pricing methods

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pricing methods - economic methods of determining prices.It is well known that the goods are made only for the purpose of their subsequent sale.At the same time the sale of goods should bring some profit to the manufacturer that would enable the business to grow.But if so, the price of the goods determines whether its customers will buy, and if you buy, then there will be sufficient profit.That's why manufacturers are paying particular attention to pricing and the methods of pricing, by which it is implemented.Pricing methods are quite diverse, but this article will discuss the main.

First of all, in the methods of pricing in the market economy, include the full cost method.In order to determine the price of using this method of pricing, it is necessary to consider all the costs of production of the commodity.These costs include the cost of constant and variable capital that was expended per unit of production.In other words, you need to add up the cost of raw materials, equipment and labor costs.Next, you need to add the amount of the resulting rate of return.Determination of such rates of return - one of the most important and complex issues.As a rule, it takes an average rate of profit, which is obtained by companies operating in the country's economy.For example, if the value of all costs will be a hundred rubles, and rate of return of twenty percent, the unit price will be one hundred and twenty rubles.

pricing methods can be quite complex, such is the method of return on investment.The convenience of this method is that it takes into account those credit resources that are available to the enterprise.In today's economy, a growing number of companies get loans from banks for development, ie investment.Therefore, the enterprise is very important take into account the interest that it will be forced to repay the bank, the price of the goods.This, of course, include other costs.For example, if the value of all the costs will be, as in the example above, one hundred rubles, but at the same time, the company will have to pay per unit of product to one percent of the loan repayment, the price of goods will be a hundred and one ruble.

methods of pricing in the market economy include marketing and evaluation.This method is based on a study of whether consumers are willing to buy a product at a lower or higher price than other manufacturers, as well as the assessment of profitability for the company reduce or increase prices.So, if, despite the decline in prices, say one ruble, profit increases, this reduction can be justified.If, however, with an increase in prices for the same ruble profit decreases, it indicates the inadmissibility of price changes.This study allows for a more flexible pricing policy, resulting in a positive impact on performance can be profitability.

All methods of pricing, economic foundations which - profit, calculated to study the situation on the real market.For example, some companies do not carry out an independent pricing, focusing on this issue in the average price.At the same time the company can only keep track of the level of cost of production is maintained at a sufficient level to make a profit.That is why pricing begins with an analysis of the situation with the prices.Only after that the company evaluates how profitable it would be to follow those prices.It is important to remember that companies often are willing to sacrifice profits to conquer new markets or increase the level of awareness.This situation is typical for dumping "wars."