Price Policy of the Enterprise

Pricing in the enterprise consists of several interrelated stages: the collection and analysis of information on the market, the formulation and justification of the objectives of price policy for a certain period, the choice of methods for conducting it, setting the price level and developing a system of discounts and allowances, adjusting the price policy depending on Market conjuncture.

Pricing policy of the enterprise is a mechanism for making certain decisions regarding the behavior of an enterprise in the market to achieve the main objectives of economic activity.

There are three main goals that enterprises strive to achieve by implementing a pricing policy: ensuring sales, keeping the market and maximizing profits. The choice of the goal determines the essence, which will characterize the company's pricing strategy for a certain period.

The main primary goal of enterprises that are experiencing competition in the market is to ensure the sale of their products. This is especially important in the conditions when there are more and more analogues of products offered by other manufacturers. The choice of this goal is due to the fact that consumer demand in an abundance of goods is elastic in price. Or this goal can be determined by the desire of the enterprise and to maximize sales and increase the total profit by reducing the income from each unit of goods sold. If the enterprise is ready to understate prices, it will help expand sales and capture a wider niche in the market.

If an enterprise tends to maximize profits, then it must maximize the current profit. This can be done after assessing the demand and costs, based on which you can choose a price that is able to maximize the cost recovery.

To keep the market through price policy, it is necessary to maintain the existing position in the market, which requires taking measures to reduce competition or prevent a decline in sales.

The pricing policy of the enterprise is a complex phenomenon, it is subject to the influence of many different factors. Therefore, the choice of the general direction in this policy, the basic approaches to price formation, the particularity of the accompanied sale of the service, and other areas should be justified by the data obtained as a result of analyzing the data of a detailed marketing study.

The prices and pricing policy of the enterprise are one of the most important components of the company's marketing. Prices directly depend on other aspects of the organization's activities, they largely determine commercial results.

The sense of price policy is to establish prices for products to master as much of the market share and achieve the planned level of profit for solving strategic development problems.

The company's pricing policy links all private decisions (breakdown of prices by assortment, price breaks, prices for new products, linking prices with competitors, system of discounts, etc.) into an integrated (single) system.

Each enterprise approaches the problems of pricing depending on the characteristics of its own economic realities. A great influence on the solution of these issues is provided by sales services, heads of economic and accounting services.

To establish the prices for products, the company relies on marketing research, and also takes into account the degree of state regulation, the dynamics of demand, the impact of competition, the needs of wholesale buyers, and other factors. At the same time, economic criteria of internal and external nature are taken into account.

Internal criteria can be the specifics of products, production process, market tactics, production mobility, advertising, sales service, etc.

External criteria can be political instability, lack of resources, inflation dynamics, the nature of consumer demand, etc.