The company's pricing policy. Pricing strategy Ensuring pricing policy

INTRODUCTION

Price is one of the most important indicators for a company. Price is the monetary expression of the value of a product. Its main function is to provide revenue from the sale of goods. She has great importance for consumers of goods, is very important for establishing relations between the enterprise and product markets.

Historically, price has always been the main factor determining buyer choice. This is still true in poor countries among disadvantaged groups for products such as consumer goods. However, in recent decades, price factors, such as sales promotion and the organization of distribution of goods and services to customers, have begun to have a relatively stronger impact on consumer choice.

Firms approach pricing problems in different ways. In small firms, prices are often set by senior management. IN large companies Pricing issues are usually dealt with by branch managers and product line managers. But here, too, top management determines the general guidelines and goals of the pricing policy and often approves the prices proposed by lower echelon managers. In industries where pricing factors play a decisive role (aerospace, railways, oil companies), firms often establish pricing departments that either develop prices themselves or help other departments do this.

Purpose of the study: to identify pricing features using the example of a public organization enterprise « M.video management.”

To achieve this goal, it is necessary to solve the following tasks:

Reveal the essence of pricing;

Consider the main pricing strategies;

Conduct an analysis of the price formation process at the enterprise;

Object of study: OO « M.video management.”

Subject of research: price formation.

The first chapter, “Formation of prices for enterprise products,” examines the concept and types of prices, pricing policies and pricing strategies, as well as pricing methods. The second chapter, “Formation of enterprise prices using the example of OO “M.video-management,” includes the development of pricing goals, analysis of pricing factors, and calculation of the selling price for SONY MDR headphones.

Chapter 1. Formation of prices for enterprise products

Price and its types

Price – monetary value cost of goods.

It performs various functions:

· accounting,

· stimulating

· distribution.

In the accounting function, prices are reflected publicly necessary costs labor for the production and sale of products, costs and production results are assessed. The stimulating function is used to develop resource conservation, increase production efficiency, improve product quality, introduce new technologies, etc. The distribution function involves taking into account in the price the excise tax on certain groups and types of goods, value added tax and other forms of centralized net income received by the budget of the state, region, etc.

Prices can be classified according to different economic criteria.

Classification of prices by degree of regulation

In market relations, one of the important classification characteristics of prices is the degree of their freedom from the regulatory influence of the state. A significant part of prices is free, determined on the market under the influence of supply and demand, regardless of any government influence.

Regulated prices are also formed under the influence of supply and demand, but may experience some influence from the state. The government can influence prices by directly limiting their growth or reduction. The state, represented by government and administrative bodies, can set fixed prices for certain types of goods and products. In a market economy, there are mainly two types of prices: free and regulated.

The most consistent with the nature of market relations are free prices, however, it is impossible to completely switch to them alone. The state, if necessary, can intervene in the pricing processes and, depending on changing economic conditions, move to regulated or even fixed prices.

Decisions of the Government of the Russian Federation, for example, stipulate that the range of goods sold at free prices can expand or, conversely, narrow at certain species regulated prices may be introduced for goods and services. In some regions, price regulation may depend on the local availability of commodity resources and financial capabilities. Moreover, the policy social protection population at certain stages of development requires direct government regulation retail prices for individual consumer goods that determine the subsistence level of the population (bread and bakery products, milk and dairy products, sugar, vegetable oil and so on.).

Classification of prices according to the nature of the serviced turnover

Based on the serviced area of ​​commodity circulation, prices are divided into the following types:

· wholesale prices for industrial products;

· prices for construction products;

· purchase price;

· tariffs for freight and passenger transport;

· retail prices;

· tariffs for paid services provided to the population;

· prices serving foreign trade turnover.

Wholesale prices for industrial products are the prices at which the products of enterprises, firms and organizations are sold and purchased, regardless of their form of ownership, in the order of wholesale turnover. This type of price is divided into wholesale enterprise prices and industrial wholesale (selling) prices.

Enterprise wholesale prices– prices of product manufacturers at which they sell manufactured products to consumers, reimbursing their production and sales costs and receiving such a profit that will allow them to continue and develop their activities.

Wholesale (selling) industry prices– prices at which enterprises and consumer organizations pay products to manufacturing enterprises or sales (wholesale) organizations. They include the wholesale price of the enterprise, supply and sales costs or wholesale organization, profit of a supply and distribution or wholesale organization, excise tax and value added tax. The costs and profits of a supply and sales or wholesale organization constitute the amount of the wholesale sales discount (markup).

Wholesale (selling) prices of industry are more closely related to wholesale trade, while the wholesale prices of the enterprise are more inclined towards production.

Purchase price– these are the prices (wholesale) at which agricultural products are sold by enterprises, farmers and the population. Usually they are negotiated prices, established by agreement of the parties.

Freight and passenger transport tariffs express fees for the movement of goods and passengers collected by transport organizations from cargo senders and the population.

Retail prices– prices at which goods are sold at retail trading network to the population, enterprises and organizations.

They include wholesale (selling) industry prices, excise tax, value added tax and trade markup, consisting of the distribution costs of trading organizations and their profits.

Other price classifications

Special types of prices directly related to trade are auction, exchange and negotiated prices.

Auction price– the price of goods sold at auction. It may differ significantly from the market price (be many times higher than it), since it reflects the unique and rare properties and characteristics of the goods, and may also depend on the skill of the person conducting the auction.

Exchange price– the price at which a wholesale transaction for the purchase and sale of goods is carried out on the exchange. It is a free price that fluctuates depending on demand, transaction volume, etc. The exchange price is quoted, i.e. its standard level is determined based on the most typical transactions. Exchange information is published in the relevant bulletins. The negotiated (contract) price is the price at which goods are sold in accordance with the concluded agreement. Contract prices may be constant throughout the duration of the contract or indexed on terms agreed upon by both parties.

When carrying out foreign economic activities of an enterprise, various foreign trade prices are used. They will be discussed in detail in a special chapter of this textbook.

Prices are classified depending on the territory of coverage. In this case, they distinguish:

· prices are uniform across the country, or zone prices;

· regional prices (zonal, local).

Unified, or zone, prices can be set only for basic types of products that are subject to government regulation. We are talking about such types of products and services as energy, electricity, rent and some others.

Regional (local) prices can be wholesale, purchasing, or retail. They are established by manufacturers, pricing bodies of regional authorities and management. These prices are based on production and sales costs, which add up to this region. Prices and tariffs for the vast majority of housing, communal and personal services provided to the population are regional.

Depending on other classification characteristics, competitive, oligopolistic and monopoly prices, demand prices and supply prices, reference, nominal and other types of prices can be distinguished.

Price policy enterprises

Pricing at an enterprise is a complex process consisting of several interrelated stages: collection and systematic analysis of market information, justification of the main goals of the enterprise's pricing policy for a certain period of time, selection of pricing methods, establishment of a specific price level and formation of a system of discounts and price premiums, adjustments to the pricing behavior of the enterprise depending on the prevailing market conditions.

Price policy is a mechanism or model for making decisions about the behavior of an enterprise in the main types of markets to achieve the goals of economic activity.

Objectives and mechanism for developing pricing policy

The enterprise independently determines the scheme for developing a pricing policy based on the goals and objectives of the company’s development, organizational structure and management methods, established traditions at the enterprise, the level of production costs and other internal factors, as well as the state and development of the business environment, i.e. external factors.

When developing a pricing policy, the following issues are usually resolved::

· in what cases it is necessary to use a pricing policy when developing;

· when it is necessary to react with the help of price to the market policy of competitors;

· what pricing policy measures should accompany the introduction of a new product to the market;

· for which products from the assortment sold need to change prices;

· in which markets it is necessary to pursue an active pricing policy and change the pricing strategy;

· how to distribute certain price changes over time;

· what pricing measures can enhance sales efficiency;

· how to take into account existing internal and external restrictions in the pricing policy entrepreneurial activity and a number of others.

The process of developing and implementing an enterprise's pricing policy can be represented schematically (Fig. 1).

Rice. 1. Stages of development and implementation of the enterprise’s pricing policy

Setting pricing policy goals

At the initial stage of developing a pricing policy, the enterprise needs to decide what specific economic goals it seeks to achieve with the help of production specific product. Typically, there are three main goals of pricing policy: ensuring sales (survival), maximizing profits, and retaining the market.

Ensuring sales (survival) – the main objective enterprises operating in conditions of fierce competition, when there are many manufacturers of similar goods on the market. The choice of this goal is possible in cases where consumer demand is price elastic, as well as in cases where the enterprise sets the goal of achieving maximum growth in sales volume and increasing total profit by slightly reducing income from each unit of goods. An enterprise may proceed from the assumption that an increase in sales volume will reduce the relative costs of production and sales, which makes it possible to increase sales of products. For this purpose, the company lowers prices - uses so-called penetration prices - specially reduced prices that help expand sales and capture a large market share.

Setting a profit maximization goal means that the company seeks to maximize current profits. It evaluates demand and costs at different price levels and selects the price that will maximize cost recovery.

The goal of maintaining the market involves maintaining the enterprise's existing position in the market or favorable conditions for its activities, which requires taking various measures to prevent a decline in sales and intensification of competition.

The above pricing policy objectives are usually long-term, intended to cover a relatively long period of time. In addition to long-term, the enterprise can also put short-term goals of pricing policy. Typically these include the following:

· stabilization of the market situation;

· reducing the impact of price changes on demand;

· maintaining existing price leadership;

· limiting potential competition;

· improving the image of an enterprise or product;

· promoting sales of those goods that occupy weak positions in the market, etc.

Patterns of demand. Studying the patterns of demand formation for a manufactured product is an important stage in the development of an enterprise's pricing policy. Demand patterns are analyzed using supply and demand curves, as well as price elasticity coefficients.

The less elastic the demand is, the higher the price the seller of the product can set. And vice versa, the more elastic the demand is, the more reason there is to use a policy of reducing prices for manufactured products, since this leads to an increase in sales volumes, and consequently, the income of the enterprise.

Prices calculated taking into account the price elasticity of demand can be considered as an upper bound on price.

To assess the sensitivity of consumers to prices, other methods are used to determine the psychological, aesthetic and other preferences of buyers that influence the formation of demand for a particular product.

Cost Estimation. To implement a well-thought-out pricing policy, it is necessary to analyze the level and structure of costs, estimate the average costs per unit of production, compare them with the planned production volume and existing prices on the market. If there are several competing enterprises in the market, then it is necessary to compare the enterprise's costs with the costs of its main competitors. Production costs form the lower limit of price. They determine the capabilities of the enterprise in the field of price changes in competition. The price cannot fall below a certain limit that reflects production costs and an acceptable level of profit for the enterprise, otherwise production is economically unprofitable.

Analysis of prices and products of competitors. The difference between the upper limit of price, determined by effective demand, and the lower limit, formed by costs, is sometimes called the entrepreneur's playing field for setting prices. It is in this interval that the specific price for a particular product produced by the enterprise is usually set.

The price level set must be comparable to the prices and quality of similar or similar goods.

By studying competitors' products, their price catalogs, and interviewing customers, an enterprise must objectively assess its position in the market and, on this basis, adjust product prices. Prices may be higher than those of competitors if the product produced is superior to them in terms of quality characteristics, and vice versa, if the consumer properties of the product are inferior to the corresponding characteristics of competitors' products, then prices should be lower. If the product offered by an enterprise is similar to the products of its main competitors, then its price will be close to the prices of competitors' products.

Enterprise pricing strategy

The enterprise develops a pricing strategy based on the characteristics of the product, the possibility of changing prices and production conditions (costs), the market situation, and the relationship between supply and demand.

An enterprise can choose a passive pricing strategy, following the “price leader” or the bulk of producers in the market, or try to implement an active pricing strategy that primarily takes into account its own interests. The choice of pricing strategy, in addition, largely depends on whether the company is offering a new, modified or traditional product on the market.

When releasing a new product, an enterprise usually chooses one of the following pricing strategies.

“Skimming” strategy. Its essence lies in the fact that from the very beginning of the appearance of a new product on the market, the highest possible price is set for it based on the consumer who is ready to buy the product at that price. Price reductions take place after the first wave of demand subsides. This allows you to expand the sales area and attract new customers.

This pricing strategy has a number of advantages:

· a high price makes it easy to correct an error in price, since buyers are more favorable to a price reduction than to an increase;

· a high price ensures a fairly large profit margin at relatively high costs in the first period of product release;

· an increased price allows you to restrain consumer demand, which makes some sense, since at a lower price the enterprise would not be able to fully satisfy the needs of the market due to the limited production capabilities;

· a high initial price helps create an image of a quality product among buyers, which can facilitate its sale in the future when the price decreases;

· an increased price helps to increase demand in the case of a prestigious product.

The main disadvantage of this pricing strategy is that a high price attracts competitors - potential manufacturers of similar goods. The skimming strategy is most effective when competition is somewhat limited. A condition for success is also the presence of sufficient demand.

Market penetration (implementation) strategy. To attract the maximum number of buyers, the company sets a significantly lower price than market prices for similar products from competitors. This gives him the opportunity to attract the maximum number of buyers and helps him conquer the market. However, this strategy is used only in the case where large production volumes make it possible to compensate for its losses on an individual product with the total amount of profit. The implementation of such a strategy requires large material costs, which small and medium-sized firms cannot afford, since they do not have the ability to quickly expand production. The strategy is effective when demand is elastic, as well as when an increase in production volumes ensures a reduction in costs.

The psychological price strategy is based on setting a price that takes into account the psychology of buyers and the characteristics of their price perception. Typically the price is set at just below a round sum, giving the buyer the impression of a very precise determination of production costs and the impossibility of deception, a lower price, a concession to the buyer and a win for him. The psychological point that buyers like to receive change is also taken into account. In fact, the seller wins due to an increase in the number of products sold and, accordingly, the amount of profit received.

The strategy of following the leader in an industry or market involves setting the price of a product based on the price offered by the main competitor, usually the leading firm in the industry, the enterprise that dominates the market.

A neutral pricing strategy is based on the fact that the price for a new product is determined based on the actual costs of its production, including the average rate of profit in the market or industry using the formula:

C = C + A + P (C + A),

price products market

where C – production costs; A – administrative and sales expenses; P is the average rate of profit in the market or industry.

The prestige pricing strategy is based on setting high prices for products that are very High Quality with unique properties.

The choice of one of the listed strategies is carried out by the management of the enterprise depending on the target number of factors:

· speed of introduction of a new product to the market;

· share of the sales market controlled by this company;

· the nature of the product being sold (degree of novelty, interchangeability with other products, etc.);

· payback period capital investments;

· specific market conditions (degree of monopolization, price elasticity of demand, range of consumers);

the position of the company in the relevant industry (financial situation, connections with other manufacturers, etc.).

Pricing strategies for goods sold on the market relatively long time, can also target different types of prices.

The sliding price strategy assumes that the price is set almost directly depending on the relationship between supply and demand and gradually decreases as the market becomes saturated (especially the wholesale price, but the retail price can be relatively stable). This approach to setting prices is most often used for consumer goods. In this case, prices and production volumes of goods closely interact: the larger the production volume, the more opportunities the enterprise (firm) has to reduce production costs and, ultimately, prices. The given pricing strategy requires:

· prevent a competitor from entering the market;

· constantly care about improving product quality;

· reduce production costs.

Long-term prices are set for consumer goods. It operates, as a rule, for a long time and is weakly subject to change.

Prices in the consumer segment of the market are set for the same types of goods and services that are sold to different social groups population with different income levels. Such prices can, for example, be set for various modifications of passenger cars, for air tickets, etc. It is important to ensure the correct price ratio for various products and services, which is a certain difficulty.

A flexible pricing strategy is based on prices that quickly respond to changes in supply and demand in the market. In particular, if there are strong fluctuations in supply and demand in relatively short time, then the use of this type of price is justified, for example, when selling some food products (fresh fish, flowers, etc.). The use of such a price is effective when there are a small number of levels of management hierarchy in an enterprise, when the rights to make decisions on prices are delegated to the lowest level of management.

The preferential price strategy involves a certain reduction in the price of goods by an enterprise that occupies a dominant position (market share 70–80%) and can provide a significant reduction in production costs by increasing production volumes and saving on costs of selling goods. The main task of the enterprise is to prevent new competitors from entering the market, to force them to pay too high a price for the right to enter the market, which not every competitor can afford.

The strategy for setting prices for discontinued products, the production of which has been discontinued, does not involve selling at reduced prices, but targeting a strictly defined circle of consumers who need these particular goods. In this case, prices are higher than for regular goods. For example, in the production of spare parts for cars and trucks of a wide variety of makes and models (including discontinued ones).

There are certain features of setting prices serving foreign trade turnover. Foreign trade prices are determined, as a rule, on the basis of prices on the main world commodity markets. For exported goods within the country, special prices are set for export. For example, until recently, for mechanical engineering products exported, premiums were applied to wholesale prices for export and tropical versions. For some types of scarce products, when exported, customs duties are added to prices. In many cases, free retail prices are set for imported consumer goods based on the relationship between supply and demand.

Selecting a Pricing Method

Having an idea of ​​the patterns of formation of demand for a product, the general situation in the industry, prices and costs of competitors, having determined its own pricing strategy, the enterprise can proceed to the choice specific method pricing for manufactured goods.

Obviously, a correctly set price must fully compensate for all costs of production, distribution and marketing of goods, and also ensure a certain rate of profit. There are three possible pricing methods: setting a minimum price level determined by costs; establishing a maximum price level generated by demand, and, finally, establishing an optimal price level. Let's consider the most commonly used pricing methods: “average costs plus profit”; ensuring break-even and target profit; setting prices based on the perceived value of the product; setting prices at current prices; "sealed envelope" method; pricing based on closed bidding. Each of these methods has its own characteristics, advantages and limitations that must be kept in mind when developing prices.

The simplest method is considered to be “average costs plus profit,” which involves adding a markup to the cost of goods. The amount of the markup can be standard for each type of product or differentiated depending on the type of product, unit cost, sales volume, etc.

There are two methods for calculating markups: based on cost or selling price:

The manufacturing company itself must decide which formula it will use. The disadvantage of the method is that the use of a standard markup does not allow taking into account the characteristics of consumer demand and competition in each specific case, and, consequently, determining the optimal price.

Yet the markup-based calculation method remains popular for a number of reasons. First, sellers know more about costs than about demand. By tying price to costs, the seller simplifies the pricing problem for himself. He does not have to frequently adjust prices based on fluctuations in demand. Secondly, it is recognized that this is the fairest method in relation to both buyers and sellers. Thirdly, the method reduces price competition, since all firms in the industry calculate prices using the same average cost plus profit principle, so their prices are very close to each other.

Another cost-based pricing method aims to achieve a target profit (break-even method). This method makes it possible to compare the amount of profit received at different prices, and allows a company that has already determined its profit rate to sell its product at a price that, with a certain production program, would allow it to achieve this task to the maximum extent.

In this case, the price is immediately set by the company based on the desired amount of profit. However, to recover production costs, it is necessary to sell a certain volume of products at a given price or at a higher price, but not a smaller quantity. Here, price elasticity of demand becomes especially important.

This pricing method requires the firm to consider different pricing options, their impact on the volume of sales needed to break even and achieve target profits, and analyze the likelihood of achieving all of this at each possible price of the product.

Pricing based on the “perceived value” of a product is one of the most original pricing methods, with an increasing number of firms starting to base their price calculations on the perceived value of their products. In this method, cost targets fade into the background, giving way to customers’ perception of the product. To form an idea of ​​the value of a product in the minds of consumers, sellers use non-price influence methods; provide after-sales service, special guarantees to customers, the right to use the trademark in case of resale, etc. The price in this case reinforces the perceived value of the product.

Setting prices at current prices. By setting a price taking into account the current price level, the company is mainly based on the prices of competitors and pays less attention to indicators of its own costs or demand. It can set a price above or below the price of its main competitors. This method is used as a price policy tool primarily in those markets where homogeneous goods are sold. A firm selling homogeneous products in a highly competitive market has very limited ability to influence prices. Under these conditions, on the market of homogeneous goods, such as food products, raw materials, the company does not even have to make decisions on prices; its main task is to control its own production costs.

However, firms operating in an oligopolistic market try to sell their goods at a single price, since each of them is well aware of the prices of its competitors. Smaller firms follow the leader, changing prices when the market leader changes them, rather than depending on fluctuations in demand for their goods or their own costs.

The current price level pricing method is quite popular. In cases where the elasticity of demand is difficult to measure, firms believe that the current price level represents the collective wisdom of the industry, the key to obtaining a fair rate of return. And, in addition, they feel that sticking to the current price level means maintaining a normal equilibrium within the industry.

Pricing based on the sealed envelope method is used, in particular, in cases where several firms compete with each other for a contract for machinery and equipment. This most often happens when firms participate in tenders announced by the government. A tender is a price offered by a company, the determination of which is based primarily on the prices that competitors can set, and not on the level of its own costs or the amount of demand for the product. The goal is to win the contract, so the firm tries to set its price below that of its competitors. In cases where the firm is unable to foresee the price actions of competitors, it proceeds from information about their production costs. However, as a result of information received about the possible actions of competitors, the company sometimes offers a price below the cost of its products in order to ensure full production capacity.

Pricing based on sealed bidding is used when firms compete for contracts during bidding. At its core, this pricing method is almost no different from the method discussed above. However, the price established on the basis of closed bidding cannot be lower than cost. The goal here is to win the auction. The higher the price, the lower the likelihood of receiving an order.

Having chosen the most suitable option from the methods listed above, the company can begin to calculate the final price. In this case, it is necessary to take into account the buyer’s psychological perception of the price of the company’s product. Practice shows that for many consumers the only information about the quality of a product is contained in the price and, in fact, the price acts as an indicator of quality. There are many cases where, with rising prices, the volume of sales, and, consequently, production increases.

Price modifications

An enterprise usually develops not just one price, but a system of price modifications depending on various market conditions. This pricing system takes into account the peculiarities of the quality characteristics of the product, product modifications and differences in the assortment, as well as external factors sales, such as geographical differences in costs and demand, intensity of demand in certain market segments, seasonality, etc. Various types of price modification are used: a system of discounts and surcharges, price discrimination, stepwise price reductions for the offered range of products, etc.

Price modification through a system of discounts is used to stimulate buyer actions, for example, purchasing larger quantities, concluding contracts during a period of sales decline, etc. In this case, different discount systems are used: discount, wholesale, functional, seasonal, etc.

Skonto– these are discounts or reductions in the price of goods that encourage payment for goods in cash, in the form of an advance or prepayment, or before the due date.

Functional or trade discounts are provided to those companies or agents that are part of the sales network of the manufacturing enterprise, provide storage, accounting for commodity flows and sales of products. Typically, equal discounts are used for all agents and companies with which the company cooperates on an ongoing basis.

Seasonal discounts are used to stimulate sales during the off-season, i.e. when the underlying demand for a product falls. In order to maintain production at a stable level, the manufacturing enterprise may provide post-season or pre-season discounts.

Modification of prices to stimulate sales depends on the goals of the company, the characteristics of the product and other factors. For example, special prices may be set during any events, for example, seasonal sales, where prices for all seasonal goods are reduced, exhibitions or presentations, when prices may be higher than usual, etc. To stimulate sales, bonuses or compensation can be used for a consumer who purchased a product at a retail outlet and sent the corresponding coupon to the manufacturing company; special interest rates when selling goods on credit; warranty terms and maintenance agreements, etc.

The modification of prices on a geographical basis is associated with the transportation of products, regional characteristics of supply and demand, the level of income of the population and other factors. Accordingly, uniform or zonal prices may be applied; taking into account the costs of delivery and cargo insurance, based on the practice of foreign economic activity, the FOB price, or franking system (ex-supplier warehouse, ex-wagon, ex-border, etc.), is used.

It is customary to talk about price discrimination when a company offers the same products or services at two or more different prices. Price discrimination manifests itself in various forms depending on the consumer segment, the form of the product and its application, the image of the enterprise, the time of sale, etc.

A stepwise reduction in prices for the offered range of goods is used in the case when an enterprise produces not individual products, but entire series or lines. The enterprise determines which price levels need to be introduced for each individual product modification. In addition to differences in costs, it is necessary to take into account the prices of competitors' products, as well as purchasing power and price elasticity of demand.

Price modification is possible only within the upper and lower limits of the established price.

Thus, the first chapter examines the concept and types of prices, pricing policies and pricing strategies, as well as pricing methods.

For any organization, the question of prices is a question of its existence, well-being and a decisive means for achieving the goals set for its business. Regardless of the strength of an organization's position in the market, it cannot set prices without analyzing the possible consequences of such a decision. Price is the main element of competition policy and has a huge impact on the market position and income of the organization. Thus, for successful business activities in a market economy, an organization needs a well-developed pricing policy. Setting prices for products (goods, works and services) of an organization is largely an art, since a low price may cause buyers to associate it with the low quality of the product offered, while a high price may exclude the possibility of purchasing of this product by many buyers. In these conditions, it is necessary to correctly formulate the organization’s pricing policy.

Pricing policy of the organization - this is the activity of its management to establish, maintain and change prices for manufactured products (goods, works and services), carried out within the framework of the overall strategy of the organization.

The sequence of developing the organization's pricing policy:

• 1. Determination of the main goals of pricing.
• 2. Analysis of pricing factors - demand, supply, competitors’ prices, etc.
• 3. Selecting a pricing method.
• 4. Formation of price levels and a system of discounts and price surcharges.
• 5. Adjustment of the organization’s pricing policy depending on the prevailing market conditions.

The following are distinguished: main goals of pricing policy organizations that are presented 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, production level and other factors internal environment, as well as factors external environment organizations - market type, distribution channels, government policy, etc.

Mechanism for developing and implementing pricing policy:

• 1- th stage. Determining pricing goals based on an analysis of the organization’s state of affairs on the product 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 allow determining the maximum possible prices.
• 3- th stage. Assessment of production costs, their changes based on production volume, which will allow us to determine the minimum possible prices.
• 4- th stage. Analysis of competitors' prices for similar products (goods, works and services).
• 5- th stage. Selecting a pricing method on the basis of which the initial - possible (pre-market) price will be established. 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 factors and methods that are advisable to adhere to when setting market prices for specific types of products (goods, works and services), aimed at achieving maximum profit for the organization.

The pricing strategy is developed based on the characteristics of the products offered (goods, works and services), the possibilities of changing prices and production conditions, as well as the market situation and the relationship between supply and demand.

Factors determining the choice of pricing strategy:

• - speed of introduction of a new product to the market;
• - market share;
• - the degree of novelty of the product being sold;
• - payback period for capital investments;
• - degree of monopolization, price elasticity, etc.;
• - financial position of the organization;
• - connections with other manufacturers in the industry, etc.

Main types of pricing strategies:

• - High Price Strategy (skimming strategy) - applied from the very beginning of the appearance of a new product on the market. The highest possible price is set for it, designed for the consumer who is ready to buy the product at that price. This strategy ensures a fairly large profit margin, allows you to restrain consumer demand, helps create an image of a quality product among buyers, and is effective only if competition is somewhat limited. The condition for success is the presence of sufficient demand.
• - Mid-price strategy (neutral pricing)- pricing for new products is determined based on actual production costs, including the average rate of profit on the market.
• - Low chain strategy (price breakthrough strategy, market introduction strategy) - used to attract the maximum possible number of buyers - the organization sets a significantly lower price than for similar competitors' products. This strategy is used only when large production volumes make it possible to compensate with the total amount of profit for its losses on an individual product, and is effective when demand is elastic, if an increase in production volumes ensures a reduction in costs.
• - Target price strategy. There are a number of strategies used here. Psychological price strategy - the price is determined at just below a round sum, while the buyer gets the impression of a very accurate determination of production costs and the impossibility of deception. Strategy for setting a prestigious price - based on setting high prices for very high quality goods. Long term price- installed on consumer goods, lasts for a long time and is weakly subject to change.
• - Flexible price strategy - based on prices that quickly respond 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 directly depending on the relationship between supply and demand and gradually decreases as the market becomes saturated. It is most often used 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 presence of sufficient demand.

Pricing policy is the actions of not only pricing entities, but also state authorities and local governments, which are aimed at implementing price regulation in all areas of activity. There are methods of direct and indirect government price regulation.

Methods of direct price regulation by the state:

• - administrative price setting;
• - “freezing” prices;
• - setting a price limit;
• - regulation of the level of profitability;
• - establishing 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 government spending;
• - establishing depreciation standards, etc.

With direct price regulation methods, the state directly influences prices by regulating their level, establishing profitability standards or standards for the elements that make up the price, or other similar methods. With methods of indirect price regulation, the state sets discount rates for interest, taxes, income, and the level of the minimum wages, depreciation rates, etc.

Price policy — An extremely important tool for a manufacturing company, however, its use is fraught with risk, since if handled ineptly, the most unpredictable and negative results in terms of their economic consequences can be obtained. And it is absolutely unacceptable for a company to have no pricing policy as such.

To differentiate these factors in the process of determining a new pricing policy, one should rely on clearly formulated main company-wide and marketing goals for one or another fairly long period. In other words, when developing and implementing a new pricing policy, one should be based on the strategic guidelines of the company and the tasks determined by them. Figure 13.1 shows a relatively broad set of pricing policy objectives. Of course, it does not at all follow from it that a company, even a very large one, strives to achieve all of the listed goals (the number of which, by the way, can be significantly expanded): firstly, simultaneous work to achieve them is ineffective due to the dispersal of forces and means; secondly, there are mutually exclusive goals - for example, obtaining maximum profit during the period of large-scale development of new markets, which requires large expenditures of funds.

Figure 13.1 - Main goals of pricing policy

The nature of the company’s goals and objectives is reflected in the features of the pricing policy: the larger, more diverse and difficult to achieve the general company goals, strategic objectives and objectives in the field of marketing, the more complex the goals and objectives of the pricing policy, which, in addition, depends on size of the company, product differentiation policy, industry of the company.

Let us list several aspects of pricing policy formation:

· determining the place of price among other factors of market competition;

· application of methods to help optimize estimated prices;

· choice of a leadership strategy or a strategy of following the leader when setting prices;

· determining the nature of the pricing policy for new products;

· formation of a pricing policy that takes into account the phases of the life cycle;

· use of base prices when working in different markets and segments;

· taking into account the results in the pricing policy, comparative analysis ratios of “costs/profits” and “costs/quality” for one’s own company and competing companies.

Pricing policy presupposes the need for a company to establish an initial (base) price for its goods, which it reasonably varies when working with intermediaries and buyers.

The general scheme for determining such a price is as follows:

1) formulation of pricing objectives;

2) determination of demand;

3) cost estimation;

4) analysis of prices and products of competitors;

5) choice of pricing methods;

6) installation base price.

Subsequently, when working in markets with different and changing conditions, a system of price modifications is developed.

Price modification system:

1. Price modifications based on geography take into account the requirements of consumers of individual regions of the country, occupying large territories, or individual countries in whose markets the company operates.

In this case, five main geographic strategy options are used:

- strategy 1: manufacturer's selling price at the place of production (ex-factory). Transportation costs are borne by the buyer (customer). The disadvantages and advantages of such a strategy for the seller and buyer are obvious;

- strategy 2: single price. The manufacturer sets a single price for all consumers, regardless of their location. This pricing strategy is the opposite of the previous one. In this case, consumers located in the most remote areas benefit in price;

- strategy 3: zonal prices. This pricing strategy occupies an intermediate position between the first two. The market is divided into zones, and consumers within each zone pay the same price. The disadvantage of the strategy is that in territories located near the conventional boundaries of zone division, prices for goods differ significantly;

- strategy 4: accrual to all buyers, regardless of the actual place of dispatch of the goods, of additional freight costs to the starting price, accrued from the selected basis point to the buyer’s location. In the process of implementing this strategy, the manufacturer may consider several cities as a base point (freight basis);

- strategy 5: payment of freight costs (part of them) at the expense of the manufacturer. It is used as a method of competition to enter new markets or maintain its position in the market when competition intensifies. By fully or partially paying for the delivery of goods to their destination, the manufacturer creates additional advantages for himself and thereby strengthens his position in comparison with competitors.

2. Price modifications through a discount system in the form of discounts (discount for payment in cash or before the deadline), wholesale discounts (price reduction when purchasing a large quantity of goods), functional discounts (trade discounts provided to intermediary companies and agents included in the manufacturer’s sales network), seasonal discounts(offering post- or pre-season discounts), other discounts (offsetting the price of similar old goods handed over by the buyer; discounts on the occasion of a holiday, etc.).

3. Modification of prices to stimulate sales carried out in a variety of forms: bait price (sharp temporary reduction in prices in retail trade for well-known brands); prices set for the duration of special events (valid only during certain events or when using special forms of offering goods - seasonal or other sales); premiums (cash payments to the final buyer who purchased the product in retail and presented the manufacturer with a coupon); favorable interest rates when selling on credit (a form of sales promotion without price reduction; widely used in the automotive industry); warranty terms and maintenance agreements (may be included in the price by the manufacturer; services are provided free of charge or on preferential terms); psychological price modification (the possibility of offering your own similar product at a lower price, for example, the price tag may indicate: “Price reduction from 500 thousand to 400 thousand rubles”).

4. Price discrimination occurs when a manufacturer offers identical products at different prices. The main forms of discrimination, which are often integral part pricing policy are: modification of prices depending on the consumer segment (the same product is offered different categories consumers at different prices); modification of prices depending on the form of the product and differences in its use (with small differences in the forms of production and use, the price can be significantly differentiated, and with constant production costs); modification of prices depending on the image of the company and its specific product; differentiation of prices depending on location (for example, selling the same product in the city center, on its outskirts, in rural areas); modification of prices depending on time (for example, telephone tariffs may depend on the time of day and days of the week).

However, price discrimination is justified if the following conditions: its compliance with laws, inconspicuous implementation, a clear division of the market into segments, exclusion or reduction to a minimum of the possibility of resale of “discriminated” goods, not exceeding the costs of segmentation and market control of additional revenues from price discrimination.

The pricing policy of the producer company, stated in a concise form, mainly reflects global practice. However, as market relations develop in Russia domestic producers are beginning to develop and use a thoughtful pricing policy that takes into account the specifics of local conditions.

The main material goal of European business, embodied in its pricing policy, is making a profit. Other goals (maximum possible turnover, maximum possible sales) are of subordinate importance. The predominance of one or another material goal depends significantly on the size of the company. Thus, approximately 55% of small firms named “profits commensurate with costs” and “profits characteristic of the entire industry” as their goals, while large firms named “maximum profits.” Responses varied significantly across industries. For example, the goal of “profit commensurate with costs” was most often mentioned in the textile and clothing industry, the market of which had already passed the stage of maturity, and the desire for “maximum profit” was characteristic of representatives of the fields of electronics, electrical engineering and precision mechanics, the market of which is at the stage of dynamic development.

Two-thirds of the surveyed firms stated their desire to expand market share in the profile of their main products - moreover, they consider achieving this goal to be realistically achievable; 3/4 of surveyed firms from industries whose markets are in a growth stage would like to increase their market share. In weaker industries, more than half of the surveyed firms would only like to maintain their achieved market share. In addition, according to the survey, large firms with strong market positions (80% of firms) seek to further strengthen them - among small businesses this share is 60%

Decisions to introduce a new product also depend on the size of the firms. Small firms usually decide to develop a new product only if they have a specific order for it. Large firms, having significant financial reserves and the ability to maneuver, make appropriate decisions after carrying out large-scale marketing research and market experiments.

5. PRICING POLICY

Price policy- this is the management of the enterprise’s activities in establishing, maintaining and changing prices for manufactured products, carried out in line with the marketing concept and aimed at achieving its goals.

The type of market in which it operates has a significant impact on the formation of an enterprise's pricing policy. The basis for determining the type of market is the number of firms operating in the market. The analysis parameters also include: the type of product (the degree of its homogeneity and standardization), price control, conditions for entry into the industry, the presence of non-price competition, and the importance of marketing.

Based on the analysis of these parameters, four main types of market are distinguished: a pure competition market, a monopolistic competition market, an oligopolistic market and a pure monopoly market (Table 26).

A purely competitive market consists of many sellers and buyers of a standardized product. There are no serious legal, organizational, financial or technological restrictions for entering the industry. Since each firm produces a small portion of total output, none of them has much influence on the price level. Sellers in such markets do not spend much time developing a marketing strategy, since its role in such a market is minimal.

The number of firms operating in the monopolistic competition market is large, but much smaller than the participants in pure competition markets. As a rule, these are 20-70 enterprises. Entry into the industry is quite easy. Transactions in such a market are made in a wide range of prices. The presence of a price range is explained by the ability of manufacturers to offer customers different product options. Products may differ from each other in quality and appearance. Differences may also lie in the services accompanying the goods. Buyers see differences in supply and are willing to pay different prices for products. Control over prices is limited, since there are enough firms that the share of each in the total market is small. In such a market, the use of marketing measures is of great importance, but they have less influence on each individual firm than in an oligopolistic market.

Table 26

Characteristics of market types

An oligopolistic market consists of a small number of producers (usually 2 to 20) who are sensitive to each other's marketing strategies. The small number of sellers is explained by the fact that it is difficult for new applicants to penetrate this market due to the presence of a set of barriers: the need for large initial capital, ownership of patents, control over raw materials, etc. Products in such a market can be standardized (steel) or differentiated (automobiles). The degree of price control, exercised in various forms, is high.

In a pure monopoly, there is only one seller in the market producing a product that has no close substitutes. It may be a government entity, a private regulated monopoly, or an unregulated monopoly. A state monopoly can use price policy to achieve a variety of goals. A regulated monopoly is allowed by the state to set prices that ensure a “fair” rate of profit. An unregulated monopoly sets its own prices. Entry into a monopoly industry is blocked by various barriers.

Thus, each type of market has its own mechanisms, so the implementation of the same actions in the field of pricing policy in different markets leads to different results and has different meanings.

The method of establishing the initial price of a product consists of six stages.

1. Setting pricing objectives

Pricing objectives arise from the goals and objectives of the enterprise’s overall marketing policy. The main goals are presented in table. 27.

Table 27

Pricing policy goals

2. Determining the level of demand

Demand depends on price, and the degree of this dependence is determined by elasticity. Elasticity of demand– a quantitative characteristic of demand, reflecting a change in the quantity of demand in response to a change in the price of a product or some other parameter. The following types of elasticity of demand are distinguished:

direct price elasticity of demand;

income elasticity of demand;

cross price elasticity of demand.

3. Cost Estimation

The level of costs for the production and sale of goods allows us to determine the minimum price that the company must set to cover them.

4. Analysis of prices and products of competitors

The firm's price setting is influenced by the prices of its competitors' products. Focusing on a comparative analysis of the quality of competitors' products and their prices, the company has the opportunity to determine the average price range for its products.

5. Selecting a Pricing Method

The most common pricing methods are: cost plus markup, break-even analysis and target profit, pricing based on the perceived value of the product, pricing based on the level of competition, aggregate and parametric methods.

The “cost plus markup” method is the simplest method of pricing; it involves adding a certain markup to the full cost of the product. The prevalence of this method, in addition to its simplicity, is also determined by the fact that manufacturers are more aware of costs rather than demand. This method is considered fair; if all sellers use it, then prices for similar products are similar.

At the same time, the “cost plus profit” method also has significant disadvantages: it is not related to current demand and does not take into account the consumer properties of goods. In addition, total costs include fixed costs not associated with the production of a specific product; the methods of their distribution among products are conditional and can lead to price distortions.

Determining the price based on break-even analysis and ensuring the target profit is based on setting a price level that will provide the company with the desired amount of profit. Determining the price using this method can be done by calculation and graphically.

The obvious advantage of this method is to provide the company with a planned amount of profit. The disadvantage is that this method does not take into account the price elasticity of demand. Its use can also lead to a distortion of the real picture due to the conditional distribution of fixed costs among individual products.

The perceived value pricing method considers the consumer's perception of the product as the main factor taken into account. To form in the minds of the consumer the desired idea of ​​​​the value of a product, non-price methods of influence are used.

Competition-based pricing (current price method) considers competitors' prices as the starting point when setting prices, while own costs and demand levels are taken into account only as additional factors. This method is especially popular in pure and oligopolistic competitive markets. In an oligopolistic market, this method is embodied in the “follow the leader” policy.

The aggregate method is used for goods consisting of individual products or assemblies (parts) and consists of simply summing the prices for individual elements of the product.

The parametric method is based on determining the price of a product based on a comparative formal analysis of the characteristics of the product in relation to the similar characteristics of the base product with a known price.

6. Setting the price

By using the selected pricing method, the initial price of the product is determined.

7. Development of dynamics of changes in the initial price of a product

The dynamics of changes in the initial price of a product depends on the chosen strategy. When changing the price of new products, two main strategies are used: “cream skimming” and “strong introduction”.

The “cream skimming” strategy consists of initially setting a high price for a new product based on narrow market segments and then gradually reducing the price to gradually cover other segments. A “robust penetration” strategy is based on using initial low prices to reach the widest market with the possibility of increasing prices later.

When developing price dynamics for existing products, two main types of strategies can be used: a rolling falling price strategy and a predominant price strategy.

The sliding falling price strategy is a logical continuation of the skimming strategy and consists in the fact that the price consistently slides along the demand curve, changing depending on the market situation. The preferential pricing strategy is a continuation of the strong implementation strategy, its essence is to achieve an advantage over competitors in terms of cost (then the price is set below the competitors' prices) or quality (then the price is set above the competitors' prices so that the product is regarded as high quality).

In addition to making strategic decisions, it is also necessary to develop pricing tactics, that is, carry out market price adjustments. Tactical decisions include decisions regarding the establishment of:

standard or flexible prices;

uniform or discriminatory prices;

psychologically attractive prices;

price discount systems.

The pricing policy of an enterprise is a multifaceted concept. An enterprise does not just set this or that price, it creates its own pricing system, covering the entire range of products, which takes into account differences in production and sales costs for certain categories of consumers and for different geographical regions, specificity in levels demand; seasonality of product consumption and many other factors. In addition, the enterprise operates in a constantly changing competitive environment.

Pricing policy of the enterprise (organization) - This is the activity of its management in establishing, maintaining and changing prices for manufactured goods, aimed at achieving the goals and objectives of the company.

Development of a pricing policy includes the following stages:

Developing pricing goals;

Analysis of pricing factors;

Choosing a pricing method;

Deciding on the price level.

Each step of setting a price comes with its own challenges, which the thoughtful entrepreneur should be aware of in advance.

The procedure for developing a pricing policy should include an analysis of factors that may influence the organization’s activities: regulatory requirements, the consequences of certain government decisions in the field of pricing, pricing policy and competitors’ strategy.

Pricing policy consists of setting prices that would satisfy not only sellers, but also end consumers of goods and services.

3.Classification and types of prices

The classification of prices according to various criteria reflects their division into separate types.

Types of prices depending on areas of trade: prices are affected by the type of trade in goods and services through which goods are sold, the scale of trade operations and the nature of the goods sold. Based on these criteria, prices are divided into wholesale, retail, purchasing and tariffs.

Wholesale they name the prices at which products are sold in large quantities, in the conditions of so-called wholesale trade. The wholesale price system is used in trade and sales operations between enterprises, as well as in the sale of products through specialized stores and wholesale sales offices, on trade exchanges and in any other trade organizations, selling goods wholesale, in significant quantities.

Typically, manufacturing enterprises sell products at wholesale prices either to each other or to resellers. Most often the need for wholesale occurs when production is localized in a limited number of points, and the sphere of consumption has a wide radius.

Retail It is customary to call the prices at which goods are sold in the so-called retail trade network, that is, in the conditions of their sale to individual buyers, with a relatively small volume of each sale. Through trade at retail prices, end consumers, households, and citizens are most often served.

The retail price is higher than the wholesale price by the amount of the trade markup, which compensates for distribution costs in retail trade and creates profit for organizations and retail establishments.

Purchasing prices are the prices of government purchases of products from enterprises, organizations, and the population.

Prices for services that represent, as already mentioned, types of activities in which the product is not created in its material form, but the quality of the existing product changes, have a certain specificity. Most often, the production of a service coincides with the beginning of its consumption. The specificity of services as a type of activity leaves an imprint on the formation of prices for services, called tariffs (prices) . When setting tariffs for services, not only the volume of work is taken into account, but also the time factor; quality plays a significant role. Typical examples of tariffs are the level of payment for utilities and household services, telephone fees, and for the use of radio and television.

According to the degree and method of regulation, prices are divided into the following groups:

Rigidly fixed, solid prices are set by pricing authorities or other government bodies, and their level is documented. Neither manufacturers nor sellers of goods have the right to change the value of such a price in any direction; such a change is punishable by law. In a centrally controlled economy, set prices are widespread and are known as government prices. State pricing authorities have a monopoly right to set and change state prices, increase or decrease them. The government pricing system was widely used in the Soviet Union. Such pricing is usually based on the cost principle, that is, the price is calculated as the sum of the costs of production and circulation of a unit of product, to which the standard profit is added or from which the state price subsidy is subtracted.

Adjustable prices are called so because their values ​​are regulated by government agencies. When regulated, the government's influence on prices is limited, indirect, and is carried out through influencing changes in the demand and supply of goods. Sometimes regulation comes down to limiting prices for certain groups of goods with an upper limit in order to expand the purchasing power of consumers or a lower limit in order to stimulate production development.

Price regulation by value can also be carried out through approval by government agencies limit level profitability (profitability), which is more consistent with the trends in influencing prices in a centralized economy. Negotiated prices are prices whose value is determined by a preliminary act of purchase and sale by agreement, documented by a contract between sellers and buyers. In modern business cooperation practice, it is customary to include a special section in contracts that stipulates the price level. In a number of cases, the contract does not stipulate absolute value prices, but the range of prices (ranging from and to), the upper or lower level (not higher or lower) or their relationship with state, market, world prices. It also stipulates the permissibility of changing the prices fixed by the contract due to, say, inflation, the occurrence of force majeure, or the adoption of new laws.

Free market prices, as their name implies, are freed from direct price intervention by government bodies, are formed under the influence of market conditions, the laws of supply and demand and are called equilibrium prices, that is, prices at which the volume of demand is equal to the volume of supply of goods on the market. Theoretically, market prices should ideally be determined through a process of free bargaining between buyers and sellers. However, it is really impossible to avoid the impact on the process of setting market prices of a number of factors, not only of an economic, but also of a psychological nature, related to the behavior and interests of buyers and sellers. In this sense, it is correct to define free market or equilibrium prices as a price equal to With on the one hand, the value for consumers of an additional unit of the purchased good and, on the other hand, the costs of production and sale of an additional unit of this good for the seller. The transition from fixed government prices to free market prices is called price liberalization .

In economic analysis, planning and statistics, along with current, existing ones, they are actually used comparable or, as they are sometimes called, unchanging prices. The use of such prices is objectively necessary due to the natural changes in many prices and inflation processes. For the same purposes, they are sometimes used real prices, which represent the price in monetary terms relative to the general price level. When making consumer decisions, the buyer is interested in relative (comparable) prices, that is, the price of a given product compared to the price of some other related product or the same product in another region. For this purpose, a price ratio is established. Most often, the ratio of prices of interchangeable goods, called substitutes, is determined.

In the process of designing new types of products and objects for the production of newly developed products, goods, services, materials, semi-finished products, energy are used design prices . Taking into account their approximate, indicative nature, the maximum level of such new prices is often determined in the form limit prices

In relation to construction industry objects, at the stage of their design, the price of construction of the object is determined, taking into account all types of costs for creation and equipment. This price is usually called estimated cost , since it is calculated on the basis of estimates, which sum up the costs of creating a finished construction project.

In a broader sense, all types of prices determined through calculations are called calculated , and prices expected in the future - expected .