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Pricing - Yerukhimovich IL

4.2. Types of prices by the degree of accounting for costs and profits

Depending on the channels of movement of goods from producer to consumer and accounting for the cost of production and marketing costs, as well as profits, prices are divided into wholesale and retail.

Distinguish wholesale prices for products for industrial and technical purposes and for consumer goods. Wholesale prices for production products have a wide scope and are final, and consumer goods - intermediate. Their sphere of operation is narrowed by the framework of individual industries (sub-sectors) and industries, since on the market, direct consumers acquire them at market final prices.

The production goods can be sold directly to consumers (at the wholesale price of the producer) and through intermediaries (at the price of wholesale trade).

At the wholesale prices of the manufacturer, the enterprise sells its products to other enterprises, as well as to wholesalers (supply and distribution organizations). These prices are used at enterprises for planning, accounting and analysis of goods and products sold, profits and other cost indicators of the enterprise, as well as in calculations of the economic efficiency of production, investment projects for its technical re-equipment, the appropriateness of obtaining loans,

Wholesale prices include the wholesale price of the producer, as well as the costs and profits of the supply and marketing organization that carries out the wholesale sale of goods. The costs of such organizations include loading, unloading, storing, storing, sorting, finalizing the products to customer requirements (threading, cutting, sharpening, etc.), depreciation of fixed assets, heating costs, lighting, energy costs for technological needs and Other

To wholesale prices are those for which agricultural products are purchased from agricultural enterprises. They are called purchasing. The peculiarity of these prices is the differentiation of their level in the natural and climatic zones, and in some cases also the intrazonal differentiation.

The variety of wholesale prices in a market economy is the price of forward transactions used in transactions on the exchange. They, along with the ratio of supply and demand to the time of delivery of goods take into account also the interest for the loan, the costs of financing the exchange transaction, the costs of insurance and storage of goods, commission brokers. Under normal conditions, prices for forward transactions are usually higher than the price for a cash commodity.

Retail prices include wholesale prices , costs and profits of trade organizations. If the goods enter the trade organizations directly from the manufacturer, then the retail price consists of the wholesale price of the producer and the trade mark-up. If the channel for the movement of goods from the producer to the final consumer passes through the supply and marketing organizations, it is composed of the price of wholesale trade and retail trade margins. At retail prices, retail organizations and sellers in the free market sell goods to the end consumer - the population. A special kind of retail prices are the prices of commission and auction trading.

In conditions of transparency of borders, retail prices need coordination from individual states in order to protect local commodity markets from unreasonable commodity circulation.

The considered types of prices can be basic (basic) and limit.

Base prices are set for preliminary products of a certain purpose with fixed quality parameters. When delivering goods with parameters different from the basic ones, the price levels are determined by means of allowances and discounts to the base price, which take into account changes in the quality of the goods.

The commodity producer can set a limit price for new products, i.e., the maximum permissible, ensuring the interest of consumers in the use of new products.

The price at which large-scale commercial transactions with payments in freely convertible currency (SLE) are carried out, is called global. The world prices are export prices of the main suppliers of this product and import prices in the most important import centers. Commodities are determined by the main supplier countries, by finished products - leading firms - their manufacturers.

Considering the structure of wholesale and retail prices, it must be borne in mind that, in addition to cost and profit, they contain other elements in the form of VAT and excise duty. Goods that cross the border of Ukraine are subject to a separate tax - duty.