home Finance Books Pricing - Yerukhimovich IL

Pricing - Yerukhimovich IL

7.8. Establishment of differentiated prices

In many cases, the manufacturer offers products of a certain nomenclature, in which there may be several types of interchangeable products. In this case, the problem arises of the differentiation of prices for goods on various grounds: the quality of the goods, the assortment, additional accessories,

The quality of the product is characterized by its inherent parameters. The quality level is determined by the ratio of the quality parameters of the analyzed product with the base values ​​of the corresponding parameters. As the basic parameters of standards, previously achieved indicators, the quality parameters of a similar product of competitors, the best domestic or foreign samples, etc., can be used.

To quantify the quality of products, the integral index (index) of quality is calculated as the product of individual indices.

Prices for the same goods of different quality are defined as the product of the base price (CB) by the quality index (Ik) and differentiated depending on the quantitative assessment of the quality of the goods of own production and the goods of competitors in the market.

For example, the commodity producer for 1 ton of electrolytic copper set the price of 950 UAH. With a purity of 99% copper. The copper content fluctuates within ± 0.8%.

At the date of purchase, the copper content was 99.3%. Then the price of 1 ton of electrolyte copper in accordance with the formula U1 = Цб • Icu will be 950 * 0 993 / 0.99 = 952.85 UAH.

Thus, the stage of price differentiation with a change in the purity of the copper content by 0.1% is ± 0.95 UAH.

Stepwise differentiation of prices is also used when pricing for products of the assortment range, which differ from the base product by additional consumer properties. In this case, the establishment of the stage of differentiation must take into account the change in production costs, consumer perception of the goods, the prices of competitors.

In a number of industries, so-called optional accessories are produced, which are used together with the main product. In order to increase the competitiveness of commercial offers, the commodity producer resorts to so-called system sales, when the buyer is offered the main product (for example, a tractor, camera, etc.) and various components that supplement and accompany the goods (for example, a set of hinged and trailed implements, Optics, tripods, etc.). Producers of basic goods assign low prices to them, compensating them with higher prices for supplies.

Firms that do not produce mandatory accessories need to set a higher price for the main product in order to obtain a given profit. This differentiation of prices allows the commodity producer to increase sales volume while reducing costs of production and to leave the profit from sales at least at the achieved level or increase its amount.

The differentiation of prices takes into account the differences not only with respect to the costs of production, but also with respect to the demand and the correlation of the value of the goods (respectively, prices) for consumers. Differentiated prices are established in various forms: taking into account the varieties of buyers, as well as the geographic approach to pricing.

An important sphere of the company's activity is the consideration of traditions, national and religious characteristics of customers, the ability to use elements of the "prestigious" attractiveness of the goods. So, given the traditional love of the Japanese to the golden color, companies that sell chocolate in Japan, change the color of the package. In the US automobile market, cars of one firm are sold in different designs, considering that buyers can have different social status, and also reside in the city or in the countryside. Hence their requirements for the car.

The theoretical marketing slogan "to reach everyone" requires a differentiated approach to pricing and has a huge market potential. In the practice of pricing, the differentiation of prices by geographical principle is quite widespread. Depending on the goals of the commodity producer, the price for the goods is established in the place of its origin and includes only the costs and profit of the producer; The commodity producer, taking into account the basic terms of delivery, can assume part of the transportation costs, adding them to their costs and profits. This method can increase sales and reduce production costs; The enterprise (firm) can differentiate the prices for the certain goods on zones: in process of remoteness of a zone from the enterprise-supplier the price for the goods will increase.

The variety of differentiated prices is the so-called discriminatory prices. Their essence lies in the fact that the commodity producer establishes step-by-step prices for the same goods, not taking into account the difference in production costs: the prices of tickets to theaters, cinemas, museums vary depending on the age of the spectators, hall areas, etc.