Pricing, concept, principles and methods. Centralized pricing system

Pricing- is the formation of prices for goods and services. There are two pricing systems:

  • market pricing, operating on the basis of the interaction of supply and demand,
  • centralized state pricing - formation of prices by government agencies.

At the same time, within the framework of cost pricing, production and distribution costs are used as the basis for price formation.

Pricing Methods

The following pricing options can be roughly distinguished:

  • based on full costs (“costs +”);
  • based on marginal costs (marginal costs, reduced costs, direct costs);
  • based on turnover income;
  • based on return on investment;
  • taking into account breakeven;
  • pricing based on consumer demand;
  • parametric pricing methods;
  • method of comparison of specific indicators;
  • aggregate method;
  • setting current prices;
  • method of following the competition leader;
  • tender method.

Full cost method implies that the price is based on all the costs of the enterprise for the production and sale of products (fixed and variable), the full cost of the product is calculated, and the amount of profit is added to it. Because fixed costs distributed among all types of products in proportion to any indicator, then when in different ways distribution, depending on the choice of base, the level of cost of the product also fluctuates. As a result, to the listed disadvantages of this method one more is added - the actual cost of the product is distorted, and this leads to underestimation or overestimation of the price. In fact, many commercial enterprises also use this technique. A more progressive and reasonable method is the standard (normative) total cost method.

Its essence lies in the fact that the price is based not on actual, but on standard costs and constantly takes into account the deviation of actual costs from norms. This pricing method has several advantages over simply accounting for actual costs. It makes it possible to manage costs, since they calculate not just the total amount of deviation, but in the context of each item. Also, this method

  • carries out factor analysis of cost items,
  • identifies what caused the price deviation from the standard,
  • provides the ability to continuously compare cost items with financial results, regardless of production capacity utilization.

This method guides manufacturers to reduce costs. The most difficult moment when introducing a system of normative (standard) costs is the determination of progressive and reasonable cost standards, which involves a detailed study of production methods, technical characteristics products, etc.

Marginal cost method involves taking into account in the price of products only those costs that arise when producing each additional unit of product in addition to the already mastered production. These costs are economic literature are called differently: marginal, marginal, reduced, direct, and in practice they are usually considered variable costs. The application of this method is based on the principle of marginal profit, through which fixed costs are reimbursed. The marginal cost method is more complex than the full cost method, as it is focused on a multifactor approach to pricing. If it is used, the enterprise estimates the potential sales volume at each expected price. It is used in various situations:

1. If the enterprise has free production capacity and fixed costs are already covered by the current production volume. In this case, in order to expand sales volume, the enterprise can set prices taking into account only variable costs.

2. If an enterprise needs to gain market share, and it intends to use a market penetration pricing strategy, that is, the price of its product is set lower than the price of a similar product. In this case, it is taken into account that it is impossible to use this method for a long time, since ultimately it is necessary to reimburse all costs and make a profit. The enterprise must have financial resources to maintain product prices at a given level, or this method is used only when determining prices for several types of manufactured goods. Its most effective use when making management decisions:

  • about the price of products with available free production capacity;
  • on accepting an order from the state or another enterprise with guaranteed sales;
  • produce or purchase components;
  • about the feasibility of producing a particular product with limited production capabilities.

Revenue based pricing method, also involves taking into account total costs enterprises. In addition, he must provide him with the planned (desired) amount of income from turnover. In trade, distribution costs will be offset by gross income, and this must be taken into account when determining the size of the desired level of income from turnover. The calculations made will help trading enterprises justify prices taking into account their needs. The price determined by this method serves as a guideline and allows you to compare the price level with the prices of competitors. If it is too high, then you need to look for ways to reduce costs or new supply channels with lower prices for purchasing goods in order to ensure the desired level of income.

Return on investment (return on invested capital) method, is used in pricing new products, the production and sale of which require capital investment. This method is the only one that takes into account the payment of financial resources. In trade, it is used to determine the minimum price when using a loan to purchase a batch of goods.

Carrying out calculations allows the enterprise retail compare the minimum and retail price with the level of market prices for similar goods and determine whether the products will be in demand at such a price and whether it makes sense to purchase them on such conditions. In addition, the use of this method allows you to make informed decisions about the size of production volumes or batches of goods at known market prices, because the amount of payments for using a loan per unit of product (good) depends on the scale of activity. In conditions of inflation, it is difficult to use this method due to the high level of interest rates and their uncertainty over time, as well as the difficulty of predicting the level of market prices.

Method of break-even analysis and determination of target profit, cannot be called a price determination method. Essentially, this is the calculation of various options for production volumes or trading activities allowing to achieve break-even and obtain a target (planned) profit at certain costs and different prices. The calculations are based on the idea that with the achievement of a certain scale of production and trading activities, the enterprise covers all its costs (fixed and variable) and with a further increase in volume begins to make a profit. In the economic literature, this volume of production and trading activity is called:

  • break-even point
  • profitability threshold,
  • threshold sales volume,
  • breaking point, etc.

At the break-even point, revenue from sales of products covers the costs of the enterprise. The break-even point can be determined analytically or graphically. The break-even point depends on the amount of costs (the ratio between fixed and variable) and price: the higher the price, the lower the production volume ensures break-even at constant costs. The basis of break-even analysis is the search for the most profitable combinations between variable costs per unit, fixed costs, price and production volume.

To determine prices in order to achieve break-even production, an estimated sales volume standard is used, which itself depends on the price. Break-even analysis of an organization’s activities has specifics - in trade and catering costs are covered by gross income, therefore, when calculating the break-even of trading activities, an indicator of the level of gross income is used, depending on turnover and the level of trade markup. The break-even point of a trading enterprise shows the volume of turnover at which the enterprise covers costs. The level of gross income depends on the level of the trade markup, with various options trade markup will fluctuate its size and the amount of gross income, respectively, the price and volume of turnover required to achieve break-even. Thus, using the planned data, it is possible to carry out interconnected calculations of the main indicators.

Pricing based on consumer demand. Many experts believe that demand is the only factor that should be taken into account when justifying the price. Enterprises that focus on this approach to pricing use the consumer evaluation method, which is based on the perceived importance of the product by the consumer and the willingness to pay a certain amount of money for it, i.e. consumer assessment of the product to potential buyers and their perception of price. With this approach, the enterprise proceeds from the fact that the consumer himself determines the relationship between the value of the product for him personally and its price, comparing with the prices of similar products on the market.

The usefulness of a product (a set of useful properties of systemic quality) for the consumer predetermines his willingness to pay a given price, i.e. maintain the level of effective demand. The change in price is made dependent on changes in the level of demand for the product in such a way that the price increases when demand increases and decreases when it decreases, and production (sales) costs are taken into account only as a limiting factor showing whether the product can bring profit to the enterprise at a price determined by this method profit. The use of this method is effective in the market for interchangeable goods, which allows the buyer to compare products and choose the one that best suits his desires.

The objective of the enterprise is to differentiate its products based on technical properties, design, packaging, after-sales service, etc. and attract attention potential buyers to these qualities. The use of this method requires a good knowledge of your potential client, his requests, as well as competitors' products. Product differentiation also implies market differentiation: an enterprise works with several consumer segments, each of which has different assessments of the individual consumer properties of the product, which implies a wide range of prices.

Parametric Pricing Methods are based on determining the quantitative relationship between prices and the basic consumer properties of a product included in the parametric series. A parametric series is a group of products that are homogeneous functional purpose, designs, manufacturing technologies, but have differences in consumer characteristics (for example, for refrigerators this is power, size, freezer volume, energy intensity, etc.).

These methods are used to justify prices for new products, as well as to identify the compliance of the expected price level, calculated on the basis of production costs, with prices prevailing on the market. Such pricing methods include the method of comparing specific indicators, the method of point parametric estimates, the method of correlation regression analysis, and the aggregate method.

Method of comparison of specific indicators used to calculate the price of goods whose consumer value is characterized by one main consumer parameter (power, performance, weight, service life, etc.). This method is the simplest and is applicable to such products where one or two parameters matter, and other characteristics of the product are approximately the same.

Parametric scoring method. The product that the company is going to sell on the market is evaluated according to parameters that are important to consumers (material, design, fittings, fashion, etc.), and each parameter is assigned a rank number according to importance: 1, 2, etc.

Specialists set a weight index (%) for each product depending on its significance, with the total sum of weight indices being equal to 100%, and evaluate their product and competitors’ products using a 10-point system. By multiplying the score by the weight index and dividing by 100, an estimate of each parameter is obtained; the sum of these parametric estimates gives the overall parametric score of the product. Having chosen a product of a company as a standard (a product that is best sold on the market, which indicates the consistency of price and quality) and, taking the overall score it received as 100%, the estimated percentage of other products is determined.

The essence method of "correlation regression analysis" consists in determining the dependence of price changes on changes in several basic quality parameters within the parametric series of goods. To construct functions, a parametric series is made, i.e. accumulate initial information about prices and quality characteristics (parameters) of goods. After statistical processing Using the initial data using the method of correlation regression analysis, a quantitative relationship is found between the price change and the change in parameters and a regression relationship equation is constructed. The method can be successfully used in a market economy, especially for complex products with a large parametric range, as it allows one to identify the dependence of price on many factors, i.e. take a more reasonable approach to determining its level.

Aggregate method consists of summing up the prices of individual structural parts of products included in the parametric series, adding the cost of new parts and standard profit.

Method for setting current prices used by businesses that rely solely on competitive conditions and set prices slightly higher or lower than competitors, it is believed to reflect the collective wisdom of the industry. This method is used in a market where homogeneous goods are sold under conditions of pure competition. Under these conditions, it is not possible to sell the goods at a higher price; at the same time, there is no need to set a lower price, since the goods can be sold at this market-acceptable price.

A distinctive feature of enterprises that apply this approach to pricing is that they do not seek to maintain a constant relationship between prices and costs or the level of demand - the enterprise will change the price of a product only when competitors change their prices. The main task in these conditions is to control your own costs. This pricing can be used by enterprises that find it difficult to determine their own costs per unit of production and consider the average prices formed on the market as the basis for their own, so they get rid of the risk of setting a price that the market will not accept.

Method of following the competition leader used in an oligopolistic market where there are a limited number of seller enterprises. As a rule, these enterprises strive to sell their goods at the same or similar prices, because... each of them is well aware of the prices of its competitors. The price level in this market is determined by the goals that the companies dominating the market set for themselves, or by an unspoken agreement between participants.

Under these conditions, smaller enterprises follow the price leader, allowing themselves only small price discounts. In such a market, prices change from time to time following changes in production costs. In this case, one of the enterprises takes on the role of leader, raising or lowering the prices of its goods, and all the others do the same. This method is used if it is difficult for an entrepreneur to predict his own costs, demand or the reaction of competitors - the most reasonable thing in such a situation is to follow the competitive leader.

Tender method or closed bidding method, is specific and is used in the event of a struggle between several enterprises for the right to receive a contract (for construction, development of natural resource deposits, supply of industrial and technical products, etc.). The goal of firms is to obtain a contract and push aside competitors. To implement it, it is necessary to take into account and identify competitors: the higher the price, the lower the likelihood of receiving an order, and vice versa. Thus, when offering a price, the company proceeds from the prices that competitors can offer, and not from the level of its own costs or the amount of demand.

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Pricing tasks— problems solved when implementing one or another variant of price behavior.

The main list of pricing tasks, as economic practice shows, is common to any modern state, but varies depending on the types and stages of economic development.

The following pricing tasks are considered to be the main ones:

  • covering the costs of production (or intermediary in its sale) and ensuring a profit sufficient for the normal functioning of the manufacturer (intermediary);
  • taking into account the interchangeability of products when setting prices;
  • solving social issues;
  • implementation of environmental policy;
  • resolving foreign policy issues.

The first two tasks face not only modern society, they were also resolved in the early stages of market development, a feature of which was horizontal connections between producers, intermediaries and consumers (Fig. 1).

Rice. 1. Diagram of the early stage of market development

Under these conditions, price is purely a function of the market.

First task- covering the costs of production and ensuring profit - the requirement of the seller-manufacturer and intermediary. The more favorable the market conditions for the manufacturer, i.e., the higher the price he can sell his products at, the greater the profit he will receive.

Second task— taking into account the interchangeability of products is the main requirement of the consumer. He is not interested in how much it costs to make a given product. If the same product is offered on the market at different prices, the consumer will naturally prefer the one offered at a lower price. If a better and lesser quality is offered at the same price quality product, the consumer will prefer the product whose quality is higher.

Other tasks arose already on modern stage pricing, they are especially important to solve as we move from an undeveloped, spontaneous market to a regulated market.

In a developed market, economic balance is achieved not so much with the help of a spontaneous regulator, but rather through the implementation of state policy designed to express national interests. The developed market is shown in Fig. 2.

Rice. 2. Market development scheme

Under these conditions, price is a function of both the market and the state. Environmental, political, social issues, issues of stimulating scientific and technological progress - these are, in fact, national issues. Therefore, in the absence of a body representing national interests, they cannot be resolved.

The main price lever in resolving foreign policy issues, it is the supply at preferential prices or the purchase at inflated prices of products for countries in relation to which a favored policy is being pursued.

Social pricing policy in all countries is manifested mainly in the freezing or relative reduction (increase compared to the prices of other goods to a much lesser extent) in prices for high-priced goods social significance(children's products, medicines, essential food products, etc.).

To stimulate the production of progressive (from a national standpoint) means of production, the state is thinking through a system of incentive prices (removing upper price restrictions, establishing lower price limits to strengthen the competitiveness of producers, etc.). In order to stimulate the speedy introduction of progressive means of production, the state is developing a preferential price system for consumers. The difference between relatively increased prices producers and low consumer prices are often subsidized by the state.

An example of the use of price levers within the framework of environmental policy (the fourth task) is the solution, with the help of prices, of the problem of improving the processing of raw materials, processing and disposal of waste. In this case, the most important issues are the assessment of secondary resources, waste and their processed products.

Pricing is the process of forming the cost of services or goods, which is primarily characterized by the methods and methods of setting prices in relation to all goods. Depending on the chosen method, the development and achievement of the company's goals is determined. Comprehensive analysis understanding how various factors influence the range of costs of goods or services, as well as the choice of the method that forms pricing, ensures profit growth.

Currently the most common methods are:

1. Cost-based pricing is when the starting point is taken as the actual costs (in other words, costs) for organizing the production of a product (service), implementation and further support. This method is the most common.

2. Competitive pricing is the application of tactics and strategies for creating the value of the most successful competitors.

3. Demand-oriented method. In this case, pricing is the subsequent formation of prices taking into account the optimal price/cost ratio.

Now let's look at pricing problems in more detail. As stated above, the cost method is the most common in most commercial structures. Both modern legislation and economics are oriented towards it. Pricing is based on all costs. Prices for services are set that would ensure cost recovery and a stable level of profitability. The main advantage of this method is its simplicity and guaranteed level of income.

A method of pricing when the price of competitors for a service is taken as a starting point. Having found out the prices, the company decides at what level to keep the cost of products. This method makes it possible to get away from However, there are also negative aspects. Different people may be completely unequal. In other words, some can keep prices low and still be profitable, while others, without reducing costs, will sooner or later find themselves bankrupt.

Focusing on demand is quite long and expensive. It is based on the perceived value of a product or service. For use this method It is necessary to take into account that the perception of value varies from person to person.

This is due to taste, knowledge about the product or service, financial situation and so on. There are the following meanings of perceived value:

1. Value is low cost.

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

3. Value is meeting my requirements for a product or service.

4. Value is what I ultimately get for a price.

The principles and methods of pricing in a centralized economy are based on the fact that they are determined at the enterprise, i.e. in production, and often before the start of production. This approach inevitably leads to the fact that production costs are taken as the price base. Hence the dominance of the cost-based pricing method, which was criticized even under the conditions of a planned economy. With this approach to pricing, the market has a very weak impact on the level and dynamics of prices. At best, it records the degree of demand for a product at an already established price.

Fundamental difference market pricing from centralized price setting is that the real process of price formation here occurs not in the sphere of production, not at the enterprise, but in the sphere of product sales, i.e. in the market, under the influence of supply and demand, commodity-money relations. The price of a product and its utility are tested by the market and are finally determined in the market.

Therefore, our ideas about the value of a product (its formation) and price as economic categories of the market are radically changing. Since only on the market does public recognition of products as goods occur, their value receives public recognition through the price mechanism only on the market.

Until recently, this fundamental theoretical position was almost completely ignored in our economic science and pricing practice. However, even now, pricing practice is often such that the costs of producing goods are considered socially necessary long before these goods appear on the market and are recognized as goods by buyers, i.e. long before the costs of their production are publicly recognized. This was largely facilitated by the available last years constant and significant excess of demand over supply and monopoly of goods manufacturers. Obviously, this practice is clearly contrary modern ideas economic theory about market economy.

The main fundamental difference between market pricing and planned pricing is also that the initial prices for goods are determined (set) by their owners, business entities. Only in this case can the alienation of commodity producers from the results of their labor be overcome.

What is the role of the state and government bodies?

Government bodies, depending on the current economic situation, can and do regulate prices only for a limited range of goods and services.

For the vast majority of goods produced by business entities, the state also determines general rules and pricing principles, sometimes sets profitability or price limits and in this way carries out its management functions. But government agencies do not set specific prices for most goods for products manufactured by different owners.

Thus, enterprises or firms sell their goods and services, as a rule, at prices and tariffs established by them independently or on a contractual basis, and only in certain cases provided for by legislative acts, at state prices. State regulation of prices is carried out for the products of enterprises that occupy a monopoly position in the goods market, as well as for goods and services that determine the scale of prices in the economy and social security individual categories citizens.

Therefore, during the transition to a market, in a mixed (multi-structured) economy, the market pricing mechanism should not resist, but be flexibly combined with the mechanism of state regulation of prices for goods. separate groups goods. This combination allows the state, with the help of prices, to determine and implement the goals and priorities of economic and social development and form appropriate proportions.

The pricing mechanism in market conditions is manifested through prices and their dynamics. Price dynamics are formed under the influence of two important factors – strategic and tactical.

The strategic factor is expressed in the fact that prices are formed on the basis of the cost of goods. There are constant price fluctuations around the cost. This process is very complex.

The tactical factor is manifested in the fact that prices for specific goods are formed under the influence of market conditions.

The first factor is the factor of long-term prospective action. The second can change frequently (within days, hours), since the dynamics of market changes are very high; a comprehensive study of these changes is required here. Both the first and second factors are very important in a market economy; they need to be mastered perfectly and learned to use skillfully. Otherwise, it makes no sense for an enterprise or firm to join the market economy - this is fraught with negative economic consequences for them.

The first of these factors puts in the most favorable conditions those firms that have modern equipment, advanced technology, use advanced methods of organizing labor and production, etc. As a result, the greatest benefit goes to the company and enterprise whose production costs are lower. The second factor puts in the most favorable conditions those enterprises and firms that are able to perfectly, quickly and flexibly take advantage of market conditions. And in this case, flexibility, careful preparation of production and production infrastructure, as well as highly professional performers (personnel) are required. The greatest confidence in success and gain in the market are those firms and enterprises that have the opportunity to skillfully use both factors.

Consequently, in market conditions, price dynamics are formed in a completely different and largely unpredictable way. But this is the nature of the market and its laws that cannot be ignored. On the contrary, it is necessary to deeply and comprehensively study all market factors and learn how to use them correctly.

It should be borne in mind, and this is confirmed by the experience of foreign countries, that the state can and should economically influence market conditions and price dynamics. However, the mechanism of government influence on the level and dynamics of prices in the context of the transition to a market is poorly established, which high degree The monopoly of many manufacturers leads to higher prices.

In this regard, a well-thought-out system of measures is required, which have already been tested in countries with market economies.

These include:

Establishment of price ceilings by government agencies;
- measures taken by governing bodies aimed at developing competition;
- appropriate tax policy, etc.

A large role in this matter should be given to local governments, and all events organized in this area must be formalized by legislative acts in the center and locally.

An integral and very important element of the market is competition. Only owners can be normal competitors. The diversity of structures under one owner creates a monopoly, which gives rise to stagnation and conservation of backwardness in production.

The monopoly of state ownership in many industries is the main obstacle to the flow of resources directly through enterprises under the influence of the mechanisms of the law of value and pricing.

Therefore, there was an urgent need to change property relations, which should be done through legislation. It is necessary to introduce a variety of forms of ownership and recognition of their equality before the law. However, for market mechanisms to truly work, there must be a real diversity of forms of ownership at the enterprise level and their actual legal equality.

At present, state ownership still dominates in many respects. In this regard, the most important problem is the conversion of state property into collective and private property. The privatization of property, the transformation of workers into real owners in their enterprises, in production, and the overcoming of their alienation from property are the massive socio-economic basis for transferring the economy and the entire society to a market economy. Without the privatization of property, such a basis cannot be created; it simply does not exist. Without privatization of property, market, commodity-money relations cannot develop.

It should be noted that the market is a tough, uncompromising examiner of all its participants for their survival in the competitive struggle. The main condition for viability in the market is high level production and high professionalism in its management. Already, many firms and enterprises, unable to withstand the competition, go bankrupt and become bankrupt. But the capacity of these enterprises does not disappear, they change hands, are technically improved, updated and included in the reproduction process on a new, more efficient basis. Therefore, the bankruptcy of a particular owner and entrepreneur often results in an increase in economic efficiency for society as a whole.

Competition is a powerful driver of a market economy. It is she who moves the economy forward, using such an effective mechanism as the law of value, the pricing mechanism. Competition is a kind of test for an entrepreneur on the perfection of his production, on viability and survival. But at the same time, competition, and this is the main thing, is a mechanism for stimulating constant and comprehensive improvement of production, a mechanism for consolidating everything healthy in the economy and displacing what is imperfect and lagging behind.

Therefore, it is no coincidence that in antimonopoly legislation Western countries infringement of fair competition is considered one of the most serious crimes. Fair competition is key; to create it means to create a market.

The foundations of success in competition are rooted in the state of production. The world practice of a market economy is based on flexible production. It has the ability to quickly, as new needs arise, adapt to meet them, while dispensing with virtually no increased costs during the development of new products. If there is no flexible manufacturing, then the development time will be long. Without this production capability, it is impossible to compete with competitors in the market. Therefore, the transition to a market economy, in addition to market transformations themselves, requires a radical restructuring of production (technical, technological, organizational, etc.). This is a fundamental provision that is often forgotten, and often deliberately tried to be ignored - most likely because such a restructuring is associated with significant capital costs (investments).

As already noted, our economy still has a monopoly of state ownership. This monopoly is one of the main obstacles in the transition to a market economy. And vice versa, the variety of forms of ownership (cooperative, rental, joint stock, personal, etc.) is the basis, the economic basis on which market relations actually grow and develop.

The practice of foreign countries with developed market economies has developed a system of antimonopoly measures, enshrining them in legislation. This path awaits us too.

Adopted in Russian Federation The Law “On Competition and Restriction of Monopolistic Activities in Commodity Markets” is aimed at suppressing any type of monopolism in the national economy. It creates ample opportunities for development entrepreneurial activity in conditions of competition, free struggle for the consumer with flexibility in prices, quality, terms, with increased attention to the buyer.

Competition inevitably puts an entrepreneur in a position where he is forced (if he wants to survive in the competition) to change a lot in the strategy and tactics of production, to continuously work on its improvement, improve the quality of his products, develop new types of them, use the most advanced and flexible pricing methods etc.

The market pricing mechanism must be such that it creates conditions for competition and the elimination of monopolism in industry and trade and through this contributes to the optimization of their structure, as well as the structure of consumption.

An organic element of a planned economy is a system of prescriptive pricing, which weakly takes into account the economic interests of product manufacturers and their consumers. To ensure economic development National economy it is necessary to monitor the real increase in price and decrease in cost of elements of production costs and maintain correspondence between the supply and demand of goods. However, prescriptive prices cannot serve these purposes.

The effectiveness of the pricing method is primarily determined by how fully it takes into account demand, which determines the current market conditions and shapes the structure of investments and the economy itself. Policy prices signal little or no change in demand. This causes a constant shortage of goods and gives rise to imbalances in production and consumption.

The absence of a market pricing mechanism does not prevent inflation in a planned economy. The inherent hidden inflation is accompanied by a shortage of goods and services. When hidden inflation becomes open, prices rise sharply.

Thus, prescriptive pricing causes a number of destabilizing contradictions in the economy, leading to a violation of the proportions of reproduction, a distortion of the interests of producers and consumers of products, and a separation of the economy from the final consumer.

The system of prescriptive pricing cannot serve as a tool for coordinating economic interests and is objectively a brake on economic development. This conditions the inevitability of the transition from a system of directive prices to prices, the establishment of which is based on a mutual agreement between the consumer of a product and its manufacturer.

Prices that are set by agreement of the parties in market conditions are called negotiated (free) prices. The idea of ​​contractual market pricing is to direct the manufacturing enterprise to produce goods that are in demand, which should help eliminate shortages. Flexibility and efficiency in setting market prices leads to the fact that the economy becomes more dynamic and focused on meeting social needs. Free (negotiable) prices, which are established by agreement of producers and consumers of products, are the most important element coordination of economic interests in the national economy.

The impact of a free pricing system on the economy can only be traced over time. If at some point the balance of supply and demand is achieved, then in the future it may be disrupted and, as a rule, is disturbed. In this regard, a special role is played by a systematic approach to free pricing in dynamics, consideration of market prices as one of the constituent elements of the socio-economic system. Based on this, we can draw the following conclusion: free prices can operate normally only in combination, in a system with all other elements that make up a market economy.

It should be said that free prices by themselves do not ensure economic growth, and in many cases, especially in conditions of shortage, lead to a rapid increase in the price level. Rising prices in an unbalanced economy leads to a number of negative consequences for the country's economy.

A rapid rise in prices in an unsaturated and largely monopolized market for goods and services leads to disruption of production. At the same time, the reliability of planning at the level of an individual enterprise or firm decreases and the proportions of intra-industry and inter-industry connections are disrupted.

As a result, due to the fact that there is an easy opportunity to obtain additional profit, caused not by production growth, but by rising prices, incentives to increase production output in physical terms are falling. In conditions of inflation, this provokes a further decline in production and prevents the economy from emerging from the crisis.

Therefore, the rapid and simultaneous spread of free pricing for the bulk of the national economy's products can and has led to a deepening economic crisis in Russia. Thus, the simultaneous transition to free pricing for all goods was not economically and politically justified. It would be necessary to carry out a gradual transition to free prices and control their growth, pursuing an active anti-inflationary policy.

In order for the process of transition to free prices to occur normally, i.e. In order for the growth of free prices to be within acceptable limits and not lead, first of all, to a reduction in production, the following conditions are needed:

1) real economic independence of enterprises that have the right to participate in concluding price agreements;
2) no shortage of goods transferred for sale at free prices;
3) the absence of a monopoly of commodity producers;
4) structural restructuring of the economy, primarily basic sectors of the economy, and conversion of the defense complex;
5) ensuring a single economic space within the state;
6) legally established right to free choice of suppliers and consumers.

In the absence of the above conditions, it is necessary either to limit the scope of free prices, or, allowing their free movement, to carry out state regulation. Consequently, in these conditions it seems necessary to organize observation and control over free prices. Apparently, this is the most acceptable way to implement a policy in the field of free pricing during the transition to a market. Such control makes it possible to stop the decline in production, limit the rate of inflation, create incentives for commodity producers, and increase incomes through growth in production rather than prices.

In conditions of rapidly changing economic conditions, as is the case in Russia, the study of market conditions and the development on this basis of strategy and pricing tactics at each stage of economic development should begin with an analysis of the general economic situation in the country, i.e. from the analysis of macroeconomic processes.

With the transition of the economy to free pricing, the problem of bringing prices closer to costs that take into account objective differences in regional costs and demand emerging in different markets becomes more acute. In this regard, deep theoretical development requires the problem of territorial (regional) differentiation of costs and prices in a market economy. In these conditions, it is necessary to proceed from the fact that for individual goods there are objective features of the formation of connections between producers and consumers, which determine the nature and area of ​​sales markets, their division into a single market and into a system of regional (local) markets with their own price level. The price system formed in one regional market, through direct and feedback links, affects the price systems operating in other regional markets, as a result of which a single market and a price system adequate to this market are consistently and gradually formed. This process, which includes price confrontation and attempts by individual regions to solve their economic problems with the help of prices at the expense of other regions, is likely to be quite painful.

Considering the ever-increasing importance of the development of world economic relations for our economy, the system domestic prices should increasingly reflect the movements and trends of world prices. This is inevitable if we really want to build a market economy and maximize the benefits of economic cooperation with the world community.

In the conditions of mutual economic dependence of the CIS countries, pricing issues become more relevant. They are resolved through the conclusion by the CIS countries of intergovernmental agreements on the principles of trade and economic cooperation, which contain price formulations determined by the parties. Their essence is that in some cases, payments for supplies of products from enterprises in the Commonwealth countries are made at negotiated prices, and in other cases, for certain, most important, mutually agreed upon types of products, world prices are used, recalculated into rubles at the agreed rate.

A number of agreements concluded by Russia with the CIS countries also stipulate the need for a coordinated policy in the field of pricing.

In the first years of the development of the Commonwealth, the pricing practice of interstate trade between the CIS countries was largely disadvantageous to Russia, since critical resources were exported from it at relatively low, in comparison with world, prices, and products were imported mainly at free prices, the level of which sometimes exceeded the world price or was close to it.

To prevent price increases due to unjustified inclusion of costs in production costs, agreed upon principles and methods for calculating product costs should be used. Therefore, it is advisable to provide in agreements for the exchange of information on applicable regulatory documents on pricing that are of mutual interest, as well as on the level and dynamics of free prices for the most important types of products.

The agreed pricing policy of the Commonwealth states during commodity exchange operations should be reflected in intergovernmental agreements, the implementation of which should be subject to proper control. Economic sanctions established by law should be applied to price violators, and, if necessary, these issues should be brought to the attention of governments.

Consequently, there is a need to implement a coordinated pricing policy for interstate supplies in conjunction with agreements on monetary relations.

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To effectively manage a company, you need to know how the price of a product or service is formed, that is, the basics of pricing methods. Analysis of real prices allows the manager to decide whether it is necessary to increase production capacity or to reduce production volume, in which direction to work, and what to invest in so as not to be left without profit. If an organization has the right pricing policy, it will be able to achieve its desired goals. Below are the main pricing methods, the use of which will help a business become more successful.

Traditional Pricing Methods

Pricing is a process during which the cost of products and services is determined. There are different pricing systems.

Determining the cost of a product or service is preceded by the following steps:

    detection of factors beyond the control of the company that can affect the price of a product;

    determining the purpose for which the price of a product or service is calculated;

    choice of cost formation method;

    developing a strategy by which the price will be determined;

    implementation of market value adjustments.

The following price formation systems are distinguished:

    Market pricing is based on an analysis of the balance of supply and demand.

    Centralized government pricing. The use of this system assumes that the cost of goods is determined by the state and depends on the costs of production and sales of products.

The issue of pricing should be approached wisely. The cost of goods must be such that the company can:

    occupy the desired market share;

    be profitable;

    achieve all your goals.

It should be noted that the price cannot be fixed - it must be varied as the market situation changes.

In order to set the price of a product, the various mechanisms used must form a single integrated system of pricing methods:

    interdependence of prices for products of one product group;

    development of a discount system;

    periodic price changes;

    establishing the cost of products taking into account prices for analogues produced by competing enterprises;

    setting prices for new types of products.

In our country, the cost of the same goods sold in different regions varies greatly. As a rule, prices for goods are higher in the Far East federal district and in the Far North.

The essence of pricing methods lies in the sequential passage of the following stages:

1. Identifying the purpose of determining the cost. Here you need to find out what the company wants to achieve by setting a certain price for the product.

The objectives of the organization may be:

    growth in sales volumes;

    gaining and maintaining reputation;

    strengthening its position in the market;

    gaining consumer trust, expanding the client base, etc.

2. At the second stage, you need to estimate demand by finding out how elastic the prices for a product are (that is, what will be the demand for them when certain prices are set).

3. Determination of production costs and ways to reduce them. The enterprise will receive more profit and develop if the price of the product is maximum and the costs of its production are minimum. The use of “economies of scale” is promising. It involves the creation of conditions conducive to reducing production costs while increasing production capacity.

4. Studying the range of goods supplied to the market by competitors and their prices. The purpose of this stage is to determine the “price of indifference.” This is the price at which a buyer can buy a product from any manufacturer with equal probability. To persuade him to purchase its products, the company can:

    reduce the price of a product;

    improve its quality;

    create more convenient payment conditions for consumers;

    improve the quality of service.

What other methods of pricing products are there?

Success production activities depends on many factors. The main ones include pricing policy. By regulating the cost, you can make a profit, ensure the production of highly competitive goods, and increase demand for them. Prices are an indicator that reflects the results of the work of all departments of the organization, through which enterprises can realize their commercial goals.

When setting prices, you should remember that the company must be profitable. If the required percentage of profitability is not included in the cost of goods, then the profit of the enterprise will gradually decrease. This may lead to a decrease in production volumes, deterioration financial condition companies. However, in some cases, to increase competitiveness, you can set low prices using the necessary pricing method, but the company will not make a profit. This will help conquer the target market segment and oust competitors from it.

It happens that an organization deliberately reduces prices for its products, which entails a decrease in profits. However, this helps it expand its sales market, and losses are compensated in the future by increasing demand and sales volumes.

It is quite difficult to regulate the cost, since it depends on the cost of raw materials and materials used for the manufacture of products, the cost of paying workers, the consumption of water, electricity, and other resources during production. In addition, it is impossible to endlessly reduce the material intensity of products. Unlike the cost price, the price for a product can be set by an enterprise at any price.

But here you need to understand that if the price of a product is unreasonably high, the buyer will not purchase it and will prefer a cheaper similar product from a competitor. Therefore, the goal of the pricing policy should be to establish the maximum cost while maintaining sales volumes or even increasing them.

The organization makes a profit due to such a marketing element as price - only it provides income to the company. The price of a product on the market cannot be established without taking into account various factors. It depends, for example, on how many competitors are operating in the market, on general condition economy. These factors are also elements of traditional marketing and can change.

One of the objectives of the value formation strategy is to determine the price level and their upper and lower limits for various categories goods. To set the price correctly, it is necessary to take into account which group the product belongs to, whether it is useful, what its quality is, and how significant it is for buyers. It is also necessary to assess the purchasing power of the population, analyze prices for similar products from competing enterprises and for substitute products.

Managing pricing means developing a set of measures to maintain established prices and regulate them, guided by the results of demand analysis, the cost of similar goods, and the level of competition.

The pricing strategy is built in several stages:

1. Study of prices, which involves elaboration of the following questions:

    determination of price standards;

    compilation and analysis of buyer characteristics;

    validity of price differentiation;

    taking into account the prerequisites for fluctuations in the cost of goods;

    the relationship between price standards and other elements of marketing;

    elasticity of demand;

    reaction of competitors to the cost of the product;

    correspondence of the price of the product to its image;

    product life cycle and its impact on price formation;

    development of a discount system;

    differentiation of cost depending on the territory in which the product is sold, target market segment, season, etc.;

    tasks of pricing strategy.

2. Determining the goal on the basis of which the price will be set:

    pricing is necessary to extract benefits, maintain price levels, and successfully compete with other companies;

    The areas of cost formation include the price level, their regulation, and the system of discounts.

3. Selecting the most appropriate pricing strategy.

Price formation is carried out in several stages:

    first, a base price is established, which does not take into account discounts, markups, transportation costs, insurance costs, and maintenance;

    determine the price, including the components listed above.

What pricing methods are there? The base cost is calculated using the diagrams below. Moreover, they can be used not only separately, but also combined.

1. Full cost method, or cost plus method(Full Cost Pricing, Target Pricing, Cost Plus Pricing). To determine the price, the production costs of the product are first calculated. Then the resulting amount is increased by the profit rate. The increase in cost must be such that the enterprise can sell goods and make a profit. As a rule, the cost also includes the costs of paying indirect taxes and customs duties. This method is used by organizations that have a clear differentiation of goods. In this way, the price of products produced for the first time, as well as those that are not competitive, is formed.

For example, a company produces household items and launches production of a new product. She needs to put a price on it. It is expected that 10,000 such products will be produced per year. At the same time, 1,000 rubles will be needed to purchase the necessary raw materials and materials, and 400 rubles will be needed to pay workers (for one unit of goods). According to the plan, fixed costs will be 2,000,000 rubles per year, and revenue will be 4,000,000 rubles.

Let's determine the cost of the product using the marginal cost method.

Let's calculate what profit is planned to be received from sales after variable costs are reimbursed: 2,000,000 + 4,000,000 = 6,000,000 rubles.

Desired revenue from the sale of one product: 6,000,000 / 10,000 = 600 rubles.

The cost of producing one unit of goods will be: 400 + 1,000 = 1,400 rubles.

The cost of production is determined as the sum of total costs and the desired profit after their reimbursement (per unit of goods): 600 + 1400 = 2,000 rubles.

2. Manufacturing cost method(Conversion Cost Pricing). To determine the price, an amount is added to the cost of purchasing the necessary raw materials, materials, and semi-finished products that corresponds to the company’s contribution to the price increase. This method is not used to set prices for a long period of time; it cannot replace the full cost method, being only its addition. Below are cases of its application:

    if the company plans to increase profits while increasing production volumes;

    if a decision is made to continue competition with other manufacturers;

    if, when assessing the profitability of certain categories of goods, the assortment policy changes;

3. Marginal cost method(Direct Costing System). When setting a price, the value of variable costs increases by an amount that can compensate them and ensure the receipt of the planned profit. Using this method allows you to fully cover fixed costs and increase revenue.

4. ROI Method(Return on Investment Pricing). It assumes that when determining the price, profitability should be ensured above the cost of funds attracted from outside. The amount of interest on the loan is added to the total cost of producing a unit of output. This method takes into account the payment of financial resources. It can be used by organizations producing a large number of names of goods, the production costs of which are different. This is how the cost is calculated new products. The return on investment method can be used to determine the production volume of new products.

For example, a company needs to calculate the price of a new product. It is planned to produce 40,000 products annually, variable costs per unit will be 35 rubles. The amount of fixed expenses will be 700,000 rubles. In this case, the company will need borrowed funds (1,000,000 rubles), which it can borrow at 17% per annum.

Let's determine the unit price using the return on investment method.

Let's calculate the fixed costs per unit of product: 700,000 / 40,000 = 17.5 rubles.

Total expenses will be: 35 + 17.5 = 52.5 rubles.

Desired revenue: (1,000,000 × 0.17) / 40,000 = 4.25 rubles/unit. (not less).

The minimum price may be as follows: 35 + 17.5 + 4.25 = 56.75 rubles.

5. Methods of marketing assessments(Pricing based on Market Considerations). These are pricing methods aimed at determining the cost of a product at which consumers will definitely purchase it. In this case, the main goal of the company is to increase competitiveness, and profit and the need to cover production costs are relegated to the background.

For marketing pricing methods, example calculations are given below.

Demand depends on the cost of the product; its elasticity is 1.75.

Let's find out how a decrease in price by 1 ruble will affect demand. The sales volume before the price change was 10,000 products at 17.5 rubles. The total cost is 100,000 rubles (variable costs are 80,000 rubles).

Sales proceeds amounted to: 17.5 × 10,000 = 175,000 rubles.

Profit received before cost reduction: 175,000 – 100,000 = 75,000 rubles.

After the price is reduced, sales volume will increase: 10,000 × (1.75 × 1/17.5) + 10,000 = 11,000 units.

In this case, the revenue will be: 16.5 × 11,000 = 181,500 rubles.

Production and sales costs after the cost change will be:

    constant: 100,000 – 80,000 = 20,000 rubles;

    variables: (80,000 / 10,000) × 11,000 = 88,000 rubles.

    total costs: 20,000 + 88,000 = 108,000 rubles.

The amount of profit after the change in value: 181,500 – 108,000 = 73,500 rubles.

From the calculations it is clear that a decrease in the price of a unit of goods by 1 ruble will lead to a decrease in profit by 1,500 rubles: 75,000 – 73,500 = 1,500 rubles.

Let's calculate how a decrease in the cost of a product by 1 ruble will affect the profit level if fixed costs are 50% of the total.

The costs after the price change will be as follows:

    constant: 100,000 × 0.50 = 50,000 rubles;

    variables: ((100,000 – 50,000) / 10,000) × 11,000 = 55,000 rubles;

    total costs: 50,000 + 55,000 = 105,000 rubles.

Let's determine the profit from selling goods at a reduced price: 181,500 – 105,000 = 76,500 rubles.

Based on these calculations, we can conclude that in this case, the decrease in cost led to an increase in profit by 1,500 rubles: 76,500 – 75,000 = 1,500 rubles.

What are the features of service pricing methods?

Services are fundamentally different from goods. This is due to:

    their immateriality (intangibility);

    the fact that they are consumed individually;

    impossibility of storing them;

    close connection between production and consumption of services;

    inability to ensure stable quality;

    the importance of not only the result, but also the process of providing services.

The cost of services is mainly influenced by supply and demand. Also, the price will depend on how significant these services are for the population. Therefore, market pricing methods cannot always be used to calculate the cost of services. It is necessary to provide benefits, subsidies and consumer subsidies (for example, for services offered by medical institutions, educational ones).

It should be borne in mind that some services are socially significant and vital for citizens, so they should be provided both on a paid and free basis. Price discrimination should not be allowed to occur.

Market conditions have a great influence on the service sector, therefore, the methodology for calculating prices must be flexible. Sometimes it is necessary to differentiate the cost of the same service depending on the need for it (for example, in different time days). It is recommended to provide discounts to ensure a stable income, especially if demand is uneven.

It should be remembered that the demand for services is elastic in price and income, and take this into account when calculating the cost.

As a rule, consumers do not always have reliable information about the quality of services provided by a particular organization and, in their choice, are guided by their cost. This should also be taken into account in the pricing process.

The cost of services is wholesale, but also performs retail functions.

The cost of services can be calculated:

    per unit of service provided (ticket to a museum, art gallery);

    for a set of works, the implementation of which is necessary to provide the service (for example, the services of a cosmetology salon);

    for several complementary services (tour operator services);

    for the right to use them for a certain period of time (for example, a subscription to a swimming pool).

The cost of services can be set arbitrarily, but in some cases it is regulated (if there is a natural monopoly in the market). In addition, prices can be fixed, flexible or change depending on the season. Discount systems are also being developed.

The price structure for different services is different. Their cost can only consist of total costs and profit margins (for example, payment utilities), and may also include tax fees (tourism services).

Selecting a Pricing Method

The most commonly used methods for pricing goods are:

    a costly pricing method - it is used if there is no competition and the manufacturer is confident that there will be no enterprises producing a similar product;

    “following the leader” - this method is used, as a rule, by small companies;

    marketing research – pricing methods in marketing must take into account the marketing strategy adopted by the company.

To finally determine the price, it is necessary to take into account inflation expectations and the impact of possible changes in market conditions. It is also necessary to develop rules for changing the cost of goods in the future, and a system for providing discounts.

It is necessary to begin calculating costs by analyzing pricing methods and choosing the most appropriate one, taking into account the position the company occupies in the market and what its strategy is.

Cost-based pricing methods in an enterprise should be used:

    if products are produced according to individual orders or individually;

    if the demand for products is very small due to the low purchasing power of citizens.

Today, many organizations take costs as the basis for calculating costs. Cost-based pricing methods involve pricing based on the cost of producing a product and the amount of desired profit.

These pricing methods can be used when you need to determine a reference price. The final cost is calculated taking into account changes in the market.

Using cost + profit pricing methods allows you to set the initial price for a product.

When calculating prices this way, you should first calculate the base costs. They represent a combination of fixed and variable costs.

Pricing methods include the following:

Cost-based pricing method taking into account full costs

Implementation costs, as well as administrative ones, are not considered basic; they are included in the premium, which must be set so that it can cover all costs.

The advantage of this method of calculating cost is its simplicity. In addition, the manufacturer will always know the cost of production and sales of products. In this case, he can be sure that they will be reimbursed in full. But there are also disadvantages of the full cost pricing method:

    supply and demand are not taken into account - this can lead to the product being unclaimed;

    If the price of products is regulated by the state, then it will not be possible to reduce the costs of producing goods.

Pricing using the direct cost method

The initial cost is calculated taking into account only variable costs and markups.

Coating fixed costs in this case it is carried out from profit. To provide this opportunity, the price is increased by an amount called added value.

This pricing method, in which costs and profits are the basis for calculations, is usually used by firms that do not need to increase sales volumes and their goal is to maintain the same level.

Pricing based on break-even analysis data

In this case, you need to start from the break-even point. In it, the costs of production and sales of products over the entire period are equal to the amount of profit from sales.

This method is used if there is a need for additional investments in production.

Direct pricing method

Combines cost and market methods of pricing products.

The advantage of this method is that the manufacturer focuses on demand when setting prices.

In addition, when calculating the price, the cost of similar products from other manufacturers is also taken into account.

    following the leader;

    monitoring the reaction of competing enterprises;

    tender formation of prices for products.

A manufacturer focuses on industry leaders if it strives for its product to be on the same level with their products on the market.

It is necessary to pay attention to the pricing policies of competing companies if their influence on the market increases and they show interest in it.

Transfer pricing method

Transfer pricing methods presuppose the existence of an organization that sells goods and services to connected persons, while the amount of tax payments is reduced.

As a rule, these organizations are led by one person, or they have friendly relations.

The price of the product is reduced, so the amount of taxes paid is reduced. The use of such a scheme is a sign of unfair competition.

The most common pricing errors:

    emphasis only on the costs of producing goods;

    unwillingness to promptly change prices in response to changes in market conditions;

    lack of pronounced differentiation of product costs by market segments.

Making such mistakes when determining prices can cause a decrease in profits, losses, or even the ruin of the company.

Most effective methods pricing (price setting methods) – those that take into account the results of marketing research. They allow you to obtain information about the volume of the Russian market, its participants and their shares, the main consumers of the product, as well as an analysis of trends in its development, including forecasts for several years. But do it yourself marketing analysis we do not recommend it to you, since this is not an easy process, it requires processing a large amount of information, and you (as a non-professional in this matter) may miss important data.

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    commercial vehicles and special equipment;

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