Types of prices in marketing

Price - the price for goods or services, expressed in monetary terms.It is usually defined per unit for volume production for the service.Price indirectly expresses the resources expended on the production of goods (services).These include the cost of materials used, materials, time and labor forces.The price also includes the cost of logistics, implementation, advertising, marketing.Consider the notion and types of prices used in marketing.

Price (services, goods) - the cost of which is formed by the interaction between a seller and a buyer on the market similar products (services).What kind of price in marketing there?

Contract Price - the price that is set by agreement between the parties.That is the price in this case is formed not spontaneous, it is the result of a single agreement the seller and buyer.Depends such price on the specific conditions prevailing at a given period of time.

in the "types of prices" includes the purchase price - the price of products for distributors, dealers.It is fixed in the contract of sale.

wholesale price - the price of goods to the buyer that the goods while purchasing party and implements in their original packaging.One product can be resold several times, passing through a number of wholesalers.And each of them will inflate the wholesale price, ie the purchase price will be added the trade margin.

Retail price - the price at which a seller sells goods (services) to the final buyer.He uses these products for yourself, work or family.Retail price is the sum of the previous practice of interaction between seller and buyer.This price is fixed on the price list or in the sales contract.By purchasing a product or service, the buyer agrees to the retail price.It is formed as follows: wholesale price + margin trading organizations (profit, costs for advertising, salaries of employees, storage of goods, etc.).Price list - a list of names of goods (services) and their prices, which can be found as a wholesale buyer or retailer.

Forms prices are classified by the following features:

1. At the time of action:

- constant;

- temporary:

  • prices once;

  • prices for the period of any action;

  • seasonal prices.

2. For certain categories of buyers:

- open price;

- special price:

  • for dealers;

  • for distributors;

  • for a particular segment of the market;

  • geographic markets;

  • for industrial markets;

  • special cost for regular customers.

3. Depending on the industry:

- wholesale prices;

- purchase price;

- retail prices;

- estimates for the construction of: a list of the costs of materials, wages to employees, etc.

- payment for the transportation of passengers and goods - are charged with public transport companies and freight forwarders;

- fees for various services rendered to the population - the retail price of housing and utilities, consumer services, communications and etc.

4. Depending on the formation of the following types of prices:

- fixed price - set mostly on exclusive products.That is, the state regulates the price of alcoholic products, tobacco products, bread, etc .;

- free prices - prices that are being formed under the influence of supply and demand;

- prestigious prices formed for wealthy people.The high price guarantees and excellent quality of the product;

- transfer prices established between the two companies.The basis is the market price or cost.

- export prices - the price paid on the export of certain goods abroad.These prices include:

  • duties;

  • insurance;

  • customs duties;

  • costs of loading and unloading;

  • transport costs and others.

We examined all possible types of price in marketing.