Basic economics.

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Pricing - is the process of formation of the cost of the service or product that is primarily characterized by the ways and methods of establishing the price in relation to all goods.Depending on the method chosen is determined by the development and the achievement of company objectives.Comprehensive analysis of how different factors affect the range of the cost of goods or services, as well as the choice of method, which generates pricing obespechvayut profit growth.

Currently, the most common methods are:

1. cost-based pricing - this is where the starting point, the actual costs (in other words - the cost) for the organization of production of goods (services), implementation and further support.This method is most common.

2. Competitive pricing - is the use of tactics and strategy formation of the cost of the most successful competitors.

3. Method with orientation to demand.In this case, the pricing - a comprehensive analysis and the subsequent formation of prices, taking into account the optimal ratio "price / cost."

Now consider in more detail the problem of pricing.As stated above, the cost method is the most common in the majority of commercial structures.It orients and modern legislation, and economics.Pricing is formed taking into account all costs.They set prices for services that would ensure cost recovery and a stable level of profitability.The main advantage of this method - simplicity and a guaranteed level of income.

pricing method, when taken as a starting point the price of competitors for similar goods or services.Find prices, the company makes the decision on which level to keep the cost of production.This method makes it possible to move away from price competition.However, there are negative aspects.Different companies costs may be absolutely equal.In other words, one can afford to keep prices low and still be in profit, while others, without reducing the costly part, sooner or later, will be bankrupt.

pricing method with orientation on demand is a long and costly.It is based on the perceived value of a product or service.To use this method, you must consider that the perceived value of different people have differences.
This is due to taste, knowledge of the product or service, financial situation and so on.The following values ​​of the perception of value:

1. Value - a low cost.

2. Value - the quality that I get for a price.

3. Value - it meets my requirements for goods or services.

4. Value - this is what I get in the end, for a fee.

Based on the established price, it is possible to calculate the volume of sales by means of market research.Thus, it is possible to determine the price level that will allow us to obtain a desired gain and develop further.