Pricing is a process of formationcost of services or goods, which is primarily characterized by ways and methods of setting prices in relation to all goods. Depending on the method chosen, the development and achievement of the company's goals is determined. A comprehensive analysis of how various factors affect the range of the cost of a product or service, as well as the choice of the method that generates pricing, ensures profit growth.
Currently, the most common methods are:
1.Cost-based pricing is when the actual costs (in other words, costs) for organizing the production of goods (services), implementation and further support are taken as the starting point. This method is the most common.
2. Competitive pricing is the use of tactics and value strategies of the most successful competitors.
3. The method of orientation to demand. In this case, pricing is a comprehensive analysis and subsequent pricing, taking into account the optimal ratio "price / cost."
Now let's take a closer look at the tasks.pricing. As stated above, the cost method is most common in most commercial structures. It focuses on modern legislation and economics. Pricing is formed taking into account all costs. Such prices are set for services that would ensure cost recovery and a stable level of profitability. The main advantage of this method is simplicity and guaranteed level of income.
Pricing method when in qualitythe starting point is taken the price of competitors for a similar product or service. Having learned the prices, the company makes a decision at what level to keep the cost of production. This method makes it possible to get away from price competition. However, there are negative points. Different companies have costs that are completely unequal. In other words, some can afford to keep low prices and still be in profit, while others, without reducing the cost part, will sooner or later be bankrupt.
Demand Oriented Pricing Methodquite long and expensive. It is based on the perception of the value of a product or service. To use this method, it is necessary to take into account that the perception of value in different people has differences.
1. Value is low cost.
2. Value is the quality I get for a certain price.
3. Value is compliance with my requirements for a product or service.
4. Value is what I end up with for a fee.
Исходя из установленных цен, можно расчитать sales with marketing research. Thus, it is possible to determine the price level that will allow the company to obtain the desired profit and develop in the future.
