Pricing strategy methods are based on the following factors:
accounting of expenses in cost formation;
break-even pricing.
Let's take a closer look at each of these methods.
Costly
The essence of this method facebook database of setting prices is that to all expenses associated with the production, distribution, sales and promotion of products, a certain markup is added in the form of profit that the company wants to receive from its sale.
The main advantage of this method is its ease of use: to determine the price, it is enough to calculate the cost price of a unit of goods. The main disadvantage of this method is the almost complete disregard of such factors as current market conditions, the level of competition, the demands and needs of potential buyers.
Methods of price formation
The cost price includes:
Expenses for production/purchase of products. If the enterprise is not a manufacturer of goods, but purchases finished products, then the costs should also include expenses related to transportation and storage of purchased products.
Expenses of the enterprise itself, namely the costs of:
payment of rent for production, office and warehouse premises;
provision of labor activities: payment for Internet and telephony, office expenses, services for setting up and repairing computers and office equipment;
remuneration of all employees of the company;
transfer of insurance contributions (22% to the Pension Fund; 2.9% to the Social Insurance Fund for social security; 5.1% to the Federal Compulsory Medical Insurance Fund for medical care);
consulting and information services (for example, contacting lawyers, accountants);
maintenance of office and industrial premises (payment of utility bills, repair work, cleaning).
Let's consider the development of a pricing strategy using a specific example: Zvezda LLC purchases 80 units of product X at 70 rubles and 40 units of Y at 35 rubles. The company sells out the entire purchased batch of products within one month. The rent for the sales area for the store is 6,000 rubles per month.
Since two different products are sold in the occupied area, it is incorrect to include payment for this area in the cost of only one product – it must be distributed proportionally to the purchase price of the product:
Product X. Purchase costs: RUB 70 * 80 units = RUB 5,600. Including rent in cost price: RUB 5,600 / (5,600 + 1,400) * 6,000 = RUB 4,800.
Product Y. Purchase costs: RUB 35 * 40 units = RUB 1,400. Including rent in cost price: RUB 1,400 / (5,600 + 1,400) * 6,000 = RUB 1,200.
Thus, 60 rubles (4,800 rubles / 80 units) must be added to the cost price of one unit of product X, and 30 rubles (1,200 rubles / 40 units) to Y.
After determining the full cost price (Purchase costs + Expenses of the enterprise itself), in order to calculate the selling price, it is necessary to add to this amount a markup, which will constitute the company's profit from the sale of this product.
Factors influencing the choice of pricing strategy