The organization's pricing policy is the definition of the principles and methods of pricing to achieve the strategic and tactical goals of the organization. See how to develop a pricing policy using the example of a company.

Pricing policy is ...

Any enterprise works with the aim of making a profit through the sale of goods or services. The cost of the product sold is a key factor that affects the success of the sale. The pricing system in the company is the pricing policy of the company. It defines:

• the effectiveness of the company's current prices;
• compliance of prices and discounts with marketing policy;
• compliance with the rules for setting prices for new products and for new buyers;
• the procedure for changing prices;
• validity of discounts;
• deviations in company prices for the same product and their reasons.

Stages of developing a pricing policy

Let's consider step by step what needs to be done to develop a pricing policy.

Step 1. Determine the price range

First of all, it is necessary to outline the range of prices that an enterprise, in principle, can set for its products. After all, from below the cost is propped up by costs and prime cost, competitors are squeezing on the sides, and from above is the consumer assessment and the buyer's ability to pay. Therefore, to analyze and assess the possible range of prices, it is necessary for the entire range of goods, even if there are tens of thousands of them, to put down the cost price (), the weighted average price of competitors; "Optimal buyer's price" and own current prices (see Figure 1).

Figure 1. Price circle

Step 2. Establish the optimal buyer's price

To establish the optimal buyer's price, the widely used method of measuring the consumer's sensitivity to price PSM (Price Sensitivity Meter) can be used. The essence of this method is to survey the target group of consumers of the products under study.

Shoppers are asked four questions:

1. At what cost will you buy this product and decide that you have made a bargain purchase? (Cheap.)

2. At what cost do you think this product is more expensive than it should be, but will you buy it anyway? (Expensive.)

3. Starting at what cost will you decide that this product is too expensive and will not buy it? (Too expensive.)

4. Starting at what cost, you decide that it is too cheap and will not purchase this product? (Too cheap.)

The respondents' data is entered into a table and a corresponding graph is formed:

• the intersection of the “cheap” and “expensive” curves gives the normal perceived price point (IPP);
• the curves “too cheap” and “too expensive” give the point of marginal cheapness (PMC);
• the intersection of “too expensive” and “cheap” gives the point of marginal cost (PME);
• the intersection of the “too expensive” and “too cheap” curves is the OPP.

The pricing policy of the enterprise is an example. We will illustrate the establishment of the optimal price using the example of a marketing study of tea, which was carried out at the Tambov State Technical University in 2015. Studies were conducted for the brands of tea: Ahmad Tea, Beseda, Curtis, Maisky, Lipton, Tess, Greenfield, Lisma, Brooke Bond and Akbar (see Figure 2).

On this chart, OPP is the optimal price point - 110 rubles. for 100 gr. average tea. At the same time, each unit from the nomenclature of a specific brand has its own OPP and for each PSM analysis must be carried out.

On the eve of the budget layout, double-check the company's pricing policy. Learn how a sales service sets and changes prices for customers, how it calculates discounts or bonuses for customers.

Picture 2. Tea Price Marketing Research

What to check in the pricing policy for the CFO

The commercial service is responsible for the pricing policy of the company. The CFO's job is to ensure that the mark-up is calculated against the desired rate of return, and that discounts and bonuses to customers have ceilings. See which pricing provisions to pay attention to and when to adjust them.

Step 3. Determine the weighted average prices of competitors

To determine the weighted average prices of competitors, you need to know their sales volumes (). The same information is needed to determine its market share relative to its main competitors. Since, as a rule, this kind of information is closed and difficult to access, sales volumes can be replaced by the frequency with which products are found at points of sale: at distributors, wholesalers and stores. The products of the main players are most widely represented at all points, respectively, you can limit yourself to the most popular brands, discarding the uncommon ones.

Products need to be compared according to the main most similar parameters. Moreover, if there is no direct analogue, you can put down the cost of the substitute product. For example, you cannot compare extension cords of one and ten meters - they have different consumer properties, but you can replace the "tee" with an extension cord with three sockets a meter long, since they perform the same task.

An example of determining competitors' prices when developing a company's pricing policy. Let's illustrate the cost of the main brands of tea in the department stores of the city of Tambov (table 1).

Table 1.Analysis of the cost of tea in various stores

How to evaluate the effectiveness of pricing policy

The sales force is often ready to provide key customers with any discounts, especially if sales are falling. If such initiatives are not limited in time, they can result in serious losses for the company. The effectiveness of the company's pricing policy can be assessed by the extent to which the proceeds compensate for the costs of sales.

Step 4. Price analysis

Now it is necessary to bring into a single table the optimal prices of consumers, competitors, current own prices and prime cost. Suppose we have a chain of grocery stores "Prodmag".

table 2. Optimal consumer prices, current and cost

As can be seen from the table, the prices of competitors for tea are generally slightly lower than the optimal consumer prices. This indicates a high level of competition in the market. Because of the tough competition, 2-3 players are enough to start reducing the price, as all the others reduce the price afterwards.

On the other hand, the price of tea in our Prodmag network is slightly higher than that of competitors, which, all other things being equal, draws buyers from our chains to them. And then the question of pricing strategy arises.

Step 5. Choosing a pricing and competitive strategy

The choice is not so great: the cost relative to competitors can be made lower, higher, market average or different for different target groups. The cost depends on the consumer properties of the product. If the set of such properties is minimal, then the price should also be low. If it is higher than the market, this should be justified either by the service, or by the quality of the products, or by a powerful advertising campaign, or by the specifics of the product, new technologies, etc.

In addition, prices can be set directly, or they can be disguised using discounts or trading promotions.

The choice of pricing policy depends on the target group of buyers, resource capabilities of the company, products and competitive strategy enterprises, the main types of which on the domestic market are five:

1. Cost leadership.
2. Product leadership.
3. Service leadership.
4. Price differentiation.
5. Leadership in advertising.

The sixth is an administrative resource, but in this article it will not be considered .

Cost leadership

Cost leadership implies the company's focus on cost and price reduction through process optimization, getting rid of all that is superfluous, mass production or obtaining the main profit not at the expense of a margin, but at the expense of trade turnover.

In our example, lower prices could be assigned through a system of discounts or promotions: "3 teas for the price of 2", which actually corresponds to a 30% reduction in price.

Price in a market economy is one of the most important factors determining the profitability of an enterprise. Therefore, the pricing policy must be well thought out and justified. Pricing policy is the general goals that the company is going to achieve with the prices of its products, and the system of measures aimed at this. To correctly formulate a pricing policy, a firm must clearly understand the goals that it will achieve by selling a particular product. When choosing a pricing policy, it should also be borne in mind that although the global goal of any enterprise is to make a profit, however, as intermediate goals, such goals as protecting their interests, suppressing competitors, conquering new markets, entering the market with a new product, and quick cost recovery can be put forward. , income stabilization. Moreover, the achievement of these goals is possible in the short, medium and long term.

The main objectives of the pricing policy are as follows:

1. Further existence of the enterprise. An enterprise may have excess capacity, there are many manufacturers on the market, intense competition is observed, demand and consumer preferences have changed. In such cases, in order to continue production, liquidate stocks, enterprises often reduce prices. In this case, profit loses its meaning. As long as the price covers at least variable and part of fixed costs, production can continue. However, the question of enterprise survival can be viewed as a short-term goal.

2. Short-term profit maximization. Many businesses want to set a price for their product that would provide the maximum profit. In the implementation of this goal, the emphasis is on short-term expectations of profit and does not take into account long-term prospects, as well as the opposing policies of competitors and the regulatory activities of the state. This goal is often used by enterprises in the unstable conditions of a transition economy.

3. Short-term maximization of turnover. The price that stimulates the maximization of turnover is chosen when the product is produced corporately, and in this case it is difficult to determine the structure and level of production costs. In order to realize the set goal (maximization of turnover), the commission percentage of the sales volume is set for the intermediaries. Short-term maximization of turnover can ensure maximum profit and market share in the long term.

4. Maximum increase in sales. Enterprises that pursue this goal believe that increased sales will lead to a decrease in unit costs and, on this basis, an increase in profits. These businesses set prices as low as possible. This approach is called "market attack pricing".

5. Skimming the cream off the market by setting high prices. Such a policy takes place when an enterprise sets the highest price for its new products, significantly higher than the production price. This is the so-called "premium pricing". As soon as sales at a given price decrease, it is necessary to reduce the price in order to attract the next layer of customers, thereby reaching the maximum possible turnover in each segment of the target market.

6. Leadership in quality. An enterprise that manages to consolidate its reputation as a leader in quality sets a high price for its product in order to cover the high costs associated with improving quality and the costs of research and development and development work carried out for these purposes. The listed objectives of the pricing policy can be carried out at different times, at different prices, there can be a different ratio between them, however, they all serve a common goal - long-term profit maximization.

Product life cycle pricing policy

The most famous and most criticized concept is the concept of the product life cycle. It assumes that each product is on the market for a limited time due to obsolescence and is directly related to pricing, since it allows you to study the price behavior at different stages of the product's life cycle, and thereby develop a pricing policy for each phase of the cycle. Each product goes through the following stages: development and entry into the market, growth, maturity, fall and disappearance from the market, that is, it lives its own life cycle, which has a different total duration, the duration of individual stages within the cycle, and the peculiarities of the development of the cycle itself.

For each stage of the product life cycle, a single price is rarely set; at each stage, new consumer segments with different price sensitivities appear on the market, which is taken into account in pricing practice.

Development stage and product entry into the market

The main characteristics of the stage of development and entry into the market: significant research, development and production costs, the absence of actual competitors, the price is an indicator of the quality of the product. On the one hand, the price at this stage does not play a significant role. However, if for consumers the price is an indicator of a certain quality, and at this stage of the product's existence they cannot yet compare it with alternative products, then their behavior is relatively insensitive to the price of the innovative product. Therefore, manufacturers must provide broad information about the benefits that consumers will receive from using a new product. In turn, information about the quality of a product is most often disseminated through potential buyers, so the future long-term demand for a product depends on the number of initial buyers. According to experts, demand begins to adapt to a new product if the first 2-5% of consumers have adapted to it.On the other hand, the price at this stage should primarily compensate for the initial costs of research and development of a new production. Therefore, it is usually high.

“Growth” Stage During the “Growth” stage, a product first encounters its competitors, thereby creating greater choice for the consumer. At the same time, consumer awareness increases, which increases his sensitivity to the price of the product. The price is high at this stage, but lower than in the previous phase. The price should exactly match the quality of consumer value that the buyer expects. Entering the mass market depends on the state of the industry, internal capabilities, external environment, goals and directions of the company's future development. In any case, two market elements will always constrain a producer's options: competitors and consumers. At the “growth” stage, the following pricing goals can be achieved: - “skimming”, or rewards, when the price is set higher than the price of competitors, emphasizing the exceptional quality of the product; - setting the price "parity". This is a situation when there is an explicit or secret collusion with competitors, or when there is an orientation towards the leader in setting prices. In this case, the focus is on the most typical mass buyer, that is, the firm works with the entire market.

Stage of "maturity" of the product The peculiarity of the stage of "maturity" is the appearance on the market of the most price-sensitive group of consumers.

In general, the market situation is as follows:

1) the market is saturated with a product;

2) competition is weakening due to the elimination of firms that have failed to withstand it (first of all, with high production costs);

3) some firms switch to creating a new product. The price level at the stage of maturity is low.

At this stage, for the company, its market share is important, since its decline, even at low costs and the inability to increase the price, leads to an inability to recoup costs. Often, the “saturation” stage is distinguished as a separate stage in the life cycle. but it can also be seen as the final phase of maturity. During this period, the market is saturated, demand requires new products. To prevent competitors from taking over the initiative, it is necessary to create new products. At this stage, the market expands, firstly, due to previously not covered potential consumers; secondly, due to the geographical expansion of the market. It is at this stage that a certain general "market" price appears, to which producers gravitate to a greater or lesser extent, firms have lower costs of promoting goods through existing links. There is good competition among consumers.

Fall stage At this stage, the commodity smothers its existence in conditions of underutilization of production capacities. The price is either lower than before, or increases if a "lagging" buyer joins in. The impact of this situation on prices depends on the ability of the industry or individual firm to get rid of excess capacity for the production of a given product and switch to a new product. Profits and price can fall sharply, but they can also stabilize at a low level.

In any case, production will be ineffective for any firm. You should also consider the following:

1. If most of the costs are variable costs or funds can be reallocated to more profitable industries (for example, by reducing the number of employees), prices should decrease slightly, which will give an impetus to the reduction of production capacity in other firms.

2. If costs are largely fixed and irrecoverable, and average costs are dependent on declining capacity utilization, price competition may increase as firms try to increase capacity utilization and capture a larger share of a declining market.

3. Basic pricing strategies An enterprise's pricing policy is the basis for developing its pricing strategy.

Pricing strategies are part of the overall development strategy of the company. A pricing strategy is a set of rules and practices that it is advisable to adhere to when establishing market prices for specific types of products manufactured by an enterprise.

The main types of pricing strategies are;

1. High price strategy

The goal of this strategy is to generate super-profits by “skimming the cream” from those buyers for whom the new product is of great value and who are willing to pay more than the normal market price for the purchased product. The strategy of high prices is applied when the company is convinced that there is a circle of buyers who will present demand for an expensive product. This applies: - firstly, to new, first time appearing on the market, goods protected by a patent and have no analogues, that is, to goods that are at the initial stage of the "life cycle"; - secondly, to goods aimed at wealthy buyers who are interested in the quality, uniqueness of the goods, that is, to such a market segment where demand does not depend on price dynamics: - thirdly, to new goods for which the company has there is no prospect, long-term mass sales, including due to the lack of the necessary capacities. Pricing policy during the period of application of high prices is to maximize profits until the market for new products becomes an object of competition. The strategy of high prices is also used by the company for the purpose of testing its product, its price, and gradually approaching an acceptable price level.

2. Strategy of average prices (neutral pricing) Applicable in all phases of the life cycle, except for decline and is most typical for most enterprises that consider making a profit as a long-term policy. Many enterprises consider such a strategy to be the fairest one, since it excludes “price wars”, does not lead to the emergence of new competitors, does not allow firms to profit from buyers, and gives the opportunity to receive a fair return on invested capital. Foreign large and super-large corporations in most cases are content with a profit of 8-10% to the share capital.

3. Low price strategy (price breakout strategy) The strategy can be applied at any phase of the life cycle. It is especially effective when the price elasticity of demand is high.

It is used in the following cases:

a) with the aim of penetrating the market, increasing the market share of their product (crowding out policy, non-admission policy);

b) for the purpose of additional loading of production facilities;

c) to avoid bankruptcy. The low price strategy aims to generate long-term, not quick, profits.

4. Target price strategy With this strategy, no matter how prices change, sales volumes, the amount of profit should be constant, that is, profit is a target value. It is used mainly by large corporations.

5. Strategy of preferential prices Its goal is to increase the volume of sales. It is applied at the end of the product life cycle and manifests itself in the application of various discounts.

6. Strategy of "linked" pricing When using this strategy, when setting prices, they are guided by the so-called consumption price, which is equal to the sum of the price of the product and the costs of its operation.

7. Strategy of "following the leader" The essence of this strategy does not imply the establishment of a chain for new products in strict accordance with the price level of the leading company in the market. It is only about taking into account the pricing policy of the industry or market leader. The price of a new product may deviate from the price of the leading company, but within the specified limits, which are determined by quality and technical superiority.

Less commonly, the following strategies are used:

a) constant prices. The company seeks to establish and maintain constant prices over a long period, and since production costs increase or may increase, instead of revising prices, companies reduce the size of the package, change the composition of the goods. For example, you can reduce the weight of a loaf of bread worth 10 rubles, while leaving the price unchanged. The consumer prefers such changes to higher prices;

b) unrounded prices, or psychological prices. These are usually discounted prices against some round sum. For example, not 10 thousand rubles, but 9995; 9998. Consumers have the impression that the company carefully analyzes its prices and sets them at a minimum level. They like to get change;

c) price lines. This strategy reflects a range of prices, where each price represents a certain level of quality for the product of the same name. In this case, two decisions are made: a range of offer prices is determined - the upper and lower limits - and specific prices are set within this range. The range can be defined as low, medium and high.

Even less common are pricing strategies such as:

Sales promotion;

Differentiated prices;

Restrictive (discriminatory) prices;

Falling leader;

Bulk purchase prices;

Unstable, changing prices.

Enterprise pricing is a complex process consisting of several interrelated stages: collection and systematic analysis of market information.

Justification of the main goals of the company's pricing policy for a certain period of time, the choice of pricing methods, the establishment of a specific price level and the formation of a system of discounts and premiums to the price, adjusting the company's price behavior depending on the prevailing market conditions.

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

Tasks and mechanism for developing a pricing policy.

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

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

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

when it is necessary to respond with prices to the market policies of competitors;

what measures of pricing policy should be accompanied by the introduction of a new product into the market;

for which goods from the sold assortment it is necessary to change prices;

in which markets an active pricing policy should be pursued, the pricing strategy should be changed;

how to distribute certain price changes over time;

what price measures can be used to improve sales efficiency;

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

Setting the goals of the pricing policy.

At the initial stage of developing a pricing policy, an enterprise needs to decide which economic goals it seeks to achieve by releasing a specific product. Usually, there are three main goals of pricing policy: ensuring sales (survivability), maximizing profits, and retaining the market.

Ensuring sales (survival) is the main goal of enterprises operating in a highly competitive environment when there are many manufacturers of similar goods on the market. The choice of this goal is possible in cases where consumer demand for price is elastic, as well as in cases where the enterprise sets the task of achieving maximum growth in sales and increasing total profit by slightly reducing income from each unit of goods. An enterprise can proceed from the assumption that an increase in sales will reduce the relative costs of production and sales, which makes it possible to increase sales of products. To this end, the company lowers prices - it uses the so-called penetration prices - specially lowered prices that promote sales expansion and capture a large market share.

Setting the goal of maximizing profit means that the company seeks to maximize its current profit. It estimates demand and costs at different price levels and chooses a price that will maximize cost recovery.

The goal pursuing market retention presupposes the preservation of the existing position in the market or favorable conditions for its activities by the enterprise, which requires the adoption of various measures to prevent a decline in sales and aggravation of competition.

The above pricing goals are usually long-term, calculated over a relatively long period of time. In addition to long-term goals, the company can set short-term pricing policy goals. These usually include the following:

stabilization of the market situation;

reducing the impact of price changes on demand;

maintaining the existing leadership in prices;

limiting potential competition;

enhancing the image of an enterprise or product;

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

Patterns of demand. The study of the laws governing the formation of demand for a manufactured product is an important stage in the development of an enterprise's pricing policy. Demand patterns are analyzed using supply and demand curves and price elasticities.

The less elastic demand reacts, the higher the price the seller of the goods can set. And vice versa, the more elastic demand reacts, the more reasons to use a policy of lowering prices for manufactured products, as this leads to an increase in sales volumes, and, consequently, in the income of the enterprise.

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

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

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

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

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

Studying the products of competitors, their price catalogs, polling buyers, the company must objectively assess its position in the market and, on this basis, adjust the prices for products. Prices can be higher than those of competitors, if the manufactured product is superior in quality characteristics, and vice versa, if the consumer properties of the product are inferior to the corresponding characteristics of competitors' products, then the prices should be lower. If the product offered by the company is similar to the products of its main competitors, then its price will be close to the prices of competitors' products.

Enterprise pricing strategy.

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

An enterprise can choose a passive pricing strategy, following the "price leader" or the bulk of producers in the market, or try to implement an active pricing strategy that takes into account, first of all, its own interests. The choice of a pricing strategy, moreover, largely depends on whether the company offers a new, modified or traditional product on the market.

When launching a new product, the company chooses, as a rule, one of the following pricing strategies.

Skimming strategy. Its essence lies in the fact that from the very beginning of the appearance of a new product on the market, the highest price is set for it based on the consumer who is ready to buy the product at that price. The decline in prices takes place after the first wave of demand subsides. This allows you to expand the sales area - to attract new buyers.

This pricing strategy has several advantages:

the high price makes it easy to correct the error in the price, since buyers are more favorable to lower prices than to increases;

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

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

a high initial price contributes to the creation of an image of a quality product among buyers, which can facilitate its implementation in the future when the price is reduced;

the increased price increases demand in the case of a prestigious product.

The main disadvantage of this pricing strategy is that the high price attracts competitors - potential manufacturers of similar products. Skimming the cream is most effective when competition is somewhat limited. Sufficient demand is also a prerequisite for success.

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

The psychological price strategy is based on setting a price that takes into account the psychology of buyers, the peculiarities of their price perception. Usually, the price is set at just below the round sum, and the buyer gets the impression of a very accurate determination of the production costs and the impossibility of deception, a lower price, a concession to the buyer and a win for him. It also takes into account the psychological moment that buyers like to receive change. In fact, the seller wins by increasing the number of products sold and, accordingly, the amount of profit received.

The strategy of following a leader in an industry or a market assumes that the price of a product is set based on the price offered by a major competitor, usually the leading firm in the industry, the enterprise that dominates the market.

A neutral pricing strategy assumes that the pricing of new products is based on the actual costs of production, including the average rate of return in the market or industry.

The prestigious pricing strategy is based on high prices for products of very high quality with unique properties.

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

the speed of introduction of a new product into the market;

market share controlled by the firm;

the nature of the goods sold (degree of novelty, interchangeability with other goods, etc.);

payback period of capital investments;

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

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

Pricing strategies for goods sold on the market for a relatively long time can also be guided by different types of prices.

The moving price strategy assumes that the price is set almost in direct proportion to the ratio of supply and demand and gradually decreases as the market becomes saturated (especially the wholesale price, and the retail price can be relatively stable). This approach to pricing is most often used for consumer goods. In this case, prices and volumes of output of goods closely interact: the larger the volume of production, the more opportunities the enterprise (firm) has to reduce production costs and, ultimately, prices. Given a pricing strategy, it is necessary:

prevent a competitor from entering the market;

constantly take care of improving the quality of products;

reduce production costs.

The long-term price is set for consumer goods. It acts, as a rule, for a long time and is weakly subject to changes.

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

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

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

The strategy of setting prices for products discontinued from production, the production of which is discontinued, does not imply a sale at reduced prices, but an orientation towards a strictly defined circle of consumers who need these goods. In this case, the prices are higher than those for ordinary goods. For example, in the production of spare parts for cars and trucks of various brands and models (including discontinued).

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

Choosing a pricing method.

Having an idea of ​​the laws governing the formation of demand for a product, the general situation in the industry, prices and costs of competitors, having determined its own pricing strategy, an enterprise can proceed to choosing a specific pricing method for the product being produced.

Obviously, a correctly set price should fully reimburse all costs of production, distribution and sale of goods, and also ensure the receipt of a certain rate of profit. Three pricing methods are possible: setting a cost-based minimum price level; setting the maximum price level formed by demand, and, finally, setting the optimal price level. Consider the most commonly used pricing methods: "average cost plus profit"; ensuring break-even and target profit; setting a price based on the perceived value of a product; setting prices at the level of current prices; sealed envelope method; setting a price based on closed trades. Each of these methods has its own characteristics, advantages and limitations that must be borne in mind when developing a price.

The simplest is the “average cost plus profit” methodology, which consists in calculating a margin on the cost of goods. The amount of the markup can be standard for each type of product or it can be differentiated depending on the type of product, unit cost, sales volumes, etc.

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

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

Another cost-based pricing method aims to generate target profits (break-even method). This method makes it possible to compare the profit margins obtained at different prices, and allows a firm, which has already determined a profit rate for itself, to sell its product at a price that, under a certain release program, would allow to achieve the maximum degree of this task.

In this case, the price is immediately set by the firm based on the desired amount of profit. However, in order to reimburse production costs, it is necessary to sell a certain volume of products at a given price or at a higher price, but not less of it. Here, the price elasticity of demand is of particular importance.

Such a pricing method requires a firm to consider different pricing options, their impact on the sales volume required to overcome the break-even level and obtain target profits, as well as analyze the likelihood of achieving all of this at each possible price of the product.

Establishing a price based on the "perceived value" of a product is one of the most original pricing methods, when an increasing number of firms in calculating prices begin to proceed from the perceived value of their products. In this method, costly benchmarks fade into the background, giving way to the perception of goods by buyers. To form in the minds of consumers an idea of ​​the value of a product, sellers use non-price methods of influence; provide service, special guarantees to customers, the right to use the trademark in case of resale, etc. Price then reinforces the perceived value of the product.

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

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

The pricing method based on the current price level is quite popular. In cases where elasticities of demand are difficult to measure, firms feel that the current price level represents the collective wisdom of the industry to generate a fair rate of return. And they also feel that sticking to current prices is about maintaining a normal equilibrium within the industry.

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

Closed tendering is used when firms compete for contracts during tendering. At its core, this pricing method is almost the same as the method discussed above. However, the price set on the basis of a closed auction cannot be lower than the cost price. The goal pursued here is to win the auction. The higher the price, the lower the probability of receiving the order.

Having chosen the most suitable option from the above methods, the firm can proceed with the calculation of the final price. In this case, it is necessary to take into account the psychological perception by the buyer of the price of the firm's goods. Practice shows that for many consumers the only information about the quality of a product is contained in the price and in fact the price is an indicator of quality. There are many known cases when the volume of sales and, consequently, production increases with the rise in prices.

Price modifications.

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

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

A discount is a discount or reduction in the price of goods that stimulate payment for goods in cash, in the form of an advance or prepayment, as well as before the deadline.

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

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

Price modification to stimulate sales depends on the goals of the firm, the characteristics of the product and other factors. For example, special prices can be set during any events, for example, seasonal sales, where prices for all seasonal goods are reduced, exhibitions or presentations, when prices may be higher than usual, etc. To stimulate sales, bonuses or compensation can be used to a consumer who bought a product in retail and sent an appropriate coupon to the manufacturer; special interest rates for the sale of goods on credit; warranty conditions and maintenance agreements, etc.

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

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

A stepwise price reduction for the offered assortment of goods is used when the company does not produce individual products, but whole series or lines. The company determines which price steps must be entered for each individual product modification. At the same time, in addition to the difference in costs, it is necessary to take into account the prices of competitors' products, as well as the purchasing power and price elasticity of demand.

Price modification is possible only within the upper and lower boundaries of the set price.

5. PRICE POLICY

Price policy- This is the management of the enterprise's activities to establish, maintain and change prices for manufactured products, carried out in line with the marketing concept and aimed at achieving its goals.

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

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

A purely competitive marketplace consists of many buyers and sellers of a standardized product. There are no serious legal, organizational, financial or technological restrictions to enter the industry. Since each firm produces a small fraction of the total output, none of them has a large impact on the price level. Sellers in such markets do not spend a lot of time developing a marketing strategy, as its role in such a market is minimal.

The number of firms operating in the market of monopolistic competition is large, but much less participants in the markets of pure competition. As a rule, these are 20-70 enterprises. Getting into the industry is easy enough. Transactions in such a market are carried out in a wide range of prices. The price range is due to the ability of manufacturers to offer customers different product options. Products may differ from each other in quality and appearance. Differences can also be found in related services. Buyers see the difference in the offer and agree to pay differently for the items. Control over prices is limited, as there are enough firms for each to have a small share of the total market. In such a market, the use of marketing measures is of great importance, but they have less impact on each individual firm than in an oligopolistic market.

Table 26

Characteristics of market types

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

With a pure monopoly on the market, there is only one seller who produces a product that has no close substitutes. It can be a government agency, a private regulated monopoly, or an unregulated monopoly. A state monopoly can pursue a variety of goals through price policies. A regulated monopoly is allowed by the government to set prices that ensure a “fair” rate of return. An unregulated monopoly sets prices on its own. Entry into the monopoly industry is blocked by various barriers.

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

The methodology for setting the initial price of a product consists of six stages.

1. Setting pricing objectives

The tasks of pricing arise from the goals and objectives of the general marketing policy of the enterprise. The main goals are presented in table. 27.

Table 27

Pricing objectives

2. Determining the level of demand

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

direct price elasticity of demand;

income elasticity of demand;

cross price elasticity of demand.

3. Cost estimation

The level of costs for the production and sale of goods allows you to determine the minimum price that the firm must assign to cover them.

4. Analysis of prices and products of competitors

Firm pricing is influenced by the prices of competitors' products. Focusing on a comparative analysis of the quality of competitors' products and prices for them, the firm is able to determine the average price range for its products.

5. Choosing a pricing method

The most common pricing methods are: “costs plus margin”, break-even analysis and target profit assurance, pricing based on the perceived value of a product, pricing with a focus on the level of competition, aggregate and parametric methods.

The “cost plus margin” method is the simplest way of pricing, it consists in calculating a certain margin on the full cost of goods. The prevalence of this method, in addition to its simplicity, is also determined by the fact that manufacturers know more about costs, rather than about demand. This method is considered fair; if it is used by all sellers, then the prices for similar goods are similar.

At the same time, the “cost plus profit” method also has significant drawbacks: it is not related to current demand, does not take into account the consumer properties of goods. In addition, full costs include fixed costs that are not associated with the production of a specific product, the methods for allocating them to products are conditional and can lead to price bias.

Determination of the price based on the analysis of break-even and ensuring the target profit is based on the appointment of such a price level that will provide the firm with the desired amount of profit. Determination of the price by this method can be performed by calculation and graphical methods.

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

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

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

The aggregate method is used for goods consisting of individual products or assemblies (parts) and consists in a simple summation of prices for individual elements of the goods.

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

6. Price fixing

The original price of the item is determined by using the selected pricing method.

7. Development of the dynamics of changes in the original price of the product

The dynamics of changes in the original price of a product depends on the chosen strategy. When the price of new products changes, two main strategies are used: “skimming” and “lasting implementation”.

The “skimming” strategy consists in initially setting a high price for a novelty based on narrow market segments and further gradually reducing the price for a sequential stepwise coverage of the remaining segments. The “Sustainable Implementation” strategy is based on the use of initial low prices to reach the broadest market with the possibility of subsequent increases.

When developing the dynamics of changes in the price of existing goods, two main types of strategies can be used: the strategy of a moving falling price and the strategy of a preferential price.

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

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

standard or flexible prices;

uniform or discriminatory prices;

psychologically attractive prices;

system of price discounts.

Price policy — an extremely important tool of a manufacturing company, however, its use is fraught with risk, since if it is mishandled, the most unpredictable and negative results in terms of their economic consequences can be obtained. And the absence of a pricing policy as such is completely unacceptable for a company.

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

Figure 13.1 - The main objectives of pricing policy

The nature of the goals and objectives of the company is reflected in the specifics of the pricing policy: the larger, more varied and more difficult to achieve the general corporate goals, strategic guidelines and objectives in the field of marketing, the more complex the goals and objectives of the pricing policy, which, in addition, depends on the size of the firm, the policy of differentiation of the product, the branch of the firm.

We list several aspects of the formation of pricing policy:

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

· Application of methods to help optimize settlement prices;

· The choice of the strategy of leadership or the strategy of following the leader in setting prices;

· Determination of the nature of the pricing policy for new goods;

· Formation of a pricing policy, taking into account the phases of life cycle;

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

· Accounting in the pricing policy of the results, comparative analysis of the ratios "costs / profit" and "costs / quality" for their own firm and competing firms.

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

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

1) the formulation of pricing tasks;

2) determination of demand;

3) cost estimation;

4) analysis of prices and products of competitors;

5) choice of pricing methods;

6) setting the base price.

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

Price modification system:

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

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

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

- strategy 2: uniform price. The manufacturer sets a single price for all consumers, regardless of their location. This pricing strategy is the opposite of the previous one. In this case, consumers who are in the most distant territory gain in price;

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

- strategy 4: accrual to all buyers, regardless of the actual place of dispatch of the goods, additional freight costs to the selling price, charged from the selected base point to the buyer's place-position. In the process of implementing this strategy, the manufacturer can consider several cities as a base point (freight base);

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

2. Price modifications through the system of discounts in the form of a cash discount (discount when paying in cash or before the deadline), bulk discounts (price reduction when buying a large batch of goods), functional discounts (trade discounts provided to intermediary firms and agents included in the manufacturer's distribution network), seasonal discounts (offer after - or pre-season discounts), other discounts (offset of the price of a similar old product handed over by the buyer; discounts on the occasion of any holiday, etc.).

3. Price Modifications to Promote Sales is carried out in many forms: price-bait (a sharp temporary decline in prices in retail trade for well-known brands); prices set at the time of special events (valid only when certain events are held or when using special forms of offering goods - seasonal or other sales); bonuses (cash payments to the end customer who bought the product in the retail trade and presented the coupon to the manufacturer); favorable interest rates when selling on credit (a form of sales promotion without price reduction; widely used in the automotive industry); warranty conditions and maintenance contracts (may be included in the price by the manufacturer; services are provided free of charge or on preferential terms); psychological modification of prices (the possibility of offering one's own similar product at a lower price, for example, the price tag may indicate: "Price reduction from 500 thousand to 400 thousand rubles").

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

However, price discrimination justifies itself if the following conditions are met: its compliance with laws, invisibility of the conduct, clear division of the market into segments, exclusion or reduction to a minimum of the possibility of resale of “discriminated” goods, non-exceeding costs of segmentation and market control of additional revenue from price discrimination ...

The pricing policy of the manufacturing company, set out in a concise form, reflects mainly the world practice. However, as market relations develop in Russia, domestic manufacturers begin to develop and use a well-thought-out pricing policy that takes into account the specifics of local conditions.

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

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

New product development decisions also vary by firm size. Small firms usually decide to master a new product only if there is a specific order for it. Large firms, having significant financial reserves and the ability to maneuver, make appropriate decisions after conducting large-scale marketing research and market experiments.