Most small retailers approach pricing problems in the same way. For example, jewelry stores abroad traditionally simply double the price when determining the price of a product. For example, if a gold wedding necklace cost them $120, then, as a rule, the product is offered to the buyer for $240. This is a one hundred percent markup (surcharge) on the cost.

A more acceptable approach to pricing is the following: the pricing procedure in supermarkets and large stores is followed. Before the start of each season, these large retail enterprises set their plans for goods. Along with sales, they plan the necessary costs, profits, etc. The planned sales volume is first determined, all other indicators are tied to it as a percentage of the sales volume.

Of course, while a large department store has thousands of different types of products on display, a small store may only offer a hundred or two. For the owner of a small store, it is quite significant that the cost of an individual product can change throughout the year. However, by keeping records (recording inventory levels, accounting reports, etc.) in order, based on cost estimates, a small store owner can use this information to make decisions at the same level as a supermarket manager. For example, by analyzing volume, sales and income reporting for the previous year, a seller can carefully calculate distribution costs as a percentage of retail turnover. When developing plans for the current year, he can calculate both expected distribution costs and planned profit.

To demonstrate this, let’s return to the example of a product that cost the manufacturer 5 thousand rubles. and ended his journey by being offered by a wholesaler to a retailer for 10.4 thousand rubles. per unit of goods. Let's assume that in this case you are the owner of a store and calculate that your costs will be 34% of the turnover. If you want to make a profit of 8%, then by adding these figures, you will get a figure of 42% of turnover, which should more than cover the initial cost of your product. Consequently, products that cost you 10.4 thousand rubles. per unit, should be sold for approximately 14.8 thousand rubles. (10.4 X 1.42 = 14.8 thousand rubles).

When setting prices for their goods and/or services, businesses can resort to various types of “push” pricing strategies to expand sales, increase customer traffic, or otherwise spice up the sales process. This also applies to both wholesalers and retailers.

Some of the most common types of push pricing are briefly described below.

Pricing for the purpose of bait. An illegal practice of “push” in which a retailer prices products at negotiated prices (with no intention of selling the product) and then advertises the offer to attract customers to the stores.

“Include bait” pricing. Continuation of the bait pricing technique. It is used when a buyer of an advertised “bargain” appears in a store, and the seller tries to “switch” the buyer to a more expensive type of product or brand.

Pricing at a loss. Popular Retailer Technique: Involves lowering the offered price of one or more popular products to attract customers to the store. Although the firm earns a smaller trade discount than usual on the product, it will still earn a larger gross profit.

Pricing at a significant loss. A form of loss pricing in which the unit price of an item is reduced even more substantially, to the point where the seller offers the item below its original cost. (This pricing technique is illegal in most developed countries, and there are effective laws against unfair pricing.) This pricing can be used on an ad hoc basis for the dual purpose of clearing existing inventory while at the same time increasing the flow of customers into the store.

Multidimensional pricing. A “push” pricing technique aimed at getting customers to buy two or more products at the same time. For example, in this way: “three for fifty rubles.”

Pricing with odd and even endings. This is a price concept with psychological ramifications. Despite the fact that research in this area has not yet been completed, many retailers prefer to use prices ending in odd numbers, such as RUB 439, RUB 649, or RUB 539. On the other hand, there are those who prefer prices ending in even numbers or consisting only of tens or hundreds of rubles.

Prestigious pricing. A technique in which a retailer sets prices for products that are quite high compared to other firms in order to differentiate itself from a number of competitors; has the psychological effect of convincing people that given products (and firms) are of better quality.

Price lines. They are created to make it easier for customers to choose products. At the same time, price lines make it easier for the retailer to count inventory items. In this case, the number of possible choices for the buyer is reduced by the fact that similar products are grouped along just a few price lines. For example, a men's clothing store can group ties at 60, 120, 200 rubles, depending on their appearance and quality.

Psychological pricing. A term applied to any of the pricing tactics used by businesses to create buyer interest in a product or service by appealing to some people's beliefs: for example, prestige pricing or odd-ending price techniques.

Discounts. One of the most important aspects of pricing is the area of ​​discounts. A discount means a reduction in the constant selling price (or series of prices) of some product or service, usually expressed as a percentage of the price at which the product would normally sell.

For example, some retailers offer a discount to their staff and employees as part of their total compensation. Such discounts can reach 10 or 15% of the retail price of goods purchased in a store. This practice is typical, for example, for consumer cooperation in developed countries and is applied with a discount based on the volume of purchases by a member of the cooperative for the year. There is no doubt that this discount system can be successfully applied by organizations and enterprises in Russia.

Other important types of discount are the following:

• 1) monetary discount. A price reduction that exists to encourage early payment of an invoice;
• 2) introductory discount. Reducing the fixed price in order to encourage intermediary organizations (for wholesale and retail sales) or the buyer at the finish line to buy this type of (usually new) product;
• 3) quantitative discount. Reducing the regular price of a product in order to encourage consumers to buy the product in larger quantities;
• 4) seasonal discount. Reducing prices to encourage consumers to buy goods in advance for the upcoming season;
• 5) trade discount. Any reduction in the regular prices of a list of goods that are offered to intermediary firms as compensation for the functions they perform in the channel structure. Typically expressed as a percentage of the fractional price. For example, 50 thousand rubles. for 500 terry towels, 45% discount.

Chapter 1. Price as an economic category of commercial pricing

1.1. The essence of prices and their classification

The tangible value of a product (work, service), or how much at a certain moment the buyer will be able to pay the seller, is called the price of this product. The moment when the seller transfers the goods to the buyer is considered the current moment, it occurs during:

1) delivery of goods to the buyer, if the contract specifies this obligation of the seller;

2) placing the goods at the disposal of the buyer, if the goods must be transferred to the buyer at the location of the goods.

Determining the price at the current moment means a certain amount of money that the last buyer paid or the next one will pay. Karl Marx in his work “Capital” defined price as “the monetary name of labor embodied in a commodity: an indicator of the value of a commodity...”.

Price – This:

1) ordinate of the point of intersection of the supply and demand curves;

2) the most important indicator of the effectiveness of the economic and commercial activities of an enterprise (one of the factors for its survival in modern conditions).

To make a decision on the price of a specific product, you need to establish:

1) the amount of demand for a given product (work, service) and the degree of its duration;

2) the boundaries of the product market in terms of volume and duration;

3) the presence and nature of competitors in the market;

4) prospects for sales growth;

5) price level on the market for similar products;

6) the relationship between price and sales volumes;

7) the degree of influence on the market and the scope of government intervention;

8) the amount of production costs;

9) the ability to quickly launch a product into production;

10) the reality of increasing the volume of production of goods.

Consequently, price is a complex and complex category, it intersects almost all the main problems of the development of the economy, society as a whole, this mainly concerns the production and sale of products, determining their value, division and use of GDP and national income. Basically, the formation of the value of goods (works, services) occurs in the process of production and sales, when the use of cash savings is regulated using a set price. From the above it follows that the basis of prices is the necessary labor costs, the cost of goods, which are reflected in the price through the monetary form. The price is also influenced by many factors, such as transportation costs, which make up a significant share of the product price. Transport costs, in turn, are affected by the type of transport and the period during which the goods must be delivered to the consumer. The cost of goods delivered by air will be much higher than the cost of goods delivered by rail.

The price of a certain quantity of a product constitutes its value, therefore it is correct to speak of price as the value of the product in monetary terms (exchange value).

When exchanging goods for goods, a new price category appears - this is the commodity price of this type of product. You can get a complete picture of price by considering it as an economic category that combines concepts such as the seller's price and the buyer's price.

The market mainly uses a management approach to purchasing pricing issues, where price is a characteristic of a product, which considers key concepts of a market economy, such as need, requests, demand, supply, etc. The strategy for ensuring cost-effectiveness of an enterprise includes a set of measures that are aimed at structuring and high-quality implementation of the control and accounting function of the organization, the basis of which and the final indicator characterizing the product is the price, which takes into account the interests of all participants in the process of commodity exchange (producers and consumers).

Prices also largely regulate the structural proportions of social production. When, at a given price level, supply and demand are completely balanced, the volume of production and consumption can be considered optimal. If such a balance is disturbed, then the price is a signal to expand (contract) production or consumption. Intra-industry and inter-industry price ratios show the directions of effective capital investments and characterize the relative efficiency of certain industries. The price, which takes into account the effectiveness of the product, can play a regulatory role in the development of new technology and innovative processes.

Prices also act as a macroeconomic regulator of economic activity. Changes in retail prices and tariffs affect the living standards of the population. The price level for primary natural resources affects the production efficiency of all intermediate and final industries. The regulatory function of price is also manifested in the fact that in the current market prices are a regulator of the development (not development) of any types of new products, assessment of the effectiveness of economic activities, the direction of investment, etc. The dynamics of domestic prices is related to the efficiency of foreign trade, the value of the gross domestic product (GDP), national income, the required money supply and directly depends on the price level in the national economy, and this also reveals their regulatory function.

The results of an organization's activities, such as profit and profitability, often depend on the price level, which is why prices play an important role in the economy. The basis for making decisions on setting purchase prices can be the results of marketing research and balanced expert assessments of market conditions, not only within the region, but also significantly wider than its borders, since prices, as a rule, are the main factor in determining sales markets and volumes investments, and are also a determining indicator of the feasibility of producing a given product when calculating production costs.

Based on the nature of the turnover of industrial products, three types of prices are distinguished.

Wholesale prices– these are the prices for goods that are delivered by the seller (supplier) to the buyer for the purpose of its subsequent resale (professional use). This type of price is used when selling goods in large quantities to enterprises, sales and intermediary organizations, and trade organizations. International trade uses wholesale prices, which are usually lower than domestic wholesale prices. The peculiarity of the wholesale price is that in its size it is lower than the retail price by the amount of the retail markup (cape), and its level will always be slightly higher than the wholesale price when selling goods in small wholesale. Sales at wholesale prices arise only in the case when the production of products is carried out in a limited number of points, and the sphere of consumption of these products has a large segment.

Retail prices- These are the prices paid by retail buyers of products. Retailers buy products from wholesalers and then raise the price by the amount they cost and the profit they can make. Manufacturers initially offer a list of their retail prices for products, but retailers may adhere to these prices or provide a discount (markup) on these products. The retail price is set for products that are sold in small quantities; usually retail prices are higher than wholesale prices. There is such a phenomenon in the market as maintaining retail prices - a type of restrictive trade in which the supplier sets a price that is binding on all retailers.

For example, the suggested retail price of books is printed on the covers because, under the non-discount book agreement, booksellers are not allowed to sell below that price. When products are supplied to the seller through intermediaries, the retail price is often formed from the purchase price and the trade markup, and the trade markup, in turn, is determined by the seller based on market conditions (existing supply and demand). At retail prices, not only trade is carried out in the retail network, but also by parcel, both domestically and internationally.

Purchase prices, under which the state purchases products from enterprises, organizations, and the population. Under market relations, purchase prices have become the actual selling price of agricultural products, which is under the influence of monopolists, intermediaries of supply and demand. The state, trying to control the price level, introduced guaranteed prices for basic food products in 1995, but was unable to finance the implementation of this idea, so these prices were used as indicative prices for procurement for the formation of federal (regional) food funds.

However, price liberalization has led to faster growth in prices for inputs compared to increases in prices for agricultural products. It was reflected in the proportions of exchange, for example, if in 1991 it was necessary to sell 54.7 tons of wheat to purchase one tractor, then in 1995 it was necessary to sell 126.4 tons of wheat.

And in order to prevent the massive ruin of rural commodity producers, support prices were introduced, such prices include guaranteed purchase prices, which determine the lower limit of free market prices, taking into account reimbursement of transport costs, as well as target and threshold prices.

Prices for services are usually formed according to tariffs (rates) approved by the organization, therefore, when drawing up tariffs for services, not only the volume of work is taken into account, but also the amount of time spent and the quality of the service performed. The Ministry of Economy of the Russian Federation has developed Methodological recommendations for the formation and application of free prices and tariffs for products, goods and services (letter No. 7-1026 dated December 20, 1995), which do not apply to products for which state regulation of prices and tariffs is carried out (clause 1.3 Methodological recommendations):

“Free prices and tariffs for paid services for the population are formed based on the cost and required profit, taking into account market conditions, the quality and consumer properties of services, the degree of urgency of order execution and value added tax. When calculating the taxable turnover of goods that are subject to excise taxes, they include the amount of excise taxes...”

There are also other types of prices, for example prices for construction products.

Construction products are valued at three types of prices:

1) estimated cost - the maximum amount of costs for the construction of each facility;

2) list price - the average estimated cost of a unit of final product of a typical construction project;

3) negotiated price - a price established by agreement between customers and contractors.

Transfer prices are formed during the exchange of goods between enterprises belonging to one transnational organization. For example, if the customs authorities decide that the transaction price declared by the importer was influenced by a “connection” between legally recognized partners in business (one of them directly controls the other or both of them are controlled by a third party; they are employers and employees; members of the same family), they have the right not to recognize the transaction price and must then enter into consultation with the importer.

Prices are also divided according to the degree and method of regulation: rigid (prices set by the state); established (regulated by standards); negotiated (contractual); free.

Stiff prices prevent self-regulation of the economy, they are set by monopolistic producers for products that have high elasticity of demand in relation to prices; in content, these prices act as the antipode of flexible prices that quickly and naturally respond to changes in demand and supply.

Managed prices (fixed) usually set administratively by the state. Without responding to changes in supply and demand, they are an obstacle to market self-regulation of the country's economy and impede market freedom.

When determining a fixed price, the forecasting method based on proportional dependencies has become widespread (indicators are “tied” to the base indicator using proportional dependencies). The base indicator is sales revenue or the cost of goods sold, to which the standard profit is added or the government price subsidy is subtracted.

In accordance with Art. 424 of the Civil Code of the Russian Federation, the execution of a contract is paid at the price established by agreement of the parties, but sometimes, in cases provided for by law, prices (tariffs, rates, rates) regulated by authorized state bodies are applied.

The Tax Code of the Russian Federation provides for a special rule according to which, when selling goods (work, services) at state regulated prices (tariffs) established for tax purposes, regulated prices (tariffs) are applied (clause 13 of Article 40 of the Tax Code of the Russian Federation).

Bodies regulating natural monopolies may use certain methods of regulating the activities of natural monopolies, including price regulation (Article 6 of the Federal Law of August 17, 1995 No. 147-FZ “On Natural Monopolies”). The government's influence on prices during regulation is usually indirect (limited) in nature and is carried out by influencing changes in demand and supply. State regulation of tariffs of natural monopolies is sometimes replaced by market regulation mechanisms (through the application of relevant norms of antimonopoly legislation). Thus, when setting a higher (lower) price for a product, the state can reduce the taxes paid by buyers (consumers) of these products to stimulate this particular type of production, which in turn can lead to an increase in demand for the product. Since the beginning of 2008, the growth of tariffs for the services of natural monopolies and housing and communal services has increased sharply, the average annual increase in electricity for the population was 15.7%, for natural gas - 26.8%, for housing and communal services - 18.3%. This increase is significantly higher than in previous years. Therefore, from the beginning of 2008, the state planned a reversal of prices in the other direction; up to this point they had been declining, but now they will rise. And since this will directly affect producers, this can be called a contribution to the development of inflation expectations.

Having analyzed the situation that arose, we found out that the primary influence on the fact that domestic producers began to raise prices in the fall of 2007 was not the rise in world food prices, but the decisions made to increase tariffs for the services of natural monopolies and housing and communal services from January 2008 . Domestic commodity producers, in turn, included this increase in the price of products in advance, so product prices increased. The process of rising prices or depreciation of money (inflation) arises as a result of the overflow of commodity circulation markets with the money supply and is the result of instability when demand exceeds supply. Uneven price growth creates inequality in profit rates and stimulates the outflow of resources from one sector of the economy to another, but timely examination of such actions makes it possible to identify such risks.

Indexation of regulated prices (tariffs) for goods (services) needs to be carried out more evenly throughout the year, and as long as state regulation of tariffs for natural monopolies remains in place, its impact on inflation dynamics can be reduced by reducing indexation from the beginning of the year. For many years, there was a practice when prices (tariffs) were raised from January 1 of the next year, this led to the fact that inflation processes were already forming before this date, therefore, as a rule, an unreasonably high jump in prices occurred at the beginning of the year. All this has led to the fact that proposals to introduce state regulation of prices for certain products are again beginning to be discussed, and as soon as this begins to be implemented, inflation will accelerate and the forgotten problem of commodity shortages will again become a reality.

The contract price is set for products that are produced in a small batch. The basis of the contract price is the cost price (cost estimate) for the product, when, by mutual agreement between the seller and the buyer, the price is set in the manner determined by the pricing authorities.

This type of price is also used in foreign economic relations in commodity exchange transactions, within the framework of direct economic relations of enterprises, with the help of a business agreement, supply agreement, purchase and sale agreement and other agreements as agreed with the parties to the agreement. Additions (discounts) may be added to the contract price for quality and urgency; the price is highlighted in contracts in a special section.

The price that is set by the investor (customer) and the general contractor (subcontractor) on an equal basis when concluding a contract for capital construction, repair of buildings and structures (subcontract agreement), including based on the results of tenders (contract bidding), is called free (negotiable ) prices.

Inconsistency of contractual terms, such as price, quality and range of products received, is one of the most common violations of the terms of the purchase and sale agreement.

You can set a contract price in foreign currency (Clause 2, Article 317 of the Civil Code of the Russian Federation). And until the obligation is paid, its size is revalued (with the formation of an exchange rate difference in tax accounting), and the final price in rubles is formed only at the time of repayment of the debt, and until this moment the contract price is indicated in all primary documents.

Free prices for products are established (including VAT) by product manufacturers in agreement (on an equal basis) with retail and other enterprises selling products to the public, non-market consumers, as well as with intermediaries (including trade and purchasing, supply and marketing enterprises and organizations). If the consumer does not have the opportunity to choose another supplier of such products, the final decision on the price level and their application is made by government agencies for establishing and regulating prices (tariffs). In the world market, multiple types of prices are used, so the same product can be sold at different prices depending on the terms of the commercial transaction, the nature of the market and the sources of price information. The most general expression of price used in international transactions is the concept of world prices, which refers to the prices of large export-import transactions concluded in the main centers of world trade. Participants in a trade transaction begin price negotiations with a base price, which is based on the price that is published in reference books (reference price) and price lists (list price).

The base price is determined by the international trade price index (export and import) in general and for individual groups of goods. Basic prices are published in international and national foreign trade statistics and economic periodicals.

Base price– this is the price of products with certain quality parameters, which is established at the time of concluding a transaction, and when market conditions change, the base price remains stable, and premiums and discounts change significantly.

Reference price– this is a type of wholesale prices in domestic and international trade. Reference prices for the seller and buyer serve as the starting point for determining the contract price; otherwise, they are nominal in nature, representing a source of official information on prices. Reference prices are used for the supply of small and medium-sized batches of products and serve as the basis for establishing discounts (surcharges). In practice, reference prices for exported (imported) goods are called list prices. Reference prices are published in periodicals (newspapers, bulletins, industry and economic magazines), catalogs issued by publishing houses and other directories. The retail price for a consumer product, which is recommended by its manufacturers, is also called the list price.

Price reductions organized by the manufacturer are accompanied by the provision of discounts to the retail chain, and an ideally executed operation can lead to an increase in sales, therefore, in order to attract buyers, the seller may give them a discount from the list price in the absence of an agreement to maintain a minimum retail price. In this case, the supplier's price, which is indicated on the invoice issued to the wholesaler (retailer), before deduction of discounts, will also be called the list price.

The price of a specific trade transaction reflected in the document for the supply of goods is called invoice price. The invoice price for the same goods may vary depending on transport costs and insurance costs; in trade, this is the price indicated on the invoice for the goods delivered. Depending on the delivery method, the invoice price sometimes includes the costs of transporting the goods, loading and unloading, insurance, payment of export duties, and various fees.

World prices are formed as a monetary expression of the price of production, determined by the specific technologies of countries participating in the world market. World prices are set in freely convertible currencies, since payment in non-convertible currencies leads to unreasonably inflated prices; this type of price is set by leading producers who have a significant share in the total volume of products produced and constantly maintain their leading position in commodity markets. World prices can also be called the prices of large-scale transactions that involve unrelated export (import) transactions, because otherwise, when carrying out barter transactions, trading partners will be able to allow significant deviations in prices, these are the prices of basic or representative markets.

World prices are not an absolute indicator, since they change along with the conditions of world production and consumption. Thus, the depletion of deposits, the corresponding reduction in world resources from which a particular product is produced (while maintaining stable demand for it), lead to a change (increase) in the world price for it. On the other hand, if new deposits are discovered and the demand for this product decreases, then with an excess of resources, the price for it will certainly decrease.

World prices can also be formed as a result of agreements between leading industrialized countries and change if such agreements are canceled. The level of world prices is also influenced by monetary reforms carried out by governments, as a result of which the scale of prices within the country changes, which in turn affects the formation of exchange rates. For example, the level of world oil prices is influenced by OPEC countries, grain prices by the USA and Canada, etc.

The relationship between supply and demand for certain products has a great influence on the level of world prices due to the fact that prices differ depending on the characteristics of the concluded contract, the place and conditions of sale of the product, as well as the time of year.

Comparable prices– these are prices of a certain period (year, month), on a certain date or in a certain region (economic region, territorial-administrative entity, etc.), conventionally taken as the base when comparing cost indicators. Comparable prices make it possible to identify patterns of development of the displayed phenomena, changes occurring in them, in time and space. To re-evaluate aggregate cost economic indicators (gross domestic product (GDP), national income, capital investments, fixed assets, etc.) in comparable prices, deflators are used - summary (aggregate) price indices showing the average change in prices for the corresponding aggregated groups of goods (services) , types of activities, sectors of the economy, the national economy as a whole. The calculation of summary price indices - deflators for the retrospective period and the recalculation of summary economic indicators in comparable prices is carried out by state statistics bodies.

Comparable can be called a price given in value under the conditions of a certain period of time; it is used when comparing production volumes, trade turnover, and other indicators in certain periods in order to avoid distortions introduced by inflation. Comparable prices are used when comparing consumption levels in different years; they reflect the dynamics of the mass of consumer values. The price of products in this case acts only as a means of comparison, of bringing products that are incommensurable in physical terms to a common denominator. If you compare products over two years as a comparable price, you can take the price of any year, while when analyzing a longer period, you need to take the price of the base year preceding the year of major changes in the price system as a comparable price.

For example, in order to eliminate differences in price levels, when comparing cost economic indicators across regions, the prices of a single region with an average price level can be conditionally taken as comparable prices.

The regulatory approach to tariff regulation is evolving as telecommunications markets move from monopoly to competition. Prices are subject to regulation only for the services of existing operators in certain markets where the operators have a dominant position. While basic local telephone services provided by dominant operators are regulated in almost all countries, local telephone services provided by competitive fixed and mobile market participants are often exempt from price regulation.

Discretionary price regulation– this is setting prices below cost for connection, subscription and local call services. Discretionary price regulation is aimed at achieving social (political) goals, and not at solving financial (economic) problems. This regulation remains where the state continues to manage telecommunication networks; in our country, such regulation is carried out by Rossvyaz. It regulates them by setting maximum (maximum or minimum) prices for connection services and traffic transmission services. Rossvyaz also establishes the volume of traffic transmission services (for example, no more than 1 thousand minutes per month per connection point), which is subject to guaranteed payment by the consumer of services if their volume in the billing period is less than the established value.

There have been changes in the legal regulation of communication services that affected the procedure for maintaining separate records, the list of licensing conditions, connection services and traffic transmission. Changes have been made to the procedure for establishing maximum prices for connection and traffic transmission services, for example, when determining the price for connection services, the tariff unit is one point of connection or the size of state-regulated prices for communication services by operators occupying a significant position in the public network creates conditions for the reproduction of the functional equivalent in the part of the telecommunications network that is used with additional load. All this makes it possible to reimburse the costs of operating maintenance of the used part of the telecommunications network and include a reasonable rate of profit (profitability) from the capital used in the provision of such services.

For communication services and parts of the telecommunications network, as well as for all types of activities that are carried out and used to provide these services, operators must keep separate records of income and expenses. The procedure for maintaining separate records is determined by the federal executive body in the field of communications.

Prices for household and utility services- this is a payment for services provided to the population by household and utility services, for example, prices for laundries, hairdressers, dry cleaners, prices for clothing and shoe repairs, as well as fees for apartments, telephones, etc.

Geographically, the classification of prices for household and utility services is divided into:

1) prices are standard (uniform throughout the country);

2) prices are local (regional).

Zone prices (uniform throughout the country) are established only for the main types of products and through government regulation; these types of products include energy resources, electricity, rent, transport and some others.

Prices are local (regional) are determined by regional authorities and management; in the process of formation, these prices are guided by production and sales costs that are characteristic of a given region. Regional are prices and tariffs for most utilities and household services provided to the population, as well as purchase prices for agricultural products.

Determination of the current internal price of a security is based on the dynamics of its price in the past. Current prices financial assets reflect all relevant information regarding the future of securities and assume that the current price always absorbs all the necessary additional information, it concentrates all future expectations. The most common is the fundamentalist theory of estimating the theoretical value of financial assets. There are three main theories of financial asset valuation: fundamentalist, technocratic and guesswork.

Securities have inherent value, which is quantified as the discounted value of future earnings associated with that security (fundamentalist valuation).

To determine the current intrinsic value of a security, it is enough to know only the dynamics of its price in the past, as technocrats believe.

The best analysis method is the one that makes money - all investors agree on this. And many organizations employ people with both investment mindsets.

Those who use guesswork assume that current prices of financial assets flexibly reflect all relevant information, including the future of the security. However, sometimes both approaches are useless. For example, an investor decided to buy a block of freely floated shares from an organization, and the overvaluation (undervaluation) of the “target” does not matter to him. Since for short transactions with liquid instruments, technical analysis is better suited, which can be applied without forgetting about the fundamental factors acting on the market, but for strategic investments a fundamental assessment is needed.

Introduction

1. Basics of developing pricing policy and pricing strategy for an enterprise

1.1. Price system. Types of prices and their structure

1.2. Pricing policy as an element of the overall enterprise strategy

1.3. Firm's pricing strategy

1.4. The importance of a company’s pricing strategy in increasing the competitiveness of an enterprise

2. Technical and economic characteristics of the enterprise’s activities

2.1. Brief description of trading activities

2.2. Main technical and economic indicators of the organization's activities

2.3. Assessment of the financial results of the enterprise

3. Price as an element of the Severny store strategy

3.1. Pricing methodology in the Severny store

3.2. Competitive pricing strategy for the Severny store

3.3. Tactical aspects of the pricing strategy in the Severny store

Conclusion

References

Applications

Introduction

The price of a product is not only an important factor for an enterprise that determines its profit, but also a condition for the successful sale of goods. In many dictionaries, price is interpreted as a monetary expression of the cost of a unit of goods. In market conditions, the role of price for any commercial organization increases sharply. This circumstance is due to many reasons.

The price level determines: the amount of profit of a commercial organization; competitiveness of the organization and its products; financial stability of the enterprise.

Fundamentally new approaches to pricing methods are emerging. The decisive role in price formation belongs to supply and demand, utility and quality of the product. The functions of government bodies in setting and regulating prices are significantly limited.

In a market economy, there are many mechanisms for regulating the activities of an enterprise, but what is fundamentally important is that they are based on the use of economic methods that create conditions for increasing the interest of the enterprise in meeting the needs of society. In conditions of market relations, regulation of reproduction is carried out along with other economic laws by the law of value, which operates through the mechanism of prices and pricing. Therefore, the development of market pricing requires a fundamental change in the principles of price formation and the price model.

The pricing mechanism in market conditions is manifested through prices and their dynamics. Price dynamics are formed under the influence of two important factors – strategic and tactical. In market conditions, price dynamics will be formed unpredictably, and it is necessary to deeply and carefully study all market factors and learn how to use them correctly.

Price is one of the main factors influencing the amount of profit received, as well as a number of other quantitative and qualitative indicators of the enterprise: profitability, turnover, competitiveness, market share, etc. Moreover, by setting one or another price level, an enterprise can achieve various goals depending on the current market situation: the survival of the company, maximizing growth rates, increasing sales volumes, stabilizing or increasing market share, etc.

The decisions made by the company's management in the field of pricing are among the most complex and responsible, since they can not only worsen financial and economic performance, but also lead the enterprise to bankruptcy. In addition, pricing decisions can have long-term consequences for consumers, dealers, and competitors, many of which are difficult to predict and, accordingly, to quickly prevent undesirable trends after they appear.

This is especially true in the current Russian conditions, when, due to a decrease in purchasing power and increasing competition in the market, the choice of an effective pricing method becomes of greatest importance for the successful operation of an enterprise.

The economic literature describes a fairly large number of pricing methods used by both foreign and Russian enterprises in practice. But it is quite difficult to imagine the entire set of pricing methods classified according to certain criteria.

The purpose of the thesis is to consider the pricing strategy using the example of the Severny grocery store, specializing in the retail sale of food products to the public.

The objectives of the thesis are the following:

Conducting a technical and economic analysis of the activities of the Severny store;

Study of the theoretical foundations of strategic pricing of an enterprise;

Consideration of the applied pricing methods and pricing strategy in the Severny store.

The sources for writing the project were the works of domestic and foreign authors on the problems of forming the pricing policy of an enterprise, periodicals, reference literature, and financial statements of the Severny store for 2001-2003.

1.1. Price system. Types of prices and their structure

Prices and finance operate in close interrelation in the process of cost distribution. Prices are the basis of the financial method of cost distribution, and finance, based on the proportions of distribution established on the basis of prices (their structure), is a tool that implements these proportions, adjusting them taking into account the conditions of economic development.

Price is one of the central links of the market mechanism. At the same time, the price itself consists of financial categories - cost, profit, value added tax, excise tax and some other elements. The correctness of price determination will depend on how and how reliably these financial categories are determined and calculated.

The structure and level of prices, despite the freedom of their formation and the influence of many market factors on them, are largely determined by financial standards and the need for financial sources both for the state and for each individual enterprise or firm. Thus, taxes and other obligatory payments that form the income of the state as a whole and individual regions are reimbursed partly from cost (for example, payments for water, wood, etc.), partly from profit or are a premium to the price (excise tax). On the other hand, realized prices form the revenue and cash savings of the enterprise (firm), which are the sources of the above-mentioned mandatory payments and financial resources of the company.

The price level and structure determine the primary income of the enterprise and its employees, to which the proceeds received into its current account are distributed. But already at the stage of exchange, through the deviation of prices from value, the process of redistribution of income takes place.

In the process of distributing revenue through the formation of various monetary funds of the enterprise and contributions to the budget system, secondary incomes of workers, the enterprise itself and the state are formed. Further redistribution is carried out in the process of using budgetary funds and extra-budgetary funds, enterprise finances and non-production organizations.

The redistribution process ends with the formation of final income at the consumption stage with the help of prices for consumed means of production and consumer goods.

Let us show the relationship between prices and financial categories using a specific example. The selling price of the carpet is 300,000 rubles, including the amount of excise tax (25% rate of the selling price) - 50,000 rubles. The amount of value added tax (at a rate of 20%) is 60,000 rubles. (300,000 x 0.20 = 60,000). Store account: (300,000 + 60,000) -360,000 rub.

From this example, in particular, it is clear that the excise tax is included in the base for calculating value added tax.

Let's consider another example with the procedure for calculating and paying VAT.

Let's assume that the company purchased raw materials, materials and components for 500,000 rubles. and transferred the VAT amount to the supplier in the amount of 100,000, based on a rate of 20% (500,000 x 0.2 = 100,000). Having manufactured products from the received materials, the company sells them at free selling prices in the amount of 1,200,000 rubles. At the same time, she invoices an additional VAT of 240,000 rubles. (1,200,000 x 0.2 = 240,000).

The manufacturer will transfer to the budget the difference between the amount of VAT received from the buyer of its products and the amount of VAT paid to suppliers of raw materials, materials and components, i.e. 140,000 (240,000 - 100,000 = 140,000).

We will also show the system of payments between enterprises that supply each other with their products and their relationship with the budget using an example. The following data is available (Table 1.1).

Table 1.1

Data on the system of payments between enterprises, thousand rubles.

Pricing strategy: how to fight for customers while increasing business profitability

• price - price, discounts.

Pricing policy is an important element of the strategy of any mature and developing company, since pricing directly affects the financial results of the business. Before setting the price on the shelf, it is important to determine the main goals and principles of pricing, evaluate the strengths and weaknesses of both the product and the store, external and internal factors, and the competitive environment. A structured approach to pricing will lead to increased financial efficiency, and the first step to achieving your goals is choosing the right strategic approach to pricing. Business expert of the BI department of KORUS Consulting Group of Companies Sergey Vorobyov spoke about what pricing strategies there are, the benefits and disadvantages of one or another approach, and also shared how to choose the right pricing policy for your business and thereby increase business profitability.

Our country switched to a market economy just a couple of decades ago. The previously global task of planning and distributing products became private; the market was filled with many small participants who had to learn to solve it on their own and, as a rule, with improvised means. Gradually, small players became first large regional ones, and then giant federal ones. The dynamic growth of the retail sector cultivated the development of technologies and processes, without which it was impossible to manage the emerging networks with a vast geography. Many time-tested technologies were borrowed from Western colleagues. Thus, approaches to retail trade management have become entrenched in the concept of “retail” in our country.

As soon as the capacity of the retail market reached a critical level, a competitive battlefield unfolded before the participants, where the most effective player wins. But how is this efficiency measured, and how can it be improved?

The goals of the retail business (within the issue of its efficiency) were formed a long time ago and remain unchanged: minimizing costs and maximizing revenue. Costs are reduced mainly under the influence of internal factors (optimization of logistics, payroll, rent, operating costs, etc.), and revenue directly depends on the object of any retail trade - the buyer and his needs. The one who satisfies them most fully and quickly adapts to their changes and takes a leading position. The buyer himself determines where to satisfy his needs, and who can cover them with the highest quality. On what principles does the buyer make such a choice?

In marketing, there is a 4P theory that describes why a consumer chooses a particular seller of goods or services:

• place - location, convenience of location, accessibility;
• product - services or assortment, its breadth and quality;
• promotion - promotion, advertising;
• price - price, discounts.

Here lies the key to the consumer's heart. These four points act as weapons in the fight for the buyer, and a competitive advantage in each/any of them increases the business efficiency mentioned above. Given the large number of players in the market, their wide geography and diversity, the leading role in achieving advantage is played by technologies and business processes that allow receiving, processing, analyzing information, forming and implementing the company’s strategy and tactics to gain the desired market share. That is why in recent years the issue of developing a conceptual approach to each 4P factor, supported by technical capabilities, has become especially acute.

By setting prices for goods without preliminary analysis of the market, demand, competitors and purchasing power, you risk going bankrupt. To work for a profit, you need to understand where the retail price comes from and why a properly organized sale of goods at a price below the purchase price never leads to losses.

What should be included in the retail price?

The formation of the retail price is mainly influenced by: the cost of the product; costs of its delivery from production to the final buyer; the ratio of demand to the volume of supply of the product on the market; uniqueness of the offer; VAT; purchasing power.

At spontaneous markets and rural fairs, pricing is still popular based on the principle of multiplying the purchasing wholesale cost by two. We bought it for 100 rubles, sold it for 200 rubles, and it didn’t seem to be at a loss. But this rarely works in retail, when a 100% markup does not cover the costs of delivery, rental of retail space, VAT and other expenses.

The retail price should include purchase and delivery costs. Further, a markup on the uniqueness of the product would be appropriate when buyers simply do not have the opportunity to buy the product offered elsewhere. But it is also important to take into account whether the product being evaluated is in sufficient demand and whether customers have the opportunity to pay for it as much as indicated on the price tag. Additionally, the amount includes VAT, calculated using the classic formula. And only after analyzing the market, competitors, studying the audience, creating a strategic sales plan and other factors, the final figure on the price tag is collected.

How to evaluate the effectiveness of pricing?

Price efficiency needs constant monitoring. If the purchasing power of the audience, exchange rates, inflation and other manifestations of changes in market conditions decrease, price tags are subject to adjustment. In addition, there are subjective factors, when fixed, the retail outlet must change the prices of goods in order to avoid a strong decrease in profitability.

Customer reaction assessment

The buyer will not always go where it is cheaper. Therefore, an unplanned decrease in customer flow is not a reason to change price tags. Sometimes it works much more effectively: improving the quality of service; expansion of the target audience; expansion of delivery geography; change in promotion strategy.

Therefore, for effective analysis it is necessary not only to observe processes, but also to understand the reasons for their occurrence. Thus, an increase in the price of a product can be perceived by the client as an incentive to buy it urgently, because “if it goes up in price, it means it will be sold out quickly.” A price reduction, on the contrary, in a number of cases leads to negative consequences, especially in the sales of high-price segment goods, the target audience of which accepts it with the thought: “It’s getting cheaper, which means no one will take it.”

Assessing competitors' prices

In the retail trade of consumer goods, it is especially important to closely monitor competitors' prices. This is especially true for products that sell well. Sometimes even a slight reduction in a competitor’s prices for peas for Olivier on the eve of the New Year can help him take away the lion’s share of buyers who, in addition to peas, will buy other necessary goods for the holiday table at his outlet, even if their prices are much higher higher than yours.

Market assessment of suppliers/manufacturers

If there is adequate demand for a product, you can safely raise its price before the manufacturer decides to abandon its production. There can be a lot of reasons for refusal - from the transition to the production of an improved version to the closure of production facilities. Large retailers, in addition to monitoring competitors’ prices, also monitor the prices of producers of raw materials for the goods they purchase for retail sale in order to always be “in the know.”

Most Popular Retail Pricing Strategies

There are two of them: EDLP and H/LP.

EDLP's strategy is to maintain a consistently low price. It works great in many retail chains with a large customer flow. An example of this is the ATB supermarket chain (Ukraine). The distribution of sales points and consistently low prices for vegetables, fruits and essential products makes the retailer one of the leaders in the retail grocery market in a number of regions of the country.

H/LP strategy - reasonable price dynamics between the marks: “very cheap” and “very expensive”. An equally effective strategy for the domestic market. The best places to increase sales by planning sales according to this strategy are so-called “one-price stores.” As an example, we can take the FIX Price network, which has a wide selection of goods with a single price tag. As a rule, a client who sees a certain product that costs much less than in a neighboring retail outlet lulls his guard and believes that everything is cheaper here. In fact, about half of the product items are sold at a significant markup. Due to the correct balance, the network develops.

Basic pricing methods

If there are only two retail pricing strategies, then there are three ways, that is, orientation vectors for a retail enterprise: by cost; according to demand; according to the market.

The first cost-based pricing method is popular in the trade of groceries, household chemicals, and basic necessities. Competition in the niche is high, so creating price tags based on the costs of purchasing, delivering, storing and selling goods is more profitable.

Setting prices depending on demand is appropriate in the niche of clothing, shoes, automotive products, and sports equipment. Demand for certain niche products changes seasonally, and may also be affected by special events. Thus, the 2014 Olympics dramatically increased the demand for sportswear and shoes with competition symbols, which also stimulated an increase in prices in the segment.

Market-oriented means that the price of a product is collected according to the prices of substitute and related products. Some household chemical stores use this strategy when introducing new products to the market.

An example of a retail chain with a competent approach to setting retail prices:

The chain of grocery supermarkets "Magnit" operates according to the H/LP strategy. While maintaining a single low price for the main groups of goods, the retailer offers a number of goods with a lower level of demand, but higher prices. A competent focus on demand is obvious, which is also proven by the location of retail outlets (most often in residential areas, in places of average traffic). The results of regular monitoring of competitors are also noticeable, which is reflected in a positive way for the buyer on the price tags of products, the range of which is decreasing in competitive retail chains.

Instead of conclusions

The price of a product consists of the costs (financial, resource) of delivering it to the end consumer. The price of a product may change depending on changes in its value, demand, economic situation and many other factors. And for correct pricing, regular monitoring of audience loyalty, competitors’ actions and the state of the economic environment of the market should be carried out. There is no single pricing formula for retail; each group of goods is influenced by different factors, which make their own adjustments to the figure on the price tag.