price of resellers- this is the price of wholesale trade organizations used in settlements with buyers of goods. It includes the wholesale price of the enterprise (or the wholesale price of the industry) and the wholesale trade markup, as well as the corresponding VAT.

Retail price- the price at which goods are sold in the retail network to end consumers. Retail prices are formed by adding a trade markup to wholesale prices to cover distribution costs and making a profit, and the corresponding VAT.

• 4. By transport component prices are subdivided depending on to what point on the way of moving the product to the consumer, transportation costs are included in the price.
• 5. By expiration date prices are divided into permanent and temporary (seasonal). Fixed prices are prices for which the expiration date is not predetermined. Temporary (seasonal) prices are set mainly for seasonal products, and their duration is limited.
• 6. By the nature of the price information prices vary according to the specifics of the information they contain. For example, the prices of actual transactions contain information about the real prices for the purchase and sale of goods on the market; auction prices inform market participants about the possibilities of buying or selling goods at auction; exchange prices contain information about the results of exchange transactions, etc.

Pricing in an enterprise is the process of setting prices for specific goods.

The main stages of pricing are:

• identification and analysis of pricing factors;
• substantiation of goals pricing policy enterprises;
• choice of pricing methods;
• choice of pricing strategy;
• determination of price, formation of a system of discounts, allowances.

Identification of pricing factors has two aspects. First, it is an analysis external factors- demand, supply on a specific commodity market, pricing policy of competitors, market leaders, state regulation of prices. Second is the analysis internal factors that determine the possible price of the goods: the cost of production, quality. At this stage, the company determines its strengths and weak sides, market opportunities and risks.

At the next stage, it is necessary to justify the objectives of the pricing policy of the enterprise.

Enterprise pricing policy- this is general principles, which it adheres to in the process of pricing for its products, a model for making decisions about price behavior

on the various types markets in order to realize the long-term interests of the enterprise.

The objectives of the pricing policy may be different. Usually, the following main goals are distinguished: growth in sales, maximization of profit from sales, increase in market share. The objectives of the pricing policy are long-term, i.e. they are designed for enough a long period. Therefore, along with the goals of the enterprise, they determine the tasks that must be solved in the process of production and sale of products. These tasks can be:

• development of a set of measures to reduce the cost of production;
• providing leadership in the quality of certain types of products;
• ahead of competitors in the development of production and the introduction of new products to the market;
• conducting marketing research;
• development of measures to stimulate sales (advertising, using a discount system, providing various services to customers, etc.).

Depending on the characteristics of the product, size and financial condition enterprises, as well as the goals and objectives set for the calculation of prices, various methods can be used that can be used in isolation or in various combinations with each other.

Main pricing methods:

1. Method of total costs, or "Costs + profit". The essence of this method is to set the price by adding the target profit to the total costs of production and sale of products. This is the most common pricing method and is used in enterprises with a clearly defined product differentiation.

Example 7.3. Calculation of the price of a unit of production by the "Cost + profit" method.

Projected annual production - 11,500 units. products. According to calculations, variable costs per unit of product -1900 rubles. (1.9 thousand rubles). The company plans the amount of fixed costs 14 950 thousand rubles. in year. Target profit 3200 thousand rubles.

Full costs of production and sales of products (full cost):

The necessary proceeds from the sale of products to make a profit 3200 thousand rubles. ("Cost + Profit"):

Unit price

The increase in production volumes at existing production facilities is a factor in reducing the cost of production. In the considered example, the unit cost of production is 3,200 thousand rubles. (36,800: 11,500). If you increase the volume of production by 10% and bring it to 12,695 units. (11,500 x 1.10), then the total cost of production will be 39,070.5 thousand rubles, including:

• - variable expenses 24,120.5 thousand rubles (1900 x 12,695);
• - fixed costs will remain unchanged - 14,950 thousand rubles.

The unit cost of production will be 3,078 thousand rubles. (39,070.5: 12,695), i.e., it will decrease, which will allow the enterprise, at the same price, to receive more profit from the sale of a unit of production or, if necessary, reduce the price.

If the enterprise sets the task to receive in the coming year a profit from the sale of products in the amount of 3200 thousand rubles. and has the ability to sell 12,695 units. products, the price per unit of production can be reduced from 3.478 thousand rubles. up to RUB 3,330 thousand

Necessary proceeds from the sale of products (total costs and profits):

Unit price

A lower price will allow the company to attract customers and increase its market share.

The Cost + Profit pricing method is effective under the following conditions:

• setting prices for new products;
• single orders;
• price planning in industries where most enterprises use this method;
• production of goods for which demand exceeds supply.
• 2. ROI method based on the fact that the result of the project should provide a profit not lower than the cost of borrowed funds. When using this method, the amount of interest on the loan is added to the full cost of a unit of production. This method is mainly used when making decisions to increase the volume of production of a new product for the enterprise.

Example 7.4. Calculation of the price by the method of return on investment.

The projected annual production of a new product is 3500 units, the estimated variable costs per unit of product are 1800 rubles. total amount fixed costs - 7,000,000 rubles. The project will require additional financing (loan) in the amount of 10,000 thousand rubles. at 15% per annum.

Total cost per unit of output (the sum of variable and fixed costs per unit of output)

Interest on a loan

Interest on credit per unit of production:

Unit price

3. Method marketing estimates. This method involves focusing on demand, on the price at which the buyer is ready to purchase this product. In accordance with the law of demand, an increase in the price of a good is accompanied by a decrease in the quantity demanded, and vice versa, a decrease in the price of a good increases demand. The degree of quantitative change in demand in response to price changes characterizes the price elasticity of demand. Price elasticity coefficient ( To ce) can be calculated on the basis of the ratio of the rate of change in demand to the rate of change in the price of goods:

where T izmsdemand - the rate of change in demand for goods,%;

T price change- rate of price change, %.

The coefficient shows by what percentage the demand will increase (decrease) with a decrease (increase) in the price of a product by 1%.

The change in demand under the influence of price changes is determined on the basis of marketing research.

Example 7.5. Calculation of the coefficient of price elasticity of demand for goods.

As a result of marketing research, it was revealed that with a decrease in the price of a product by 5%, the demand for it increased by 1.5%. Price elasticity coefficient (K tse) will be 0.3 (1.5% : 5%).

This means that a 1% decrease in price will lead to an increase in demand for the product by 0.3%.

Depending on the value of the elasticity coefficient, the following types of demand are distinguished:

• elastic demand, with a coefficient of more than 1. This means that the rate of change in demand is higher than the rate of price change. With elastic demand for a product, it is effective to reduce the price to increase the volume of sales of products;
• inelastic (maloelastic) demand, with a coefficient of less than 1. The growth rate of demand with a decrease in price is low. With inelastic demand, the company may, if necessary, raise the price of the product, since this will not entail a significant decrease in sales volumes;
• unit elasticity of demand, with a coefficient equal to 1. This means that demand changes at the same rate as price. With unit elasticity of demand, prices should be managed depending on the market situation, taking into account the behavior of competitors.

At enterprises, when setting prices for products by the method of marketing estimates, they calculate the consequences of a decrease or increase in the base price and make the final decision based on their target orientation for the development of economic activity.

Example 7.6. Determining the consequences of lowering the price of a product with high price elasticity.

The price elasticity of demand for the company's products is characterized by a coefficient of 1.9. The planned volume of production in the I quarter is 1000 units. The cost of production and sales of products is 1,000 thousand rubles, including fixed costs - 450 thousand rubles. Variable costs per unit of production - 550 rubles. The initial price of a unit of production is 1175 rubles. (without VAT). In order to increase sales, the company plans to reduce the price by 50 rubles.

Revenue from the sale of products at the original price

Profit of the enterprise when selling products at the original price

Rate of price reduction

Growth rate of sales of products, taking into account the coefficient of price elasticity of demand

The volume of sales of products with a decrease in price, taking into account the coefficient of price elasticity

Revenue from the sale of products at a price reduced by 50 rubles:

Change in revenue from sales of products with a decrease in price

Cost of production and sales 1081 units. products:

• variable expenses 550 x 1081 \u003d 594,550 (rubles);
• fixed costs 450,000 rubles;
• total cost of 1,044,550 rubles. (594,550 + 450,000).

Profit from the sale of products at a reduced price

Change in the amount of profit when the price decreases

Thus, by reducing the price by 4.25%, the company increases the physical volume of sales by 8.1%, the proceeds from product sales - by 3.5%. This is important for maintaining and strengthening its market position. However, the company loses profit in the amount of 3400 rubles. The degree of reduction in the amount of profit is insignificant (-1.9%), but if the goal of the enterprise is to maximize profits, then it is not advisable to reduce the price.

4. Method based on "perceived value". When setting prices using this method, the main guideline is the perception of the product by the buyer. At the same time, the seller uses non-price measures of influence: provides after-sales service, special guarantees to buyers, the right to use the trademark in case of resale, etc.

The choice of pricing method depends on specific situations, the working conditions of the enterprise, the characteristics of the product, etc.

In accordance with pricing policy The company chooses different pricing strategies.

Pricing Strategies is a set of means and methods by which the goals of pricing are realized. Pricing strategies allow you to set an initial price and develop an action plan to change it, taking into account market conditions.

In world practice, the most widely used classification of pricing strategies by the American economist Gerard J. Tallis, according to which the following types of strategies are distinguished:

• differentiated pricing strategies;
• competitive strategies;
• assortment strategies.

Strategy differentiated prices involves setting different prices for the same or similar product for different consumer groups, taking into account their heterogeneity (in terms of income, product quality requirements and after-sales service, etc.).

The differentiated pricing strategy includes:

• discount strategy in the "second" market;
• seasonal (periodic) discount strategy;
• random discount strategy.

The strategy of discounts in the "second" market (demographic, geographic, external) involves the provision of discounts on prices for the same product or service, depending on the volume of the consignment of goods, the volume of purchases achieved, prepayment and other conditions.

The strategy of seasonal (periodic) discounts is to provide discounts on the prices of the same product or service during off-season sales, for example, in spring and summer for winter sports equipment or electricity tariffs at different times of the day, etc.

A random discount strategy involves giving discounts on the same product or service on a random basis on a non-permanent basis, for example, on a certain day at a limited time.

Competitive pricing strategies include:

• a strategy of high prices (the strategy of "skimming");
• low price strategy (market penetration strategy);
• price signaling strategy.

A cream-skimming pricing strategy involves charging a high price for a product or service until the product's buyer segment narrows or the market becomes competitive. This strategy allows early life cycle goods to earn high profits. In the future, the prices of goods are slowly declining.

The market penetration strategy involves setting low prices when bringing a product or service to the market in order to conquer it. This strategy is useful when selling products with high price elasticity, when low prices allow you to increase sales revenue.

The strategy of "signaling" prices consists in setting high prices for goods or services in order to "signal" a higher quality of a product or its uniqueness.

Assortment pricing strategies include:

• product bundle strategy;
• different profitability strategy;
• image-price strategy.

The product bundle strategy is mainly used in trade organization and assumes that the set price for a product bundle is lower than the sum of the prices for the individual products included in the bundle.

The strategy of different profitability is to set high prices for some varieties of products and low prices for others. At the same time, in general, the enterprise receives an average rate of profit from the sale of these goods.

The "image-price" strategy involves setting higher prices for prestigious products manufactured by enterprises with a stable reputation in the market, under a well-known trademark.

Pricing policy, selected pricing strategies have a significant impact on the sales volumes of enterprises' products.

Marketing strategy
Marketing Management ( English)
Market dominance ( English)

Price policy- these are the principles and methods for determining prices for goods and services.

In the future, as part of the implementation of the strategy, tactical activities(to stimulate sales), including systems of price discounts and non-price incentives for buyers.

In the course of implementing the pricing policy, the company's management must adjust immediate measures and monitor the timing of the change in strategy. Prices are actively used in competition to ensure sufficient level arrived. Price determination of goods and services is one of the critical issues any enterprise, because optimal price can provide it financial well-being. The pricing policy pursued largely depends on the type of goods or services offered by the enterprise. It is formed in close connection with the planning of the production of goods or services, the identification of consumer requests, and sales promotion. The price should be set in such a way that, on the one hand, it satisfies the needs and requirements of buyers, and, on the other hand, it contributes to the achievement of the goals set by the enterprise, which are to ensure the receipt of sufficient financial resources. The pricing policy is aimed at setting such prices for goods and services, depending on the prevailing market conditions, which will make it possible to obtain the amount of profit planned by the enterprise and solve other strategic and operational tasks.

Within the framework of the general pricing policy, decisions are made in accordance with the position in the target market of the enterprise, methods and marketing structure. The general pricing policy provides for the implementation of coordinated actions aimed at achieving the long- and short-term goals of the enterprise. At the same time, its management determines the overall pricing policy, linking individual decisions into an integrated system: the relationship of product prices within the company's nomenclature, the frequency of using special discounts and price changes, the ratio of prices with competitors' prices, the choice of a method for setting prices for new products.

The determination of the pricing policy is based on the following questions:

• what price the buyer would pay for the product;
• How does price change affect sales?
• what are the components of the costs;
• what is the nature of competition in the market segment;
• what should be the level of the threshold price (minimum) that ensures the break-even of the company;
• what kind of discount can be given to customers;
• whether delivery of goods and other additional services will affect the increase in sales.

The overall policy of the enterprise should ultimately be aimed at meeting specific human needs. However, if the consumer hesitates about which product to prefer, often based on unconscious considerations, the company, through an active marketing policy, should try to influence his choice in favor of his products. Therefore, the definition of pricing policy is one of the major areas practical activities enterprises, since under any conditions it is unacceptable to set prices without a serious analysis possible consequences each of the possible solutions to this problem.

The pricing policy reflects the overall goals of the company, which it seeks to achieve by forming the prices of its products. Pricing policy is the general principles that an enterprise intends to adhere to in setting prices for its goods or services.

By using various methods pricing sets a specific price depending on certain circumstances or goals. To make a final decision on prices, the manager must consider all the proposed pricing options. In the process of setting the price of products, the enterprise (firm) must clearly define the goals that it wants to achieve. The clearer the understanding of them, the easier it is to set prices for new products. Possible pricing objectives include:

• ensuring the survival of the company;
• maximization of current profit;
• gaining leadership in terms of "market share";
• gaining leadership in terms of "product quality";
• cream skimming policy;
• short-term increase in sales volumes.

When analyzing the price of a competitor, the main attention should be paid to the system of discounts that he provides. In world practice, there are about 20 types of price discounts:

• Bonus discounts for turnover are given to regular customers depending on sales turnover.
• Progressive discounts are provided to the buyer for the quantity, volume of purchase, series.
• An exchange credit or discount is provided for the return of an old product previously purchased from this company.
• Export discount when selling goods for export.
• Functional discounts or discounts in the field of trade are provided to manufacturers by goods distribution services for the performance of certain functions.
• Special discounts are given by the seller to those buyers in whom the seller is more interested.
• Hidden discounts are provided to the buyer in the form of free samples (probes, etc.).

State pricing policy

Price restrictions

They are used by the government to contain inflation (in France in the 1960s as part of indicative planning), as well as to support poor citizens in conditions of high inflation (restrictions on rising prices for essential goods).

see also

Literature

• Daly J. L. Efficient pricing is the foundation competitive advantage. - M.: Publishing House "Williams", 2004.
• Milgrom P, Roberts J. Economics, organization and management: In 2 vols. - St. Petersburg: School of Economics, 1999.

Tutorials

• Gerasimenko V.V. The firm's pricing policy. - M.: Finstatinform,

Previous edition: Nagle T. G., Holden R. C. Strategy and tactics of pricing / 2nd ed. - St. Petersburg: Peter, 2001

• Tarasevich V. M. Pricing policy of the enterprise. - St. Petersburg: Peter, 2003
• Evdokimova T. G., Makhovikova G. A., Zheltyakova I. A., Pereverzeva S. V. Theory and practice of price management. - St. Petersburg: Neva,
• Lipsits I.V. Pricing (Pricing management in an organization) / 3rd ed. - M.: Economist, 2004

Previous edition: Lipsits I.V. Commercial pricing / 2nd ed. - M.: Publishing house BEK,

• Nagle T. G. Strategy and tactics of pricing / 3rd ed. - St. Petersburg: Peter, 2004
• Prices and pricing: Textbook for universities / Ed. V. E. Esipova. 4th ed. - St. Petersburg: Peter, 2005
• Parshin V.F. Pricing policy of the enterprise: a manual / VF Parshin. - Minsk: Vysh. school, 2010. - 336 p.

Links

gooper.ru is an information resource that reflects the pricing policy of the countries of the world. The site contains prices for a basket of products and services.

Notes

Wikimedia Foundation. 2010 .

Theoretical foundations of pricing policy

Price policy is a behavioral philosophy or general operating principles that a firm intends to adhere to in setting prices for its products or services. In accordance with the basic principles of pricing policy, the pricing strategy of the company is developed.

The firm's pricing strategy is long-term measures to set and change prices; This is the choice by the firm of the possible long-term dynamics of changes in the basic price of goods in market conditions. A pricing strategy can be developed for different markets, products, the time the company has been on the market, and other grounds. Pricing tactics are short-term and one-time events. These include usually all kinds of discounts and surcharges to prices. Tactical measures may run counter to the strategic goals of the firm.

The essence of the entire pricing policy is revealed in the process of planning and implementing strategic and tactical actions. Pricing policy is not associated with such significant costs that are necessary for the implementation of product policy, distribution policy and product promotion. At the same time, it must be sufficiently justified, and its implementation must ensure high level solving such problems as setting prices for new products, timely response to price changes among competitors, ensuring price flexibility, timely taking into account changes in the micro- and macro-environment, in the field of promotion and distribution policy, product policy.

The price level is influenced by a number of various factors. These are production costs, the level of competition, the current economic situation, the political and legal environment, etc. Among all factors, the following are of paramount importance: costs, the ratio of supply and demand, the level of competition, the level of marketing implementation (the price level depends on the stage ZhTsT), state pricing policy. The pricing process requires a comparison of the elements of the pricing policy with the general marketing view of the enterprise on its own activities and behavior. external environment.

Types of pricing policy

In the pricing process, different pricing policies are applied.

The policy of conquering a part of the market It consists in the fact that initially the product is brought to the market at a relatively low price in order to stimulate demand, after conquering a certain market capacity, the company introduces a modified product to the market and starts selling it at a higher price.

Policy of quick receipt of proceeds from the sale is used when a company does not expect a market for their product to exist for a long period of time, or is in dire need of cash. Under such circumstances, the firm seeks to set prices for its products in such a way that the sale of them brings revenue in the short term. High or low price level depends on the following factors:

- stable demand and unchanged costs of production and distribution give reason to expect that the company can quickly get the maximum revenue under the given conditions by using high prices. This option can be applied at the initial and middle stages of the product life cycle, when there is an increase in sales;

- the presence of elastic demand and lower unit costs means that the firm can achieve the same result using low price tactics. This option is used, as a rule, at the final stage of the product life cycle.

Thus, the choice of a particular pricing policy depends on the company's goals and how it assesses the situation on the market.

The policy of covering costs and ensuring the necessary rate of return per unit of output is that the price is formed on the basis of unit costs and a reasonable rate of return required by the company to carry out its activities.

Market segmentation policy assumes that the company analyzes the market, divides it into segments and, depending on the conditions, establishes different prices for the same goods at the same cost of production.

Follow the leader policy similar to the market price tactics.

Psychological pricing policy built on a deep knowledge of the psychology of buyers.

Preferential Price Policy involves the use of preferential or promotional prices, which are integral part the company's marketing strategy. Incentive prices, which are unprofitable for the firm, are set at the level of retail prices for the final consumer. Such prices for goods are set in order to attract customers to the store in the expectation that they will also purchase other goods that are simultaneously offered at normal prices. Setting unprofitable prices, as a rule, on the most popular food products(bread, butter, etc.), stores can increase their turnover significantly. But for this it is necessary to choose such goods, the prices of which are easily remembered by buyers, and keep them at a set low level. Customers will repeat their purchases and eventually get used to going to this store. But too long a sale of goods at artificially low prices can lead to the fact that in the minds of buyers these prices will be considered normal. This means that preferential pricing policies may not be suitable in the long run. Therefore, the store needs to gradually increase the prices of these products until they reach the cost level.

Elastic (flexible) pricing policy is that the firm can sell its product at one once set price. But the firm can pursue a policy of elastic (flexible) prices depending on the market situation. Stable prices are characteristic of markets where goods are sold in bulk, while flexible prices prevail in markets where individual transactions are made. Flexible prices are used in the sale of industrial goods or the provision of services, as well as in markets for durable goods.

If the firm's products are homogeneous, then the firm is forced to reduce prices to the level set by competitors. If the firm does not reduce the price, then most buyers will buy goods from the seller who turned out to be the market leader as long as the goods are in stock. In the event that a company raises the price of its product in the market of homogeneous goods, other companies may or may not follow it. This will depend on the type of market, on the number of sellers on it (the smaller the number of sellers of goods, the easier it is for firms to conclude price level agreements among themselves, for example, a cartel agreement).

In markets for heterogeneous, differentiated products, the firm has more discretion as to how to respond to price changes made by its competitors. The main point here is the preferences of consumers, since the relationship of the buyer to this product depends on a number of factors, such as the quality and reliability of the product offered, the level of service, the level of after-sales service, its duration and availability, as well as personal considerations and attachments. These circumstances to some extent reduce the importance of the price itself for the buyer, which gives the company, which makes a decision on determining the price, taking into account the actions of competitors, relative freedom. Instead of going directly to change the price, the company can think of a series of combined actions through other elements of the marketing mix that allow you to maintain a certain level of demand. In order to make a decision on how to respond to a competitor's price cut, the company's management analyzes the reasons for the competitor's price cut (for example, the price cut was to capture more market share or to change general level market prices) change in price over time (long-term or temporary change with the aim, for example, of selling off the surplus formed inventory or promotion of the sale of goods in general); impact on market capacity; competitor reaction.

Based on the assessment of the above factors, the firm develops its own action plan aimed at compensating for the decline in prices in the market.

Pricing policy options when prices change.

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. The 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 is a marketing tool that influences the sales success 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:

1. 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.
2. 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.
3. 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.
4. "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.
5. 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:

1. 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.
2. 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.
3. 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.
4. Preferential price policy. The company gets the opportunity to attract new customers through preferential offers. This method is suitable for market expansion.
5. Flexible pricing policy. The cost is determined depending on the capabilities of consumers. Changes quite often.
6. 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-specific) and external (market characteristics) 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.
• The impact of established prices on profitability indicators.
• 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.

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 considering the possible consequences of 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.

Pricing policy of the organization - 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 of the external environment of the organization - the 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 much more low price than similar products of competitors. 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 provides a reduction in 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.
• - Flexible price strategy - 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 authorities state power and local self-government, which are aimed at the implementation of 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.