Pricing in Trade

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As a kind of business is the sale of merchanting.Trade organizations, not being producers of goods, act intermediary between manufacturers and potential and actual customers.

This pricing in trade pushed mainly by the principle of profit.Since the main source of profit is well-formed price, it is in trade and plays a most important role in the whole process of economic activities.

why pricing in the trade is one of the priority activities of specialists, whose competence is the sphere of interests of the company and its strategic development.

Pricing in trade based on concepts such as the structure, the composition of the price, the prices for similar goods price index, costs, competitors' prices, profit margins and others.

pricing mechanism provides a variety of patterns, methods of pricing and pricing principles (justification, the unity price, continuity, control, focus).

for setting prices on goods trade organization must take into account a whole range of factors that can affect the price and the level.

The mechanism of pricing on the principles and methods by which prices are formed.They are mediated by the price policy peculiar to a particular company, which is reflected in the price control methods and psychological techniques for creating adequate price indicators.

to the methods of control of prices include discounts, bonuses, savings systems, promotions, gifts, discount cards, etc.Psychological methods are based on the properties of human nature and the knowledge that people often tend to make irrational purchases.

Pricing in trade mediated by a number of factors.First of all, it depends on the company occupied market niche.This could be a niche market of perfect competition or the so-called monopoly market.In the first case, the sellers do not affect the price, so you need to trade the company set the price, roughly equal rates of competitors.At the same monopolistic market price determined almost entirely by the company-monopolist.

In addition, it is very important in the formation of prices to take into account the general market conditions and all its inherent temporal variations.In a situation of stable demand in the market can be successfully used passive pricing mechanism.The essence of it is reduced to the strict adherence to the cost method of price formation without consumer preferences and changes in the market.In a situation of growing markets must take into account the mood of consumers.In these circumstances, you need to refer to the active pricing, adjusting to customers and responding flexibly to market changes.Such an arrangement is peculiar exchange trading and similar areas that are prone to living changes in market conditions.

on pricing also affects the stage of the life cycle of goods sold.For new products set prices intelligence nature.A more stable demand, respectively, the price reaches a higher level.And in terms of saturation of the market price falls to lower.

Stages pricing include several positions.The first is the choice of the objectives of pricing policy (ensuring survival, holding the market or profit maximization).Then analyzes the level of demand for goods.Only then can you move on to the account and the analysis of its own costs and study competitors' prices.The next step is the selection of pricing method, pricing and the transition to the appointment of the best prices of the goods sold.