Analysis of the pricing strategy of the organization

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Although the price of a product is only one of the marketing tools, it performs an extremely important function – it allows you to receive revenue from the sale of products. It is the prices that determine how successful the commercial activity of the enterprise will ultimately be.

If the pricing strategy is chosen correctly, it has a positive effect on both the competitiveness of goods and the efficiency of production and sales activities.

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In addition, price often becomes a decisive factor that influences the choice of buyers. It acts as a means of forming relationships between the manufacturer and consumers. Finally, it is a powerful weapon against competing companies.

Price is one of the controllable factors of marketing. A serious approach to creating a pricing strategy can be attributed to the most important tasks facing the enterprise. Particular attention should be paid to the relationship between the general and pricing marketing strategy.

There are many different pricing strategies used in marketing practice.

The process of developing a product pricing strategy includes several interrelated stages:

Definition of external factors

Setting Pricing Goals

Choosing a pricing method

Formulation of the pricing strategy of the enterprise

Once the price of a product has been determined, the next question to answer is: how do you think it should change? Should it rise or fall? And how – in spurts or gradually? Which type of change will be more beneficial to the enterprise in achieving its commercial goals? The answers to these questions form the pricing strategy.

Pricing strategy is the choice of one of the options for changing the initial price in accordance with market conditions, which best suits the enterprise's goals.

To determine the pricing strategy, it is important for what kind of product the price is being set: one that has been on the market for a long time or one that has just appeared.

The setting of the price is largely influenced by external factors that the enterprise cannot influence:

in some cases, such reasons limit the enterprise's freedom in setting prices;

in others they influence pricing, but only slightly;

thirdly, they significantly expand the capabilities of the enterprise.

Based on the results of the first stage of developing a pricing strategy, the enterprise must determine the limits of its freedom in setting prices for the goods it sells.

Case: VT-metall
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There are two main theories of price. Supporters of the first believe that price is the cost of goods. Their opponents are sure that price is the amount that the consumer is willing to pay for the product he needs. It is believed that price is the cost of goods expressed in monetary units.

Pricing includes the entire process of forming the price of a product or service. It is represented by two basic systems:

centralized, when prices are formed by government bodies based on production and sales costs;

market, in which the price is determined on the basis of supply and demand.

Cost is understood as labor costs embodied in a commodity, but not any, but those that correspond to average conditions, skills and intensity of work for the current period. Each product appears as a result of labor, which makes all manufactured goods comparable and commensurable.

At the same time, labor also loses its specificity, becomes homogeneous, abstract, as it is called in economic theory.

It can be said that the ratio of the values ​​of different goods is the ratio of the quantities of abstract labor reflected in them. They determine the real proportions for the exchange of goods.