Pricing methods - economic methods for determining prices. It is well known that goods are produced only for the purpose of their subsequent sale. In this case, the sale of goods should bring a certain profit to the manufacturer, which would allow the business to develop. But if so, then the price of the goods determines whether consumers will buy it, and if they buy, then will there be sufficient profit. That is why manufacturers pay special attention to pricing and those pricing methods with which it is carried out. Pricing methods are quite diverse, but the main ones will be considered in this article.
First of all, the pricing methods in a market economy include the full cost method. In order to determine the price using this pricing method, it is necessary to take into account all the costs of producing the goods. Such costs include the cost of fixed and variable capital, which was spent on the production of a unit of output. In other words, it is necessary to add the cost of raw materials, equipment, as well as the cost of labor. Further, it is necessary to add the profit margin to the resulting amount. The determination of such a rate of return is one of the most important and complex issues. As a rule, the average rate of profit is taken , which is received by enterprises operating in the country's economy. So, for example, if the cost of all costs is one hundred rubles, and the rate of return is twenty percent, then the price of a unit of goods will be one hundred and twenty rubles.
Pricing methods can be quite complex, such as the method of return on investment. The convenience of this method is that it takes into account the credit resources that the company has. In the modern economy, an increasing number of enterprises receive loans from banks for development, that is, investments. Therefore, it is extremely important for the company to take into account the interest that it will be forced to return to the bank in the price of the goods. In this case, of course, other costs are taken into account. So, for example, if the cost of all costs will be, as in the example above, one hundred rubles, but at the same time the company will be forced to pay one percent in terms of unit of loan to repay the loan, then the price of the goods will be one hundred and one ruble.
Pricing methods in a market economy include marketing estimates. This method is based on the study of whether consumers are ready to buy goods at a lower or higher price than from other manufacturers, as well as assessing the profitability of the company to reduce or increase prices. So, if, despite the price reduction, say one ruble, the company's profit increases, then this decrease can be considered reasonable. If, with an increase in the price, the profit for the same ruble decreases, this indicates the inadmissibility of a change in price. Such a study allows for a more flexible pricing policy, which may positively affect the profitability of the enterprise.
All pricing methods, the economic basis of which is profit, are designed to study the real situation on the market. So, some enterprises do not conduct independent price calculations, focusing on the average price in this matter. At the same time, the enterprise can only monitor so that the level of production costs remains at a level sufficient to generate profit. That is why pricing begins with an analysis of the current situation with prices. Only after this, the company evaluates how profitable it will follow these prices. It is important to remember that enterprises are often willing to sacrifice profits in order to conquer a new market or increase recognition. This situation is characteristic of dumping "wars."