The structure and price ratios are predetermined by the action of the entire set of economic laws, which are reflected in the system of pricing factors, i.e. in the aggregate of objectively existing or possible circumstances that predetermine the levels and ratios of prices.

Reasonable accounting of pricing factors involves a deep study of the content, role, relative importance of each pricing factor, the development of criteria, methods, standards for accounting for its impact on levels, ratios, and price dynamics.

In the system of pricing factors, the main ones are those that reflect various aspects of the formation of labor costs that make up the price base.

An analysis of objective circumstances affecting the level and ratio of prices leads to the following classification of pricing factors:

1. Factors that determine the magnitude and internal structure of value and affecting prices by changing the amount of value. These include: 1) qualification, skill of workers; 2) technical equipment of labor; 3) organization of production and labor; 4) natural working conditions (natural factor); 5) location of production and consumption of labor products (geographical factor); 6) the size of the social need for the products of labor.

The first factor determines the amount of value created per unit of labor time, with more complex and intensive labor creating a correspondingly greater value per unit of labor time.

The next two factors change the productivity of labor and thus its outlay per unit of use-value of commodities.

The natural factor determines the natural productivity of labor and the formation of differential rent.

Under the influence of the first four factors, socially necessary labor costs in the sphere of production are formed. The fifth factor determines additional socially necessary expenditures of labor in the sphere of circulation.

It affects prices in those branches of production in which the means or subject of labor are directly natural resources.

The geographical factor affects the value of the products of labor when the processes of production continue in the sphere of circulation. Its role increases for low-transportable products. Under the influence of natural and geographical factors, regional levels of socially necessary labor costs are formed, which serve as the basis for zonal (territorial) price differentiation.

The total mass of labor, which, as socially necessary, can be directed to the production of each type of product depends on the social need for this product. The dimensions of the need, therefore, are among the factors determining the cost of an individual, average in quality, product. This value is formed as a derivative of the total mass of socially necessary labor expended on the production of the entire mass of products of a given kind, and the quantity of this product within the limits of social need for it.

Factors causing price deviations from value, i.e. from the given socially necessary labor costs. These include: 1) the ratio of supply and demand; 2) social significance of certain types of products; 3) the need to use prices for economic incentives.

Content

Pricing Factors

The formation of the overall economic value of the product for the consumer can be described using the following formula:
total value = cost of indifference + positive difference value - negative difference value.
Determining the value of a product for himself, the buyer takes as a starting point the price of the best available varieties of goods from other firms that satisfy the same need.
The procedure for calculating the economic value of a product consists of four main steps:
Stage 1. Indifference price definitions - the definition of the price (or cost) of a product that the buyer is inclined to consider as the best of the alternatives actually available to him. At this stage, you should functionally measure and determine the price that the buyer will pay if he purchases a commensurate amount of goods offered by competitors.
Stage 2. Differentiation - the definition of all the parameters that distinguish the product, both for the better and for the worse, from the alternative. The most frequently analyzed parameters are:
1) functioning;
2) reliability;
3) the number (more or less) of useful properties;
4) the content of useful (harmful) substances;
5) maintenance costs;
6) commissioning costs;
7) maintenance.
Stage 3. Assessment of the significance of differences in the parameters of the product and its alternatives from the perspective of the buyer - at this stage, the differences in the product must be evaluated in monetary terms. Such scores can be obtained in different ways:
1) as a result of a survey of experts and sellers;
2) by conducting test sales and customer surveys using special techniques;
3) based on cost-effectiveness calculations (when it comes to product parameters that can directly reduce the buyer's costs).
At the same time, it must be remembered that the scale of quantitative changes in the level of one or another consumer parameter of a product in comparison with the parameters of alternative products does not necessarily coincide with the scale of the change in the benefits from its use by the buyer and, accordingly, with the change in the amount of money that he agrees to pay for receiving this product.
Stage 4 summing the price of indifference with estimates of the difference between the product and its alternatives - in this case, it is usually recommended to set the price below the upper limit of economic value in order to increase consumer interest in the product.
Pricing is influenced by 2 groups of factors:
1. Internal factors- directly related to the activities of the enterprise (firm).
1) the cost of production.
2) special properties of the goods- A product with special properties, unique characteristics, will have a higher price, reflecting its quality. Thus, the price of a commodity largely depends on the scale of production.
3) type and method of production(its labor intensity, quality of materials and labor) - the type and method of production determine the serial production. Small-scale production, and even more so unique, single, has a higher cost and price. The production costs of mass-produced goods are usually insignificant, so they are set relatively low prices;
4) mobility of production;
5) advertising software;
6) focus on market segments- the development of several market segments by the enterprise determines the differentiation of prices in order to meet the needs of various categories of buyers with different incomes;
7) product life cycle- usually products have a higher price with a short life cycle and relatively low - with a long one;
8) the duration of the cycle of distribution- an increase in the number of intermediaries in the chain "producer - consumer", leads to a significant increase in the final price of the goods;
9) service organization;
10) enterprise reputation(companies) in the market – the image of the company, well-established service and after-sales service allow you to set higher prices.
2. External- do not depend on the activities of the enterprise and take into account changes in general economic processes, conditions in the country and abroad. External factors are determined by the market in which the firm operates.
If there is strong competition in the market, there are a large number of goods of similar quality, then the company usually sets lower prices to conquer it, sometimes even less than the full cost.
If a company starts producing a completely new and somewhat unique product, then when setting a price, it may not take into account market competition, but it must keep in mind that the buyer needs to get used to the new product, so its task is to create consumer demand. And in this case, the prices set for products should be flexible enough. Thus, in order to make a final decision on setting a price, it is necessary to know the situation on the market well, i.e. buyer's needs.
External factors include:
1) political stability in the country;
2) availability of basic resources;
3) the scale of state regulation of the economy and, accordingly, prices;
4) the general level of inflation;
5) foreign economic policy of the state;
6) perfection of tax legislation;
7) the nature of demand for products (consumer preference for high quality or low prices; seasonality of consumer demand).

Goals and methods of state regulation of prices

In conditions market economy state regulation of prices is necessary for:
1) harmonization of the interests of the subjects of a market economy: a commodity producer, a buyer and the state;
2) ensuring the economic security of the country;
3) protection of the domestic commodity producer;
4) protection of the least well-off segments of the population from unreasonable price increases for essential goods;
5) creation of conditions for normal competition;
6) state influence on the activities of monopoly enterprises;
7) limiting the inflationary rise in prices as a result of the emergence of a commodity deficit, a sharp rise in prices for factors of production;
8) maintenance of price proportions.

The state regulates prices affects supply and demand.
The impact on the supply determinants includes:
1) public procurement of goods;
2) release of stocks;
3) encouraging the sale of surplus products on the foreign market;
4) expansion of imports;
5) credit policy;
6) tax policy;
7) labor force policy.
Impact on demand:
1) propaganda companies;
2) wage policy and taxation;
3) pension policy.

The degree of state regulation of prices varies depending on the state of the economy: it increases in crisis situations and weakens as the crisis is overcome.
The primary form of state influence on prices is price monitoring; it serves as the basis on which all state measures for direct or indirect price regulation are based. Observation is carried out by statistical bodies, research centers. The main purpose of price monitoring by government agencies and social partners is to measure the cost of living in order to determine the index of the annual nominal increase in wages, pensions, benefits, as well as to ascertain the impact of price increases on production costs and national competitiveness.
The state influences producers by 2 groups of methods:
1) straight
2) indirect.
I. Direct methods of price regulation
Establish certain pricing rules. They are divided into 2 groups:
1) regulated or fixed prices
a) fixed prices
The state can set extremely high prices (not allowing them to increase further on social significant goods or trying to prevent inflation), extremely low (protecting domestic producers, for example, in Russia - for alcoholic products, in Japan - for rice), as well as rigidly fixing the price (preventing price competition).
For example, the Decree of the Government of the Russian Federation of December 7, 1998 "On the basics of pricing in relation to electrical energy consumed by the population" established the introduction of limit levels of tariffs for electrical energy consumed by the population of the Russian Federation, and determined their minimum and maximum levels. At the same time, the minimum level is set at 50% of the actual cost of energy, and the maximum at the full cost. For the low-income segments of the population, vacations are allowed at tariffs below the minimum level (within the socially justified norm of monthly electricity consumption).
With the introduction of marginal prices, pricing entities are obliged to sell products at a price not higher or lower than the established limit.
The state uses the following main methods of fixing prices: fixing monopoly prices; freezing prices.
= use list prices.
Price lists for goods and services are official collections of prices and tariffs approved and published by ministries, departments, state pricing bodies. The number of prices fixed in price lists can be very different: close to 100% in conditions of strict total state control over the price level and insignificant, almost close to zero with a predominantly market-based pricing method. Usually, with the help of price lists, the prices of products of monopoly enterprises are regulated: electricity, gas, oil, utilities, transport. The prices of these products cause a multiplier effect in the economy, so their fixation at a certain level contributes to the stabilization of prices in all other areas and, accordingly, the economic situation as a whole. The most difficult moment is to establish the level at which the price in the price list should be fixed. Fixing prices above the market level leads to a state of excess supply in the market, and below - to a shortage.
= fixing monopoly prices.
The state fixes the prices of enterprises that occupy a dominant (monopoly) position in the market, which allows them to significantly influence competition, market access and price levels, which ultimately limits the freedom of action of other market participants. Antitrust law helps to decide whether a given enterprise is dominant or not. In accordance with Russian legislation, an enterprise occupies a dominant position if its market share is at least 35%.
= price freeze.
This approach is used in case of disproportions in prices or crisis situations in the economy and is carried out solely for the purpose of stabilizing the situation. The use of price freezes is considered appropriate only in the short term.
b) price regulation by setting marginal price levels (setting an upper or lower price limit) - is the introduction of fixed coefficients in relation to list prices, the establishment of marginal markups, the regulation of the main parameters that affect the formation of prices (the procedure for forming costs, the maximum amount of profit, the size and structure taxes), the establishment and regulation of prices for products and services of state-owned enterprises.
= setting limits on supply and marketing allowances and trade margins;
= marginal price change rates;
= marginal levels of profitability- the method is widely used in Russia, but is practically not used in world practice, because does not interest enterprises in reducing costs.
2) legislative restrictions (regulation of the free pricing system) – carried out by means of legislative regulation of the pricing activities of market participants to limit unfair competition. This method of state influence on the pricing process consists in establishing a number of prohibitions:
a) prohibition of price discrimination
b) prohibition of dumping - this is a ban on the sale of goods below its cost in order to eliminate competitors. In practice, this prohibition is especially relevant if there is a market leader who seeks to force out competitors or prevent their entry into this market. In addition, this prohibition is widely used in the practice of international trade, as it helps prevent aggressive importers of products with low production costs from entering the market.
c) a ban on unfair price advertising - this is a ban on such advertising that creates the illusion of price reduction in consumers in order to attract their attention to the product.
d) a ban on price fixing by any member of the distribution channel ,
= ban on vertical price fixing - this is a ban on dictating prices by manufacturers to intermediaries, wholesale and retail trade.
= ban on horizontal price fixing - this is a prohibition on an agreement between several manufacturers to maintain product prices at a certain level if their combined market share will provide these producers with a dominant position in it. This limitation is especially relevant in an oligopolistic market. However, it can easily be ignored if, for example, oligopolistic enterprises agree among themselves not on a single price, but on a single method for calculating costs and determining the price of the final product.

For example, in the United States, price agreements between manufacturers, wholesalers and retail, control by manufacturers and wholesalers of retail prices of their goods. In Austria, the Minister of Economics sets either a price ceiling for socially important goods or a price range. Control is carried out by local governments and social partners (trade unions, etc.). In France, agreements between the financial administration and the confederations of enterprises set limits or price indices for certain goods.

II. Indirect methods of price regulation
Influencing prices through the use of economic levers:
1) taxation,
2) public procurement,
3) financial, investment, credit and monetary policy, etc.

Levels of price regulation

At present, the competence in price regulation is delineated between the federal executive authorities and the executive authorities of the subjects of the federation.

1 Government of the Russian Federation and federal executive authorities govern:

1) natural gas, associated petroleum gas and dry stripped gas (except for gas sold by gas producing organizations that are not affiliated persons of the Russian Joint Stock Company "Gazprom", joint-stock companies"Yakutgazprom", "Norilskgazprom" and "Rosneft-Sakhalinmorneftegaz", as well as sold to the population and housing construction cooperatives), associated petroleum gas sold to gas processing plants for further processing, a wide fraction of light hydrocarbons, liquefied gas for domestic needs (except for sales to the population );
2) electricity and heat, the tariffs for which are regulated by the Federal Energy Commission;
3) transportation of oil and oil products through main pipelines;
4) defense products;
5) rough diamonds, precious stones;
6) prosthetic and orthopedic products;
7) transportation of goods, loading and unloading operations in railway transport;
8) transportation of passengers, luggage, cargo luggage and mail by rail (except for transportation in suburban traffic);
9) loading and unloading operations in ports, port dues, dues for passage through inland waterways from ships sailing under foreign flags;
10) individual postal and electric communication services, communication services for broadcasting programs of Russian state television and radio organizations according to the list approved by the Government Russian Federation;
11) vodka, alcoholic beverages and other alcoholic products with a strength of more than 28 percent, produced in the territory of the Russian Federation or imported into the customs territory of the Russian Federation;
12) ethyl alcohol;
2. Executive authorities of the subjects of the federation prices (tariffs) are regulated for the following types of products:
1) natural gas sold to the population and housing construction cooperatives;
2) liquefied gas sold to the population for household needs (except for gas for refueling motor vehicles);
3) electricity and heat, the tariffs for which are regulated by regional energy commissions;
4) solid fuel, household stove fuel and kerosene sold to the population;
5) transportation of passengers and luggage by all types of public transport in the city, including the subway, and suburban traffic (except for railway transport);
6) payment by the population for housing and utilities;
7) services of water supply and sewerage systems;
8) trade markups on the prices of medicines and medical products.
Executive authorities of the constituent entities of the Russian Federation may introduce state regulation of tariffs and surcharges for the following types of services:
1) margins on products (goods) sold at catering establishments at general education schools, vocational schools, secondary specialized and higher educational institutions;
2) trade markups on prices for baby food (including food concentrates);
3) transportation of passengers and baggage by rail in suburban traffic in agreement with the Ministry of Railways of the Russian Federation (railroads) and subject to compensation for losses arising from the regulation of tariffs at the expense of the relevant budgets of the constituent entities of the Russian Federation;
4) transportation of passengers and luggage by road on intra-regional and inter-regional (inter-republican within the Russian Federation) routes, including taxis;
5) transportation of passengers and luggage on local airlines and river transport in local traffic and at crossings;
6) services provided by industrial railway transport enterprises on sidings, as well as some other types of services.
The rights of executive authorities in terms of price regulation are largely linked to the possibilities of their budgets.

Costly pricing methods

Cost methods are based on the orientation of prices to production costs, they are one of the most common in pricing.
In general terms, their essence lies in the fact that a fixed amount of profit and indirect taxes are added to the calculated unit cost of production:
C \u003d C + P + H, (1)
where C is the cost of a unit of goods;
P - profit per unit;
H - indirect taxes and deductions included in the price of the goods.
If you take the cost price formed only on the basis of variable costs to calculate the price, then there is a danger that the selected markup level will not always be able to cover fixed costs, and this, in turn, will lead to losses.
If the full production cost is used to calculate the price, then the markup should not only ensure the required level of profitability, but also cover non-production costs.
If the management of the enterprise needs to see the amount of real profit per unit of production, then the full cost should be taken to calculate the price. Its value should be determined as the full production cost, increased by non-production costs. This method is widely used in the retail industry, where standard size margins is 20-15%. At the same time, the lower the initial price of the goods or the higher the sales volume, the lower the markup percentage.
In domestic practice, cost methods are used when setting prices:
1) for fundamentally new products, when it cannot be compared with the manufactured products and the magnitude of demand is not sufficiently known;
2) products manufactured under single orders with individual features production (construction, design work, prototypes);
3) goods and services, the demand for which is limited by the solvency of the population (repair services, essential products).
Advantage of the method lies in its simplicity, because manufacturers know the costs and simplify the pricing process for themselves.
The disadvantage of the method is the lack of flexibility, since when using it it is impossible to take into account the state of demand and competition, and therefore there is no possibility of a quick response to changes in the market situation. At the same time, the use of this method is quite acceptable in industries with low competition, and prices here are traditionally set on its basis.

1. Method "average costs plus profit"
The price is calculated by adding a certain markup to the cost of goods.
essence this method is to establish a certain percentage markup to the variable production costs for each type of product.

% \u003d (NP + FC + PZ + HP) / VC;
where % is the markup percentage
NP - the desired amount of profit
FC - fixed costs
PZ - production costs
HP - Overhead (Selling, General, Administrative)
VC - total variable production costs
P = VC units + % * VC units .
P - price based on variable costs
VC unit - variable production costs per unit of output
This method is advisable to use if the enterprise meets two conditions:
1) the value of the assets involved in the production of each type of product is the same;
2) the ratio of variable costs to other production costs is the same for each type of product.
The price is set on the basis of a percentage markup on all variable production costs. It must cover the entire amount of costs and provide the desired profit, which are indicated in formula (1).
2. Gross Margin Pricing Method
To establish a price using this method, the gross profit is used as the calculation base.
Gross profit is defined as the difference between sales revenue and cost of goods sold.
The price charged must provide the desired profit and cover all costs that are not included in the calculation of gross profit. This method is easy to apply, since information on production costs, operating costs per unit of output can be easily obtained from accounting data and there is no need to separate costs into fixed and variable.
The following formulas are used for calculations:
% \u003d (NP + HP) / Z;
Z - total production costs
P \u003d Z units. + % * W units .
P - price based on gross margin
3 units - total production costs per unit
The price calculated based on variable costs is the same as the price calculated based on gross profit. The difference between these methods is that in the first case only variables are used, in the second– all production costs. The difference is offset by a percentage markup. It is often very easy to determine the total cost of production per unit of output, which makes the gross margin pricing method a convenient pricing tool.
3. Return on sales method
When using this method, the percentage markup includes only the desired amount of profit. All costs must be allocated to units of production. Since overhead (sales, general and administrative) costs are more difficult to attribute to specific types of products than variable and fixed production costs, arbitrary bases can be used to allocate them. However, such a distribution of selling, general and administrative costs can lead to errors in determining the price of the goods, so the considered method can only be used to calculate the original price.
The following formulas are used for calculations:
% \u003d NP / Z;
P \u003d Z units. + % * W units .
P - price based on profitability of sales
4. Method of pricing based on return on assets
When setting the price using this method, the minimum desired rate of return on assets is taken into account. It is effective when the value of the assets used in the production of a given product can be accurately determined. If this is not possible, then the probability of obtaining an incorrect result is high and the use of this method becomes impractical.
The following formula is used for the calculation:
P \u003d Z units. + Ra * A /: Q.
P - price based on return on assets
Ra is the desired rate of return on assets
A is the total value of the assets involved
Q is the expected output
5. Full cost accounting method
Businesses that base their pricing on costs often use the full cost method rather than the variable cost method, explaining this as follows:
1) in a long-term period, all costs incurred must be covered (some managers believe that this can only be achieved using the full cost accounting method);
2) it is considered expensive to analyze the volume-cost ratios for all products (sometimes in the thousands), so the floor price is calculated based on the production cost;
3) demand curves are rather uncertain;
4) The production cost ensures greater stability.
6. Method based on break-even analysis
This method is another costly pricing method in which a break-even point and profit target are determined. Break-even analysis is carried out on the basis of a study of the ratio "costs - volume - profit", which reflects the relationship of costs, revenues, production volume and profit.
This method is reduced to determining the break-even point of production (critical point) - such a volume of production, in the implementation of which a zero result is achieved: the enterprise does not receive profit, but does not incur losses.
The following methods are used to determine the break-even point:
1) mathematical
To calculate the break-even point, the volume of sales in units of production is determined, which is necessary to cover all costs:
B - VC - FC \u003d P.
B - sales proceeds
VC - total variable costs
FC - fixed costs
P - profit
Given that
B \u003d R units. *Q;
R unit – unit price
Q - sales volume
VC = VC unit *Q,
VC unit - variable costs per unit of output
Then the formula for calculating the profit of the enterprise can be represented as follows:
(R units * X) – (VC units * X) – FC = P,
where X- the volume of sales at the breakeven point.
Since profit is equal to zero (the purpose of the calculation is to determine the volume of sales or the critical point at which the enterprise has no profit), the following formula is used to calculate the volume of sales:
X* (P unit - VC unit) - FC = 0.
Thus, in order to calculate the sales volume at which the profit is zero, or the break-even point, it is necessary to divide the fixed costs by the difference between the selling price and the variable costs per unit of output:
X= FC / (P units - VC units).
Consider an example. Assume that a mirror company has received an order for a new model.
At the same time, the price of a unit of production is 400 rubles, the variable costs per unit are 250 rubles, and the fixed costs for the entire volume of production are 450,000 rubles. If X is the break-even point in units of output, then using the above, we get:
X \u003d 450000 / (400 - 250) \u003d 3000 pcs.
Thus, 3,000 mirrors need to be realized to reach the breakeven point. The volume of sales in monetary terms, corresponding to the break-even point, will be: 400 rubles. * 3000 = 1200000 rubles. From the above example, we can draw the following conclusion: only after reaching the volume of revenue in the amount of 1,200,000 rubles. the firm will start making a profit.
2) graphical method.
The basis of this fairly widespread method is the division of costs into fixed and variable. It was first proposed by W. Rautenstrauch in 1930 and was named critical production schedule, or breakeven chart.
When constructing it, it is assumed that in the billing period:
1) there is no change in the prices of raw materials and products;
2) fixed costs are considered unchanged in a limited range of sales;
3) variable costs per unit of output remain constant when the volume of sales changes;
4) implementation is carried out evenly.
When plotting a graph, the horizontal axis plots the volume of production in units of products, and the vertical axis– production costs and income. In this case, variable and fixed costs are set aside separately on the axis. In addition, the graph displays the total costs and revenue from the sale of products.
The construction of the graph is carried out in several stages:
1) it is necessary to select any volume of sales, find the point of variable costs corresponding to this volume, draw a line of variable costs through it and the origin;
2) in order to draw a line of fixed costs, one should mark on the vertical axis a point corresponding to these costs, and draw a line parallel to the horizontal axis;
3) the line of total costs leaves the point on the vertical axis corresponding to these costs and runs parallel to the line of variable costs;
4) to draw a revenue line, you need to find the revenue point corresponding to the selected sales volume, and draw a line through this point and the origin.

Lesion
TS B
thousand
rub.

VC
profit
FC

50 100 pcs.
The break-even point is at the intersection of the revenue and total cost lines.
The volume of production corresponding to the break-even point is called critical. If the production volume is less than the critical one, the company cannot cover the costs with the received proceeds and, therefore, will incur losses as a result. If the volume of production and sales exceeds the critical, then the company makes a profit. The margin of safety shows how far you can reduce the volume of sales before the company begins to operate at a loss. On the graph, the margin of safety corresponds to the area located between the planned volume of production and sales of products and the break-even point.
Disadvantage of the method: price fixing depends on price elasticity of demand, and the break-even chart does not reflect this. Therefore, the firm must analyze all possible options for setting a price before making a final decision.
7. Method of structural analogy
The essence of this method lies in the fact that when setting the price of a new product, the structural formula of the price is determined according to its analogue. To do this, use actual or statistical data on the share of the main elements in the price or cost of a similar product. If it is possible to accurately determine one of the price elements for a new product, for example, material costs according to working drawings, consumption rates, etc., then, transferring the analog structure to new product, you can calculate the estimated price.
For example, the production of a new bearing for a tractor will require material costs of 600 rubles. Since the company produces the same type of products, the price structure of which is almost the same (60% - material costs, 30% - wage, 10% - other expenses), then the possible price of the bearing will be 1000 rubles. (600 rubles: 60% * 100).
In cases where it is important to take into account the quality parameters of products in the price, parametric methods for calculating prices are used. The quotient of dividing the price by the value of the main indicator of the quality of the product characterizes the unit price.

Parametric pricing methods

The basis of parametric pricing methods are formalized quantitative relationships between prices and the main consumer properties of products included in the parametric series.
parametric series- this is a set of products that are homogeneous in design and manufacturing technology, have the same or similar functional purpose and differ from each other in the quantitative level of the main consumer property.
Conditions for applying parametric pricing methods:
1) a wide range of products of the same type, differing in one or more quality parameters;
2) the dependence of consumer demand on the level of product quality, reflected by the quantitative value of the parameters;
3) the ability to compare prices and parameters by buyers.
Scope of parametric pricing methods:
1) determination of costs and project prices at the early stages of designing and constructing new products, when information on the costs of a new product is almost absent or insufficient, and only the main parameters of the future product are known.
2) determination of the compliance of the price level of a new product, calculated on the basis of production costs, with the prevailing market prices, reflecting the qualitative differences between products.
3) forecasting costs and prices.
The advantage of these methods in comparison with cost pricing methods is that the price obtained on the basis of such studies reflects the prevailing market pricing conditions to a greater extent than calculation.
All parametric methods of analysis and determination of costs and prices are based on the processing of statistical data within homogeneous product groups.

Parametric pricing methods
1. Method of specific indicators
It is used to determine prices for small groups of products, which are characterized by the presence of one main parameter, which largely determines the price level.
unit price is the quotient of dividing the price by the value of the main quality parameter for each product of this parametric range.

where P beats - unit price per unit of the main parameter in rubles;
P0 - base unit price in rubles;
N 0 - the value of the main parameter of the basic product.
Then the price of a new product can be defined as
P 1 \u003d P beats * N 1
Usually, the price calculated by this formula serves as the upper level of the price, because when deciding on the price of a new product, the firm seeks to win the fight for the market against competitors as a result of a relative reduction in the price per unit of the main parameter of the new product compared to the base one.
For example, it is necessary to determine the price of a 20 kW electric motor. An electric motor with a power of 20 kW costs 2100 rubles. Then the price of a 20 kW electric motor is:
P1 \u003d (2100/10) * 20 \u003d 4200 rubles.

The ratio between the unit price of a new product and that of an analogue product can be quantified as a drag coefficient.
Braking ratio- a reduction factor used by the firm to make the purchase of a new product more profitable than the purchase of an analogue product. The value of the coefficient is chosen by the company, taking into account the following factors:
- the severity of competition,
- brand awareness and company image,
- marketing policy of the enterprise.
The method of specific pricing can be applied only in the case of a clear dominance of the value of one parameter over the others and the invariance of the remaining parameters (or their equality for the compared products), i.e. when selling goods with a simple design.
The disadvantage of the method is that it does not take into account other consumer properties of the product, ignores the behavioral reactions of buyers, supply and demand. In the practice of selling complex products and services, it should be borne in mind that their assessment of their quality is a complex characteristic that reflects the values ​​of a number of consumer properties.
When changing not only the main, but also secondary properties, it is recommended to modify the formula discussed above:

P n \u003d P beats * Q g + D

where P n- the price of a new product;
P oud is the initial unit price determined per unit of the main parameter;
Q G- the quantitative value of the main parameter of the new product;
D- additional payments (discounts), reflecting the change in other consumer properties of the new product.
In fact, both formulas discussed above do not reflect the preferences of buyers, but only a change in qualitative parameters. In practice, buyers may ambiguously assess the importance (necessity, urgency, significance) of changing individual parameters. In this case, more correct calculations of the price of a new product can be obtained on the basis of points or index methods.
2. Point method
The essence of the method is that, based on expert assessments of the significance of product parameters for consumers, each parameter is assigned a certain number of points, the summation of which gives a kind of integral assessment of the competitiveness of the product in terms of quality parameters. By multiplying the sum of points for a new product by the cost estimate of one point, an analogue product, the estimated price of a new product is determined.
The price of a new product is calculated as follows:
1) Calculates the price of 1 point:
P points =
P 0 - the price of the base product
N i0 - score i-th parameter of the base product
V i - weight i-th parameter.
2) The estimated price of a new product is determined:
P 1 \u003d? (N i1 * V i) * P points or
P 1 =
N i0 - score i-th parameter of the new product
P 1 \u003d \u003d 147,000 rubles.

The effectiveness of the method depends on the professionalism of experts and the validity of expert assessments.
The number of indicators evaluated by points should be limited and at the same time fully characterize the consumer quality of products. The limitation of the number of evaluated indicators is due to the fact that with a large number of indicators, a relatively smaller specific gravity occupies each of them and, as a result, the significance of improving each specific indicator is underestimated. A product may score well on the total score even if it has a very low quality level on any particular most important indicator.
The scoring method is used to justify prices for products of the watch, radio engineering, optical-mechanical industries, perfumes and cosmetics, wines, animal oils, cheeses, etc. Unlike the index method, the scoring method allows you to compare quality indicators (design, country of origin, color) .
3. Method of regression analysis
It is used to determine the dependence of price changes on changes in the technical and economic parameters of products related to a given parametric range, and to equalize value ratios for similar products of different quality. The price in this case acts as a function of many consumer parameters:
P 1 \u003d f (x 1, x 2, ..., x n)
where х 1 , х 2 ,…, x n – parameters of consumer properties of the product.
The quantitative relationship between changes in the resultant attribute - price and factor signs - quality parameters is based on one of the methods of regression analysis. The choice of method is determined depending on the characteristics of the parametric series of a given type of product or service. In this case, various regression equations.
1) Linear regression equation:
at= a 0 + ?a i*X i
2) Power equation of regression:
y= and 0*? X i n i
3) Parabolic regression equation:
at= a 0 + ?a i*X i+ ?b i*X i
and other equations.

Example, suppose that the regression equation for the price of a centrifugal pump is BUT from technical and economic parameters has the following form:
R BUT = 390,65 + 204,68 X BUT ,
where X BUT – water supply by a centrifugal pump in m 3 / hour.
This equation linear type, figures calculated by experts. Determine the estimated price of pump B, which has X AT= 360 m 3 / hour.
R AT \u003d 390.65 + 204.68 * 360 \u003d 74075.45 rubles.
4. Index method
The index method can be applied when the parameters of the compared products are quantitatively measurable (speed of rotation, volume, area, etc.), the scoring method is recommended if the system of indicators characterizing the quality of the compared goods (services) also contains characteristics that are not quantitatively measured (prestige , color, convenience).
P n \u003d P a * ? (J j * K weight j)
where P n- the price of a new product;
P a- the price of an analogue product;
J j– change index j-th parameter of a new product in comparison with an analogue product;
K weightj- weight coefficient j-th parameter.
Expert assessments (rank correlation method, pair comparison method, etc.) can be used to assess the significance of product parameters for buyers and, accordingly, the possible boundaries of price changes.
5 Aggregate method
The method consists in summing up the costs or prices of individual structural parts or units of the product with the addition of the cost of original units (parts), assembly costs and standard profit. This method is used when a new product consists of different combinations of main structural elements (assemblies, components), the prices of which are known, and the total price or total production costs are calculated as the sum of the costs (prices) of individual structural elements or are determined by summing (subtracting) prices or costs of added or replaced elements (assemblies, components).

Market pricing methods

This group of methods takes into account the competitive advantages of goods and manufacturing enterprises. Methods are used as part of a pricing strategy focused on a certain combination of price and quality of goods.
Applying such methods, enterprises proceed from the willingness of the consumer to pay a certain price (the upper limit of prices). Consumers set a certain limit (imagining a maximum price) beyond which demand for a product will cease, either because of financial constraints or because a better product can be purchased at that price.
Market methods include:
1. Setting prices based on current price levels
etc.................

To external pricing Factors include factors beyond the firm's control over which the firm cannot influence.

External factors can be conditionally divided into two groups: external factors due to national conditions, and external factors associated with the international economy.

External factors caused by the national economy:

§ state regulation of prices, which consists in: establishing rigid prices for certain types of goods and services in various sectors of the economy; in the formation of the state pricing policy; in applying the system of maximum and minimum prices; in determining the thresholds and boundaries of price changes;

§ development and application of state tax, monetary and depreciation policies;

§ use of the system customs duties for import and export goods:

§ establishment of a minimum wage;

§ implementation of antimonopoly policy;

§ inflationary processes;

§ the level of well-being of the people;

§ tastes and preferences of consumers, etc. External factors related to the global economy:

§ changes in world prices (prices on world commodity markets);

§ changes in exchange rates;

§ conjuncture of world commodity and stock markets:

§ the use of prohibitions and restrictions in foreign trade of various countries, etc.

Under the influence of these internal and external factors, prices for goods and services within the country are formed.

5. Causes of multiple prices in international trade

Plurality of world prices - the presence of a number of prices for the same product in the same sphere of circulation (import, wholesale, retail prices); the presence of different prices for goods of the same quality in approximately equal quantities on the same transport or freight base.

The multiplicity of world prices is a consequence of:

firstly, the policy of monopolies, establishing a system of prices, differentiated by markets, categories of buyers;

secondly, state policy (trade and monetary);

thirdly, non-commercial and other special operations carried out by government organizations.

In addition, the reason for the multiplicity of prices is protectionism: if for some commodities world prices are determined by the price level of exporting countries, for others - by the price level of importing countries, for others - by the price level of stock exchanges, auctions and other international trade centers, then in determining prices finished products world prices are determined taking into account the prices of leading firms. Customs barriers, special trade-political and currency zones create prerequisites for differentiating prices for the same goods in international trade (6, p. 27).

The monopolization of the domestic market of individual countries, as well as foreign markets by international trusts, concerns and cartels, agreements on the division of markets, the participation in trade of various governmental and semi-governmental organizations - all this, along with the corresponding trade, political and currency conditions, leads to the appearance on the world capitalist market of various prices for the same goods. The efforts of state-monopoly capitalism have a significant impact on international trade, on the level and dynamics of export and import prices. Provision of international state loans and credits, provision of “aid” by imperialist states to other countries, implementation of special government programs, export of goods to state-monopoly organizations in order to sell domestic “surplus” agricultural products, large government purchases of imported goods to create strategic reserves and other similar measures have the effect of carrying out foreign trade transactions at special prices due to the very nature of these agreements, different from ordinary commercial transactions.

6. Measures of state influence on foreign trade prices
State intervention in pricing is carried out by way of overstatement of production costs, sanctioned by government agencies, through the inclusion of inflated depreciation write-offs and deductions to other funds in the cost price. As a result, in entire industries, a situation arises when "costs support the price", i.e. the estimated (rather than actual) costs of production, as a result of government incentives, turn out to be so high in all enterprises that price increases become a matter of course, and since incentives apply to the entire industry, intra-industry competition in favorable conditions cannot be a sufficient obstacle to price increases.

Direct state intervention in the pricing process is the state policy of setting prices for so-called excisable goods. Government subsidies have a direct impact on price formation. One of the types of such subsidies - price - provides for price reduction through special additional payments to the producer or consumer.

The direct impact on prices and price leadership takes place in industries where the state's share in the consumption of goods and services is significant, for example, in the military industries, in a number of construction sub-sectors.

Government bodies, being regular buyers or customers of certain types of goods and services from private firms, establish "contract prices" by agreement with partners, which then become the base for the industry. An effective means of price regulation is VAT. Producers include this tax in the price of a good or service, and differentiated changes in the rates of this tax directly affect prices.

A special direction of the state economic policy is the state influence on foreign trade prices. State promotion of exports, exemption of exporters from taxes (tax refunds), and in some countries export subsidies, provision of concessional loans and transport tariffs significantly affect the conditions of price competition in the world market.
Currently, a fairly wide range of forms and methods of state price regulation is used, which can be divided into direct and indirect. With the help of direct methods, the state directly affects the order, methods of determining and the level of prices. These include: a more regulated procedure for determining costs and profit margins, blocking price increases, setting upper and lower price limits, limiting profit margins, mandatory price reductions when prices for raw materials are reduced, various kinds of subsidies, changing the level of customs duties on exported and imported products. Indirect methods include methods by which the state regulates the behavior of objects involved in the pricing process, but does not dictate the procedure itself, methods for determining prices and its level. Such methods underlie various regulations aimed at creating a competitive environment: antitrust and antimonopoly legislation, various agreements between the state and entrepreneurs on a "reasonable" price policy; acts on price discrimination, prices and advertising. This also includes declaring prices, changing tax rates depending on the price, making investments in order to reduce costs and prices in state-owned enterprises. At the same time, the state also uses such indirect methods as "intervention prices", "maintenance prices", the introduction of quantitative restrictions on imports, the establishment of "recommendation" prices, purchases and buffer stocks during price declines and the sale of goods from stocks during periods price increases, etc.

7. Price information system
The price system is a single, ordered set of different types of prices that serve and regulate economic relations between various participants of the national and world markets. There are the following price differentiation:

♦ by sectors and service sectors of the economy; by the degree of state participation in the pricing process; by stages of pricing; on the transport component; by the nature of the price information.

Differentiation of prices by industries and service sectors of the economy is based on taking into account the characteristics individual industries national economy and includes the following types prices:

Wholesale prices for industrial products - prices at which industrial products is sold to all categories of consumers, except for the population, regardless of the form of ownership; purchase prices for products Agriculture- these are the prices at which agricultural products are sold by collective farms, state farms, farms and the population (products of private farms); prices for construction products - represent either estimated cost object (the maximum amount of costs for the construction of each object), or the average estimated cost of a unit of the final product of a typical construction object (for 1 m2 of living space, 1 m2 of painting work, etc.); freight and passenger transport tariffs - payment for the movement of goods and passengers, which is collected by transport organizations from the senders of goods and the population; prices for consumer goods - used to sell goods in retail trading network population, enterprises and organizations; tariffs for services - a system of rates at which service enterprises sell them to consumers.

In addition, a distinction is made between export and import prices.

Export prices- these are the prices at which producers or foreign trade organizations sell domestic goods (services) on the world market. Import prices are the prices at which firms purchase goods (services) abroad. Prices for imported products are set on the basis of the customs value of the imported goods, taking into account customs import duties, the exchange rate, and the costs of selling this product within the country. At the same time, in the structure of import prices, a significant place is occupied by indirect taxes - excise and value added tax.

Differentiation of prices according to the degree of state participation in the pricing process includes the following types of prices:

Market price - the price that develops in the market in the process of relations between pricing entities under the influence of the market situation. Market prices according to the conditions of their funding are divided into free, monopoly and dumping; regulated price - the price that develops on the market in the process of direct state influence. According to the conditions of their formation, regulated prices are divided into fixed and marginal.

Differentiation of prices by stages of pricing reflects the quantitative relationship of prices that develop as the goods (services) move from the producer to the final consumer. The price at each previous stage of the movement of goods is an integral element of the price of the next stage. Distinguish Wholesale prices manufacturer, selling wholesale prices, wholesale purchase prices and retail prices.

8. Influence of factors of external and internal environment on pricing processes

Pricing decisions are influenced by FACTORS both internal and external to the company. These factors form certain boundaries within which a firm can operate when setting prices for its products.

9. Choice of sources of price information

Customs officials select price sources that contain the most recent and documented information about prices for analogue goods that compete with imported goods, as well as information about the terms of sale of these goods on the world market. Moreover, information about the conjuncture of the relevant market and trends in its change can also be attributed to price information.
The most priority price information, in terms of the reliability and relevance of prices, are commercial documents (contracts and invoices) for previously made deliveries, found using the "Monitoring-Analysis" system and received at the request of the customs authorities. Important information can be considered the data of exchange quotations, reference prices, prices of auctions, trades, offers of firms, catalogs, price lists. As additional information it is also advisable to use the prices of foreign trade statistics, data from well-known firms and organizations. To improve the reliability and reliability of the information used, it is advisable to use at least two or three sources for the analysis of exceptions in the calculations of the subjective factor.
At the third stage of the customs value control algorithm, the selected price information is brought into a form comparable with the terms of the transaction being checked. At this stage, if necessary officials carry out the adjustment of the selected price information, taking into account differences in additional charges between the product being valued and the price information.
Depending on conditions foreign trade contract for the purchase and sale of the goods being checked, additional costs may be added to the price information, in addition, deductions are made to bring this information to the commercial terms of the transaction. At this stage of the algorithm, the price information that has been adjusted receives a new status - a test value. The benchmark (derived from price information) is the unit price of a product similar to the product being valued, adjusted for differences in commercial terms sales, additional accruals and deductions.
At the fourth stage, the value of the customs value of the goods declared by the declarant is compared and analyzed with the verification value (corrected price information). Such a check consists in clarifying additional circumstances of the transaction in question and the conditions for the sale of goods that affect the discrepancy between the value of the customs value of the goods and the price information available in the customs authority, as well as obtaining explanations regarding the identified signs of unreliability of the declared information on the customs value of goods.
The considered algorithm for controlling the customs value when assessing the reliability of the declared customs value using price information should contribute to the development of recommendations on the application of methods for adjusting price information and amending price information. Amendments should be made by consistently bringing the selected price information on the terms of sale of goods and their technical specifications to the conditions and characteristics of the product being evaluated, taken as a standard.

10. Prices of international exchanges, trades, auctions
Exchange prices- prices for transactions concluded using the services of a special intermediary - the stock exchange. The peculiarity of the exchange commodity market is determined by the following main features: exchange goods are mass standard goods, therefore transactions are regular, there are many sellers and buyers, i.e. the exchange market is a competitive market that does not require government intervention. As a result, exchange prices are considered the most objective price information.

Auction prices- prices reflecting the course of sales at auctions. In the classical sense, an auction is a seller's market. Classic auction goods are non-standard, demand for them usually exceeds supply, so the auction is characterized by an upward trend in prices.

Within the framework of the auction, there are:

§ the starting price at which the beginning of trading is announced;

§ the price of the auction step, i.e., the intermediate price that exceeds the starting price and is announced by the potential buyer;

§ the price of the actual sale, which exceeds the starting price by the sum of the prices of the auction steps.

Auction prices inform market participants about the possibilities of buying or selling goods at auction. Auction bidding begins with the announcement of the batch number of the goods (lot) and the starting price. The final price of the previous auction can be taken as the starting price. The starting price level contains information about the cost and quality of the goods, the balance of power between sellers and buyers, and the technique of bidding. The more often auctions are held, the smaller the price gaps. This is due to minor changes in production costs and market conditions over time. Usually, the actual sale of goods at auction is carried out at the maximum price offered by the buyer. Auction prices play a key role in the markets for furs, gems and antiques.

Bid prices(tender prices) - prices for a specialized form of trade based on the issuance of orders for the supply of goods or the delivery of contracts for certain work.

Classic bidding (tender) is a buyer-customer market, in response to the application of which proposals (offers) are received from potential sellers (offers). The general trend of price development here is downward: other things being equal, the customer prefers a cheaper offer. Unlike auctions, bidding is more closed and limited. Bidding prices are, as a rule, the object of state intervention, since a significant proportion of orders and contracts are regulated by rules established by the state.

The price information of auctions and tenders comes mostly irregularly.

Price is the most complicated integral of the modern economy. At first glance, the price is simple. The following price definitions are still classic: price is the monetary expression of value; price is cost plus profit.

It would seem that everything is simple, but this simplicity is deceptive. According to a number of well-known economists, price reform is the most difficult and dangerous moment in economic transformations. The expression "the price of reforms is the reform of prices" became winged.

The complexity of price and pricing lies in the fact that price is a market category. And "conjuncture" comes from the Latin word "connect, connect." This is a linkage, the relationship of economic, political, psychological, social factors. The influence of these factors on the development of the market is different, it is constantly changing. Price is the focus at which the force fields of market conditions converge. Today, the price may be determined by the cost factor, and tomorrow its level may depend on the psychology of the behavior of buyers. The color of the price, like a litmus, depends on the situation, the health of the economy. This is the price phenomenon.

The complexity of modern pricing lies in its multidimensionality. The planetary price system includes at least five blocks.

In modern pricing, there is a change in the proportion between theoretical and practical issues in favor of the latter. At the same time, in practice, the more successful the solution of specific issues, the larger their assessment.

The interpretation of price as an economic category is the more accurate, the more precisely the tasks, price functions and price-forming factors are defined in given economic conditions.

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

1. covering the costs of production and ensuring profits sufficient for the normal functioning of the manufacturer;
2. taking into account the interchangeability of products in the formation of prices;
3. solution of social issues;
4. implementation of environmental policy;
5. solution of foreign policy issues.

Covering the costs of production and ensuring profits is a requirement of the seller-manufacturer and intermediary. The more favorable the market situation for the manufacturer, that is, the higher the price he can sell his products, the more profit he will receive.

The second task - taking into account the interchangeability of products - is the main requirement of the consumer. He is not interested in what the costs of manufacturing a given product are. If the same product is offered on the market at different prices, the consumer will naturally prefer the one offered at the lower price. If a higher quality product and a lower quality product are offered at the same price, the consumer will prefer the higher quality product.

The remaining tasks (from the third to the fifth) arose already at the present stage of pricing, it is especially important to solve them as we move from an undeveloped, spontaneous market to a regulated market.

In the conditions of a developed market, the balance of the economy is achieved not so much with the help of a spontaneous regulator, but rather through the implementation of a state policy designed to express national interests.

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 are, in fact, national issues. Therefore, in the absence of a body representing national interests, the above issues, in principle, cannot be resolved.

The main price leverage in resolving foreign policy issues is the supply at preferential prices or the purchase at inflated prices of products for countries that are favored by the policy.

Social pricing policy (the third task) in all countries manifests itself mainly in the freezing or relative reduction (increasing compared to prices for other goods to a much lesser extent) in prices for goods of increased social importance (children's goods, medicines, essential foodstuffs and etc.).

To stimulate the production of modern (from a national standpoint) means of production, the state develops and implements a system of incentive prices (removing upper price limits, setting 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 high producer prices and relatively low consumer prices is often subsidized by the state.

An example of the use of price levers in the framework of environmental policy (fourth task) is the resolution of the problem of improving the processing of raw materials, processing and disposal of waste with the help of prices. At the same time, the most important issues are the assessment of secondary resources, waste and products of their processing.

Price functions are closely related to pricing tasks. Price functions- these are the most general properties that are objectively inherent in prices and are characteristic of any kind of prices. The most widespread point of view in the economic literature is that the price has four functions: accounting, redistributive, stimulating, the function of balancing supply and demand.

Pricing Factors- these are the conditions in which the price structure and level are formed. All types and types of pricing factors, as economic practice shows, can be divided into three main groups:

1. basic (non-opportunistic);
2. opportunistic;
3. regulatory related to public policy.

Basic (non-opportunistic) factors predetermine a relatively high stability in the development of price indicators. The effect of this group of factors is different in different types of markets. Thus, in the conditions of the commodity market, non-opportunistic factors are considered intra-production, costly, cost, since the movement of prices under the influence of only these factors is unidirectional with the movement of costs.

The action of market factors is explained by the volatility of the market and depends on political conditions, the influence of fashion, consumer preferences, etc.

Regulatory factors are the more obvious, the more active the intervention of the state in the economy. Price restrictions on the part of the state may be advisory or rigid administrative in nature.

As the market develops and becomes more and more saturated with goods and services, the role of market factors increases. Currently, there are types of markets and groups of goods (for example, land and securities), in respect of which only market factors are used. They are evaluated indirectly through comparison with the value of interchangeable goods.

In a modern economy, prices mediate all stages of production, thus representing a single price system. The subordination of the stages of social reproduction is the basis for the internal interconnection of prices within a single system.

Price system- this is a single, ordered set of different types of prices that serve and regulate the economic relations of market participants.

A change in the level, structure of one type of prices entails a change in other types of prices, which is due to the relationship between the elements of the market mechanism and market entities. Each block of prices and each individual price, being part of the price system, bears a strictly defined economic burden. In the modern pricing environment, there are different pricing systems that are formed depending on the features and scale of servicing modern markets.

There are various types of prices and price groupings according to the service sector of the national economy, as well as according to the degree of rigidity of their regulation by the state.

For example, the grouping of prices by the service sector of the national economy includes such a category as tariffs - prices for goods of a special kind - services. The peculiarity of the service is that it does not have a specific material form. In this regard, the buyer at the time of purchasing the service does not have the opportunity to get a complete picture of its quality. The buyer judges the purchased service according to the information about the service seller. When providing a service, the moment of production, as a rule, coincides with the moment of consumption, that is, there is no need for an intermediary. This determines the features of the assessment of services and explains the existence of the concept of "tariffs for services", although it is more correct to use the concept of "prices for services".

Depending on the service sector, there are wholesale tariffs (tariffs for freight transport, communications and other services for legal entities) and retail tariffs, that is, tariffs for services for the population.

In the grouping of prices according to the degree of rigidity of regulation by the state, market (free) and regulated prices are distinguished.

Market (free) prices are prices free from direct government price intervention. At the same time, they are not free from the action of other levers that do not directly affect the level and structure of prices. Thus, the development of prices depends on the income tax. Progressive income tax rates make it unprofitable for the seller to increase prices, but these prices are correctly called free or market prices, since there is no direct restriction on them. At the same time, as world practice shows, the scale of free pricing is inversely proportional to the degree of general government intervention in the economy.

Pricing Factors

The whole variety of factors affecting the formation of prices in the modern economy can be divided into three groups:

• o basic (non-opportunistic);
• o opportunistic;
• o regulatory.

Basic factors in commodity market conditions are different costs - in-house and non-production. The change in prices under the influence of these costs occurs in the same direction as the change in costs.

market factors are a consequence of market volatility and depend on macroeconomic conditions, consumer demand, etc.

Regulatory factors determined by the degree of government intervention in the economy.

In addition, the factors that determine price fluctuations up or down from the value of the goods are divided into domestic and external. Internal factors depend on the manufacturer, its management and team. External, as a rule, do not depend on the enterprise.

The cumulative effect of these factors ultimately leads to the establishment of prices that ensure the balance of economic activity.

Process and pricing principles

Pricing Process - is the setting of a price for a particular product. It consists of six stages (see Figure 4.18).

The decision to establish a particular price for a product is largely determined by external factors in relation to the enterprise. In some cases, these reasons significantly reduce the freedom of the enterprise in setting prices, in others they do not have a noticeable effect on the freedom of pricing, in the third, they significantly expand this freedom.

The main principles of pricing are:

o scientific validity of prices - the need to take into account objective economic laws in pricing. The scientific validity of the prices set is facilitated by the careful collection and analysis of information regarding

Rice. 4.18.

in relation to current prices, cost levels, the ratio of supply and demand, and other market factors;

• o the principle of price targeting - the enterprise must determine what specific economic and social problems it will solve as a result of using the chosen approach to pricing;
• o the principle of continuity of the pricing process. According to this principle, products at each stage of its manufacture have their own price. In addition, in real market situation constant changes are made to the level of prices in the market;
• o the principle of unity of the process of pricing and control over compliance with prices. The purpose of control is to verify the correct application established by law pricing rules.

Pricing Strategies - this is the choice by the enterprise of the possible dynamics of changes in the initial price of goods in market conditions, which best suits the purpose of the enterprise. The pricing strategy will depend on which product the company sets the price for: a new one or an existing one on the market.

Strategies for setting prices for new products. First, you can set the highest possible price for a new product, focusing on people with high incomes or those for whom the price factor is not the main factor, but consumer properties and quality characteristics of the product are important. When the initial demand, and with it the sales, increase at the expense of the segment of people with average incomes, the demand will decrease somewhat, lowering the price again. Then you can make your product available for mass consumption.

Thus, the strategy will be to consistently step-by-step coverage of various profitable market segments. This strategy has been called in the literature cream skimming strategy. The enterprises that have chosen it are more focused on short-term goals (quick financial success) than on long-term goals (ensuring such success in the future).

If the goods of the enterprise begin to be produced by competitors, you can start introduction of a new product with a low price. This strategy will allow the company to gain a certain market share, prevent competitors from entering the industry and force out outsiders, increase sales and take a dominant position in the market. Further, if the danger of the introduction of competitors does not decrease, it is possible, by reducing costs, to lower prices even more, or, by improving the quality and increasing the costs of scientific and technical development, to raise prices, securing leadership in terms of quality indicators. If there is no danger of competition, you can raise or lower the price in accordance with demand. However, one rule must be remembered: when implementing a strategy, it is possible to increase the price only if there is confidence that the product is recognized by the consumer, recognizable by him.

A strategy focused more on long-term goals is called sustainable implementation strategy.

Two main types can be distinguished pricing strategies for existing products:

• o setting a moving falling price;
• o preferential price strategy.

Trailing Falling Price Strategy is a logical extension of the "cream skimming" strategy and is effective under the same conditions. It is used when the company is reliably insured against competition. The bottom line is that the price consistently slides along the demand curve, i.e. varies according to supply and demand.

Preferential price strategy - continuation of the solid implementation strategy. It is used when there is a danger of intrusion of competitors into the area of ​​activity of the enterprise. The essence of this strategy is to achieve an advantage over competitors (real or potential) in terms of costs (the price is set below the prices of competitors) or in quality (the price is set above the prices of competitors so that the product is evaluated as prestigious, unique).

In general, the price is the most important factor, stimulating or discouraging sales, influencing the development of production, its efficiency, influencing competitors.

The price is one of the elements of the marketing mix, so it is determined taking into account the choice of strategies relative to other elements of the marketing mix.

Prices are affected by internal factors (goals of organization and marketing, strategies in relation to individual elements of the marketing mix, costs, pricing) and external (type of market; assessment of the relationship between the price and value of the product, carried out by the consumer; competition; economic situation; possible reaction of intermediaries; government regulation).

Possible common goals of the enterprise, influencing the pricing policy, are the goals of survival and development. As the goals of marketing activities, one can consider obtaining an acceptable amount of profit, increasing market share, leadership in the field of product quality.

As F. Kotler notes, good pricing begins with identifying needs and assessing the relationship between price and product value. Each price determines a different amount of demand, which characterizes the consumer's response to the market offer. The dependence of price on the magnitude of demand is described using the demand curve. Demand curve shows how much of a product will be bought in a certain market for a fixed period of time when different levels prices for this product. In most cases (but not always), the higher the price, the lower the demand (an exception, for example, is the demand for prestige goods). To determine the degree of sensitivity of demand to price changes, an indicator of its price elasticity is used, defined as the ratio of the percentage change in the quantity demanded to the percentage change in price.

In general elasticity of demand - it is the dependence of its change on any market factor. Distinguish between price elasticity of demand and income elasticity of demand. On fig. 4.19 shows two demand curves, and an increase in price from C (to C (curve "a") leads to a relatively weak drop in demand (from C to C ^). In this case, demand is said to be inelastic. An increase in price on curve "b" leads to a significant increase in demand - this is elastic demand. The degree of elasticity of demand for price changes characterizes price elasticity of demand, defined as the ratio of the percentage change in quantity demanded to the percentage change in price. For example, with a price increase of 2%, demand fell by 10% - this means that the demand elasticity coefficient is -5 (a minus sign means an inverse relationship between price and demand).

This coefficient is usually, although not always, negative. From a practical point of view, if a decrease in price causes such an increase in sales and turnover that the losses from low prices are more than compensated, the demand qualifies as elastic, if not, this is evidence of inelastic demand; a situation where price changes do not affect either demand or supply in any way is a sure sign of the absence of market relations.

F. Kotler identifies three approaches to determining basic, initial prices: based on costs, on the opinion of buyers and on competitor prices.

The simplest method of determining a price based on costs is to establish them on the basis of a simple addition to the cost of a product of certain margins that characterize the costs, taxes and profit margins on the way the product moves from the producer to the consumer.