Pricing

Pricing - In practice, pricing is not carried out using “theoretical” models such as curve derivations for different market types, but rather using the “trial and error” method on the basis of market data, such as panel research, which provides clues for Receives different volume sales or market shares due to different pricing.

The pricing is based on the following basic considerations, which are applied in combination, with different weightings depending on the industry and market position:

1. Cost-oriented pricing:
Also called cost-plus pricing, is based on the idea that the price should ideally cover the full costs, or at least certain partial costs. The basis for calculating the price is the cost information from accounting. Different industries expect different surcharges depending on the profit target and cost situation.

2. Market-oriented pricing:
Companies orientate themselves on a market price, whereby either the following two influencing factors are fully or heavily taken into account at the same time, namely:
a) the competition or industry
b) consumer appreciation

Zu a): Durch die Wettbewerber ergibt sich eine Einschränkung der preispolitischen Spielräume. Die eigene Preisentscheidung kann in einer Market economy nicht ohne Berücksichtigung des Preis- und Leistungsangebots der Konkurrenten erfolgen. Ist die Leistung der Wettbewerber vergleichbar, so wird man sich etwa in der Preishöhe der Konkufrenz einordnen. Bei überlegener/schlechterer eigener Leistung ist der Preis entsprechend höher/niedriger als der des Wettbewerbs anzusiedeln.

Bei oligopolistischen Marktstrukturen folgen häufig kleinere Anbieter dem Preisführer, der nicht immer Marktführer sein muss. Man spricht hier auch vom Guide price der Konkurrenz.

Regarding b): Companies set the price on the basis of the perceived product value. Marketing is based on the value perceived by the consumer / user and not on the costs, which is also referred to as perceived value pricing. Due to a certain positioning, a product value is built up in the customer's perception by using the marketing mix, which is the basis for pricing.

The concept of target cost management is based on the estimation of a realizable market price. By subtracting the desired profit margin, the “permissible” costs result, which must not be exceeded.

Target pricing analyzes which production volume is necessary to achieve a certain result at a given market price. The experience curve plays a role here.

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Further explanations for the first letter "P"