Planning Motivation Control

Retail pricing. Pricing in online stores - the correct markup on goods What to include in the price in retail

As a type of entrepreneurial activity, trade is the resale of goods. Trade organizations, not being producers of products, act as intermediate links between manufacturers and potential and real buyers. At the same time, pricing in trade is based mainly on the principle of making a profit. Since the main source of profit is a correctly formed price, it plays one of the most important roles in the entire process of economic activity in the trading area. Therefore, pricing in trade is one of the priority activities of specialists whose competence is the sphere of ensuring the interests of the company and its strategic development.

Pricing in trade is based on such concepts as structure, price composition, prices for similar goods, price index, distribution costs, competitor prices, profit margins, and others. The pricing mechanism provides for various regularities, pricing methods and pricing principles (justification, price unity, continuity, control, purposefulness). To set prices for goods, a trade organization must take into account a whole range of factors that can influence the price and its level.

The pricing mechanism is based on the principles and methods by which prices are formed. They are mediated by the pricing policy inherent in a particular company, which is expressed in price management techniques and psychological techniques for creating adequate price indicators. Price management techniques include discount systems, bonuses, savings systems, promotions, gifts, discount cards, etc. Psychological techniques are based on the properties of human nature and the knowledge that people often make irrational purchases.

Pricing in trade is mediated by a number of factors. First of all, it depends on the market niche occupied by the company. This may be a niche market of perfect competition or a so-called monopolistic market. In the first case, sellers practically do not influence prices, so the trading company needs to set prices that are approximately equal to the prices of competitors.

In a monopolistic market, the price is almost completely determined by the monopoly organization. In addition, it is very important in the process of pricing to take into account the general market situation and all its inherent temporary fluctuations. In a situation of stable demand in the market, the passive pricing mechanism can be successfully applied. Its essence boils down to strict adherence to costly methods of pricing without taking into account consumer preferences and market changes.

In a situation of a growing market, it is necessary to take into account the mood of consumers. Under these conditions, it is necessary to turn to active pricing, adapting to customers and mobile responding to market changes. Such a mechanism is characteristic of stock trading and similar areas that are subject to live changes in market conditions.

Price formation is also influenced by the stage of the life cycle of the product being sold. For new products, prices of a reconnaissance nature are set. With more stable demand, the price reaches a correspondingly higher level. And in conditions of market saturation, prices have to be lowered.

The stages of pricing include several positions. The first is the choice of pricing objectives (survival, market retention, or profit maximization).

Then the level of demand for the product is analyzed. Only after that you can proceed to the accounting and analysis of your own costs and the study of competitors' prices.

The next stage of pricing is the choice of the method of pricing and the transition to the appointment of optimal prices for the goods sold.

Pricing Management

  • 4. Price positioning
  • 5. Pricing tactics
  • 6. State regulation of prices

In a narrow sense, price is the amount of money asked for a good or service. In a broad sense, it is the sum of those values ​​that the consumer gives in exchange for the right to possess one or another value. Price is the only element of the marketing mix that is related to income, all other elements (product, promotion, distribution) are related to costs.

Typical mistakes of enterprises in the field of pricing:

  • * Too strong dependence of price on costs
  • * Prices are not revised due to changes in the market situation.
  • * Pricing does not take into account other elements of the marketing mix.
  • * Prices do not change depending on the properties of different products, market segments and purchase situations.
  • 1. External and internal pricing factors

External factors include:

1. The state of the market and demand (pricing in different types of markets, for markets with different elasticity, consumer perception of the price and value of the product)

C.E.S. = % change in quantity demanded / % change in prices

  • 2. Competitive environment (costs, prices, profitability of competitors…);
  • 3. Other factors (economic conditions, interests of intermediaries, influence of state bodies and social factors…).

Internal factors:

  • 1. Marketing goals (survival in the market, maximization of current profit, maximization of market share, partial coverage of costs ...);
  • 2. Marketing mix strategy;
  • 3. The size of production costs (fixed, variable, gross costs, taking into account the rate of return, marginal profit, etc.);
  • 4. Organization of pricing activities within the enterprise.
  • 2. Basic pricing methods

Cost Based Pricing

1) Cost + Markup Method: Unit Cost = Variable Costs + Fixed Costs / Estimated Sales V

Markup Price = Unit Cost / (1 - Desired Sales Revenue)

2) Break even analysis and target profit target: Break Even Volume = Price - Fixed Costs / Variable Costs

Pricing Based on Competitive Behavior

  • 1. Method based on the level of current prices;
  • 2. Method based on closed tenders. Pricing based on the perception of the value of the product by the consumer
  • 1. Analysis of the value of a new product

Consumers ---> Value -----> Price ----> Costs ----> Product

  • 2. Method of marketing estimates
  • 3. Typical pricing strategies

Cream skimming - a price higher than most buyers think a product of this value deserves. Breakthrough strategy (market penetration) - setting prices at a level lower than, according to most buyers, a product with a given value deserves.

Neutral strategy - setting prices based on a “fair”, according to most buyers, “price-value” ratio

  • 4. Price positioning
  • 1. Strategy of premium margins;
  • 2. Strategy of increased value significance;
  • 3. Savings strategy;
  • 4. Robbery strategy.
  • 5. Pricing tactics
  • * Pricing within the commodity nomenclature - the use of price targets, unprofitable leaders, setting prices for complementary goods, setting prices for mandatory accessories, setting prices for by-products of production.
  • * Geographic pricing - setting different prices depending on the location of the consumer.
  • * Setting prices with discounts and offsets. There are different types of discounts:
    • 1. discounts for cash payment, prepayment,
    • 2. discounts for the quantity or volume of goods purchased,
    • 3. functional discounts - discounts for trade channels,
    • 4. seasonal discounts - when buying goods in the off-season, which ensures more stable sales throughout the year,
    • 5. offsets - other types of discounts, for example, lower prices for a new product, subject to the delivery of the old one.
  • * Discriminatory prices. Conditions for price discrimination:
    • 1) the market should be easy to segment
    • 2) members of the segment with a low price cannot resell the goods to members of the segment with a high price
    • 3) Does not offend consumers
    • 4) Must not break the law
  • * Psychology of perception of price changes by consumers. Decreasing prices lead to various reactions of buyers, including opposite expected ones.
  • 6. State regulation of prices The Government of the Russian Federation and the federal executive authorities carry out price regulation in the markets of natural monopolies by determining prices (tariffs) or their maximum level for the following goods and services:
    • * Natural gas (except for sold to the population)
    • * Nuclear fuel products
    • * Electricity and heat energy
    • * Pumping and loading of oil
    • * Defense products
    • * Precious metals and stones
    • * Prosthetic and orthopedic products
    • * Transportation of goods, loading and unloading works on railway transport
    • * Transportation of passengers, luggage and mail by rail (except suburban traffic)
    • * Maintenance of aircraft, passengers and cargo at airports
    • * Individual postal services
    • * Communication services for broadcasting programs of Russian state television and radio organizations, etc.

The price is determined by the method of economically justified costs. For the calculation, the amount of the required gross revenue is determined, while taking into account:

  • a) costs associated with the provision of services by regulated entities,
  • b) deductions for depreciation of fixed assets,
  • c) standard profit.

The rate of return (profitability) on capital is determined by the regulatory body in accordance with the methodology for calculating the amount of economically justified costs and standard profit taken into account when forming regulated tariffs, approved by the Federal Tariff Service in the prescribed manner;

  • d) taxes and other obligatory payments and fees,
  • e) subsidies and subventions at the expense of the federal budget, the budgets of the constituent entities of the Russian Federation and municipalities.

Price discipline violations include:

  • * Overestimation of regulated prices and tariffs
  • * Violation by monopoly enterprises of the procedure for declaring free prices and tariffs, etc.

The purpose of the state control: prevent serious inflation, promote the creation of conditions for normal competition and the solution of urgent social problems. In this regard, a special role is assigned to: the tax authorities, the Committee for the Protection of Consumer Rights and Fas. In free markets, four factors are unethical and illegal in pricing:

  • * Misleading prices, such as price bait followed by switching, i.e. luring and imposing a more expensive product, or, for example, discounts from an inflated price.
  • * Price discrimination - different prices for different groups of buyers regardless of costs. However, if the firm proves that such a technique does not prevent competition, it is recognized as legal.
  • * Horizontal price fixing - an agreement between competitors to set prices at an artificially high level (vertical price fixing is legal; this is an agreement between links along the path of goods movement).
  • * Collusion of competitors on prices or their concerted actions with prices.

There is a possibility of government intervention in pricing in free markets in the form of state regulation of markups in exceptional cases related to macroeconomic force majeure.

In recent months, the owners of online stores have been facing an acute problem of pricing - suppliers regularly increase the purchase price, and buyers are trying to save money. To maintain competitiveness and achieve the required performance indicators, it is necessary to choose the optimal pricing mechanism.

How the cost of goods in an online store is formed

The cost of goods in an online store, as in any trading organization, is formed from the sum of the purchase price and the margin. If the supplier assigns the RRP (recommended retail price), then the task is simplified a bit - it is impossible to set the price below it, and usually it does not make sense to set it higher. When the price can be set independently, it is necessary to calculate and analyze several factors, for example:

  • fare;
  • telephony and internet;
  • payment to employees;
  • warehouse or office rental;
  • other expenses arising in the course of work.

Based on the planned sales volumes, a calculation is made - what profit must be obtained in order not to work at a loss, as well as the amount of allowable possible discounts. At the same time, the price should be attractive to buyers - lower than that of competitors.

It should also be borne in mind that the selling price for the same goods from suppliers may be different. Therefore, it is necessary to regularly monitor more profitable offers. You can reduce the purchase price in several ways:

  • constantly look for new suppliers, not only online, but also at various exhibitions and presentations;
  • monitor competitors' websites with a lower price - sometimes you can find supplier's watermarks on photos, and sometimes photos are loaded directly from his website;
  • try to look not for intermediaries involved in resale, but for direct manufacturers or dealers;
  • even if cooperation with the supplier continues for a long time, it is possible to agree on additional discounts and special conditions with him.

To ensure that the information on the website always remains up to date, you can use special services to track prices on the competitors' website, which will allow you to quickly change them if necessary.

You can form prices using several strategies:

  1. Applying periodic discounts. When using such a strategy, prices for goods decrease, for example, depending on seasonality or time of day. At the same time, this discount is predictable and buyers themselves know when there will be a reduction.
  2. Apply random discounts. Such a strategy does not allow buyers to predict a decrease in value, since this does not happen often. This way, shoppers who track prices regularly will buy at a discount, while casual shoppers will pay the full amount.
  3. Price discrimination. When using this strategy, the same product is offered to different buyers at different prices. For example, depending on the channel from which they came. But at the same time, it is important to make sure that buyers from different channels do not overlap.
  4. Market penetration. This strategy suits direct product manufacturers to a large extent. By increasing production volumes, the cost is reduced, which allows you to force out competitors.
  5. Differentiated pricing. Since buyers in an online store do not have the same level of income, it is possible to offer them the same product at a different price. This can be done, for example, by adding additional options.

Any of these strategies can be combined for maximum effectiveness.

Price Adjustment Tools

To adapt prices in accordance with changes in the market, maintain demand and fight competitors, they need to be adjusted regularly. This can be done in different ways:

  • geographical adaptation - change in the cost of goods depending on the region of sale. This takes into account the cost of delivery, the remoteness of the region, the demand in it and the shortage of products;
  • markup must be justified. Often the cost is increased based on the popularity of the product, as well as due to its limited release, novelty or other factors;
  • discount - reducing the cost to increase the attractiveness of the product in the eyes of the buyer. As already mentioned, they can be temporary, seasonal, as well as dealer, wholesale, partner, etc.;
  • use of loyalty programs - special offers that are developed to retain customers. This includes the issuance of discount cards, a point system, etc.

Another way to attract buyers is price provocations. At the same time, price changes are not used here at all, but only special promotions that evoke emotions among buyers. For example, a discount for presenting a competitor's discount card, etc.

How to painlessly increase the price of goods

Discounts, promotions, loyalty programs - all this only fuels the interest of buyers in goods. But sometimes the cost of goods needs to be increased, while not alienating customers. There are several ways to change prices while retaining customers:

  1. Alternative option. If it is necessary to increase the cost for some positions, then it is important to offer the buyer an alternative - albeit a slightly worse quality or with reduced functionality, but affordable.
  2. Donate profit. You can add a product to the assortment of an online store that will attract a large number of customers, but at the same time, do not bring profit at all. It makes sense to do this in those stores where the average number of purchased goods in one order is more than one. It is calculated that buyers will "finish" the basket with other purchases, the profit from which will cover the costs.
  3. Reduce the cost of the main product, but, at the same time, increase the consumables to it. For example - a vacuum cleaner and bags for it or filters.
    Proposal of accessories. The item is similar to the previous one - for all related products, the markup increases as much as possible.
  4. Sale of sets. In this case, the reception works in both directions - the goods can be completed, or, conversely, sold separately. If the price of a whole set is high, then the cost of individual goods sold from it can be increased. And vice versa, to complete sets of cheap and expensive goods, or equal in value.

Regardless of the chosen pricing strategy, the key to successful sales is the obligatory monitoring of competitors' prices and control of the expenditure side of the online store.

The marketing mix tool "price" includes issues related not only to the cost of goods sold, but also to other costs of the buyer. This refers to time, fare, emotional costs that arise in the process of making a purchase. Thus, the price means not only the cost of the product, but also its value to the consumer. The pricing strategy should be consistent with the positioning of the retailer, the strategy of behavior in relation to competitors and other elements of the marketing mix, should also take into account the pricing strategy of the manufacturer, used by him to achieve his goals.

Pricing in a retail trade enterprise is based on two main methods: cost-oriented, market-oriented. Orientation to costs, involves the determination by the retailer of the selling price of the goods as the sum of its purchase price and a fixed percentage of it. In market orientation, prices are set based on perceptions of buyers' willingness to pay for a given product. The main advantage of the cost method is that it allows you to achieve the target level of profit. It is fast, mechanistic and relatively simple. The advantage of the market method lies in its linkage with the concept of marketing, i.e. it takes into account both the desires and the possibilities of buyers. However, the practical implementation of the market method is associated with considerable difficulties, especially in trading companies, the range of which includes thousands of trade items, each of which requires individual pricing solutions. The optimal solution can be achieved by combining the cost and market approaches, when the first becomes the basis of the pricing strategy, and the second - a way to attract customers.

The goal of a pricing strategy is to find the right balance between the interests of the consumer and the interests of the company. In addition, the price should take into account the situation in the competitive market. There are two opposing pricing strategies in today's retail market: Daily Low Prices (DPRs) and High/Low Prices.

Retailers using the ENC strategy emphasize that their retail prices are constantly somewhere between the usual price level and the level of sales organized by competitors, and they do not always offer the cheapest goods. At certain points in time, the price may be higher than buying on sale in a competitor's store or in the wholesale market.

Advantages of this strategy: the threat of price wars is reduced, as buyers, realizing that prices are at an acceptable level, increase the one-time volume of purchases and visit the store more often; the need for advertising decreases, tk. low prices consistently attract buyers; may increase profits, tk. the store abandons the practice of significant discounts adopted in the strategy of high / low prices. The difficulty of implementing the SNC is that low prices must be maintained constantly, i.e. clothing should be sold cheaper than in department stores, and ordinary products (flour, milk, sugar) cheaper than in supermarkets.

Resellers with a high/low price strategy in some cases offer products at higher prices than those of SNC competitors, but they often run sales and actively advertise them. The strengths of the high/low price strategy are as follows: the same product is intended for different segments. At the market entry stage, it is offered to "superinnovators" and "innovators" at high prices, and at the end of the season to "conservatives" and "moderate, frugal buyers" attracted by the cheapness of the product.

Although the retailer's main pricing strategy is most often a combination of EPR and high/low prices, various price incentives are often offered to customers. Very popular tools to attract buyers through price incentives are: coupons, discounts, plastic cards, price leadership, multiple pricing, price equalization, odd and non-round prices, etc. All of them are determined by the main pricing strategy.

Coupons are certificates that entitle their holders to a reduced price or other benefit when purchasing a product or service. They are mainly used for consumer goods. Coupons are published in newspapers and magazines (often after advertising the relevant product), they are laid out in consumer mailboxes, sent by mail, applied directly to goods, handed out to passers-by. Coupons inform consumers about the product, encourage them to make purchases, draw their attention to a particular store, enhancing its competitive advantage, and increase the intensity of use of the product. Most often, with the help of coupons, they try to attract new customers, attracting a regular customer is not always advisable and is even negative, since the total number of purchases does not increase, and the profit from the sale of a unit of goods decreases.

Discounts from the price - this is the part of the price that is returned to the buyer of the goods. The retailer carefully calculates the system of price discounts, they are beneficial to him when working with product suppliers and, under certain conditions, when settling accounts with end consumers to create competitive advantages.

Plastic cards are used by firms that work with high margins, which allow them to painlessly reduce prices for any buyer, or by firms conducting an advertising campaign, where a plastic card is considered as an element of advertising. The card entitles you to a discount for a certain amount or, more often, for a certain or floating percentage on your next purchase. Floating interest may change its performance depending on the day of the week, season, the introduction of additional benefits, or increase in proportion to the amount for which the buyer has purchased goods from a trading company over a long period.

The scheme of club plastic cards differs from the previous method of providing discounts for the next purchase only in that the organization of the club, schemes and distribution of the cards are taken over by a specialized third-party company (for example, a joint project of the Karusel retail chain and Alfa-Bank - the “Visa-Alfa-Bank Magic Card”, which allows you to pay in any stores, pharmacies, restaurants, beauty salons and other trade and service enterprises around the world and at the same time accumulate additional points that can be spent in the Karusel network or the Malina accumulative program, which allows you to accumulate points by making purchases in partner merchants of this program, including the Citystore supermarket).

Price leadership (brand strategies) in which a retailer sets prices for certain products below the usual level, hoping that this event will attract additional customers. This will increase the sales of other goods in the store, as the buyer gets the impression that the prices in the store are lower than in others. Sometimes such goods are called unprofitable leaders. Although, in order to be unprofitable, such goods must be sold at a price below cost, which usually does not happen. As an "inviting" product, everyday goods are used, the prices of which are well known to buyers. In supermarkets, for example, eggs, milk, sunflower oil are usually used as "inviting" goods. The "inviting" product strategy is designed for price-sensitive buyers.

Multiple pricing is that homogeneous goods of different weight (volume) are sold at different prices. For example, 100 gr. a package of coffee of any brand will always cost more (in terms of 100 grams of mass) than the same coffee, but in a 200-gram can. This method is aimed at increasing the volume of sales of goods. Its peculiarity is that it allows buyers to stock some goods for future use, consider the purchase profitable, and ultimately leads to an increase in the consumption of goods by the buyer.

Multidimensional pricing is used to "push" a product and is aimed at getting the buyer to buy two or more types of products at the same time. For example, in this way: "three for five hundred rubles."

With the price line alignment method, the store offers different levels of predetermined price items. The buyer is left to choose between cheap, or medium-priced, or expensive goods. Moreover, on the shelves of the store, goods are grouped by price levels. When purchasing goods, retailers choose those that correspond to the chosen price levels. It is easier for the buyer to make a choice, since he does not get confused in a large number of brands. Buying takes less time.

Odd and non-round prices are a price concept with psychological ramifications. Such pricing is inefficient for "pre-selection" items, which require some thought to purchase. (For example, when buying a car, it doesn't really matter whether the buyer has to pay $5,995 or $6,000 for it.) Non-round prices are associated with the buyer with a cheap hot item.

To improve the visual perception of prices, its adjustment is used (for example, setting a price of 499 instead of 500).

The big book of the store manager 2.0. New technologies Krok Gulfira

Retail pricing principles

A retail enterprise, like any enterprise in modern market conditions, uses the described pricing strategies. The most effective can be considered pricing that optimally combines all three of the described strategies (Figure 2. 23).

Retail sales and the assortment of goods in the store differ from other types of sales (primarily from wholesale), so there is also a specific pricing in retail. Let's look at some of the distinguishing features.

Fig 2. 23. Efficient pricing.

Establishing prices for newly introduced goods. In the literal sense of the word, pricing is used in retail when setting the price for a product newly introduced into the assortment; in all other cases, the existing price is adjusted - its decrease or increase.

From the point of view of effective pricing, when introducing a new product to the assortment, it is necessary to consistently answer three questions.

1. What is the demand for this product?

The answer to this question is contained in a marketing study of the demand for a product and the characteristics that determine this demand. At this stage, we can not only determine the demand, but also find out the “acceptable market” price and the “competitive” price. The acceptable market price is determined for goods that:

First appeared on the market, and demand has not yet settled down, as well as prices in different stores;

They are rare, so there is also a wide range of prices in different stores;

They are not available from competitors, i.e. they are unique.

A competitive price is determined for the majority of goods in the store, i.e. those goods that are well known and are available in many stores of similar product specifics How this is done, we discussed in detail earlier.

In fact, this means that an acceptable market price is determined for goods for which a competitive price cannot be determined.

2. Is it possible to earn income from the sale of this product?

To answer, we need to isolate all the costs that the process of selling the selected product generates and calculate the “break-even point”. Then, by comparing the results of the calculation with the “acceptable market” or “competitive” price, we can see whether sales of this product will bring us a profit or loss.

3. How does this product fit in with the store's existing inventory??

Different products are not just sold side by side on the same trading floor, but have a mutual influence on each other's sales. Thus, the product lines in the assortment are interdependent.

The impact of the sales of one product on the sales of another can be negative or positive.

Substitute products (substitutes) have a negative impact. Substitute products usually represent different brands within the same product category or group of products. In some cases, substitute products belong to different product categories (for example, with a sharp increase in meat prices, sales of pasta and cereals increase).

Complementary products have a positive impact (the sale of one product entails the sale of other products)

Setting prices for substitute goods The higher the price of one of the substitute products, the higher the demand for cheaper brands. When deciding to increase the price of one of these goods, it is necessary to evaluate and calculate how much the sales of other goods will increase and whether the profit received will compensate for the decrease in sales of the product that has risen in price.

However, it will obviously be efficient for a retailer to charge similar prices for substitute products with the difference determined by the perceived value of the product. The ratio of prices for substitute goods should not differ significantly from those of competitors, since this is perceived by the buyer as an imbalance in prices in the store and makes him more attentive to the price.

Setting prices for complementary goods. Since complementary products are the hallmark of an assortment, it is essential for a retailer to distinguish between groups of complementary products – so-called kits. Every experienced retail worker is well aware of the existence of such kits and can give many examples. Understanding how the mechanism of product complementarity works, managing this mechanism can open the door to the assortment list even for unprofitable positions.

In terms of their composition, kits have significant differences depending on the type and format of the store. Kits can include both products within the same category and complementary products from different categories.

For example, a set for borscht: such a set is most likely relevant for a store near the house. For a supermarket, perhaps a “vegetable” set will be a salad set: tomatoes, cucumbers, bell peppers, herbs, etc.

Other examples of a set of products from different categories: buying coffee will positively influence the purchase of coffee creamer; buying a suit - buying a shirt and tie.

Naturally, the question arises: how to correctly identify these sets? There is no exact advice, for each store it is very individual. Here are a few general principles.

Determine in each category those types of goods that are bought by almost all representatives of the target groups of buyers. One of the possible methods is to analyze the occurrence of certain types of goods in receipts or to identify sales leaders in the category.

Analyze with what types of goods these goods are most often bought, i.e., analyze the shopping basket. Also analyze what products are associated with the purchase of leading products from your customers.

An important point for determining the main product of the set is the one at the price of which the decision to purchase the remaining products is made.

In the vegetable set of the store near the house, potatoes will be the main one - they are sold more than other vegetables, since they are needed not only for borscht. Further in descending order are onions, carrots, cabbage, beets. It would be correct to assume that the price of potatoes is decisive.

What prices to set for items in the kit It is obvious that the price of the main ("anchor") product in the set should be attractive to the buyer (taking into account the company's competitive strategy). selling a given product, the higher the price.

In a clothing store, the price of a suit should be the most attractive (with a minimum margin), and the prices of accessories - belts, ties, jewelry - high.

In some cases, separate complementary goods (basic) are priced at or even below the break-even point, making such goods loss leader. This can be justified if the product has a strong impact on the sales of other high-margin items in the bundle. The main thing is to observe the following principle: the increase in profits due to high-margin items in the kit should compensate for the loss in the main product.

In other words, the profit must be calculated for the entire set as a whole and the sales volumes of the components of the set must be regulated in such a way that this profit is the maximum possible.

For example, in the US, white bread, eggs, flour, and one type of peanut butter are the top losers.

The possibility of successful existence of loss leaders is determined by two factors.

1. The average shopper hardly remembers the prices of secondary goods in different stores, as he only compares prices for the main ones. Thus, the most purchased goods can be leaders in terms of losses.

2. Low prices for certain goods give freedom in the implementation of a competitive strategy.

Characteristically, stores with a large assortment of products can apply pricing using loss leaders more often and more efficiently the assortment is more diverse than in a store with a narrow assortment.

To summarize When choosing a pricing strategy, it is necessary to take into account and optimally combine external factors - demand and competition - with internal factors - costs. Category managers and marketing specialists are responsible for providing information about demand and competition, pricing economists are responsible for calculating the price structure for each commodity unit, whose task is to correctly allocate costs.

For a retailer that presents a range of complementary products, it is very important to set prices taking into account the strength of the mutual influence of product sales.

The effect can be achieved through the judicious use of the loss leader - the main product that has the greatest impact on the group of complementary products (set).

We list the principles of setting prices for complementary goods in a set.

1. The need to take into account the costs per unit of goods to determine the structure of the price of goods.

2. The selection of sets of complementary products that have a significant impact on each other's sales.

3. Establishing a minimum price for the main (basic) product in the set and higher prices for other products of the group in proportion to their impact on sales of other products.

It is important not only to take into account all these factors and principles, but to manage them competently, monitor all changes and take action. This task - managerial - lies with the head of the retail enterprise. The success of the store largely depends on his understanding of the essence of pricing and the specifics of retail, the relationship between assortment management and pricing.

In practice, the “loss lead” technique is widely used by many retailers, especially Western retail chains, discounters and hypermarkets Attractive prices for customers can be at the same time the topic of external store advertising, especially when opening a new store. For example, one home improvement store ran a massive advertising campaign prior to opening a new store that advertised non-stick pans at a very low price (most likely to break even). This technique attracted a lot of people to the opening, who came for cheap frying pans, and at the same time looked at the store. If you like the store on your first visit, this is a guarantee of repeated visits.

For stores whose competitive strategy is "cost leadership", the use of "loss leadership" has its own specifics: such products must stand out in each product category and constantly change to take into account seasonal sales fluctuations and holidays. For example, a product with an attractive price in its product category should be changed in the grocery store about once a week. The period of validity of one such product depends on the frequency of visits to your store by the majority of target customers. For example, people do not visit a building materials store so often, so an attractive price can last for several weeks.

For stores with a competitive strategy of "unique product, unique service", the applicability of "loss leadership" is limited, since low prices for high quality goods will negatively affect sales and the image of the store itself. This technique is only possible for consumer goods, if such are available in the range.

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CHAPTER 5 Pricing Methods

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5.1. Stages of pricing For enterprises operating in the market (manufacturers, sellers), one of the most important is the question of the level of prices for manufactured or sold goods. Price is the element that ultimately determines profitability

From the book Marketing. Short course author Popova Galina Valentinovna

5.5. Parametric pricing methods Parametric pricing methods are based on determining the quantitative relationship between prices and the main consumer properties of the product included in the parametric range. The parametric series represents

From the book The Big Book of the Store Manager 2.0. New technologies the author Krok Gulfira

Pricing mechanism in salons In the hairdressing business, as in any other field, there is a market pricing mechanism. This means that, ideally, there must be a price for services that suits both the client and the salon. Its name is agreed

From the book Hooked Buyer. A guide to building habit-forming products by Hoover Ryan

Pricing factors Salon expenses. The biggest factor is salon costs (or costs). They serve as a starting point for pricing, but not the only one. A big mistake is made by salons that conduct pricing using the direct cost method. They are not

From the book Social Entrepreneurship. Mission is to make the world a better place author Lyons Thomas

5.2. Pricing methodology in construction When developing a pricing methodology in a particular construction organization, it is necessary to take into account the factors that should underlie it. These include: internal:? prevailing prices; cost structure, direct and

From the author's book

Topic 10 PRICING METHODS

From the author's book

10.3. Pricing Methods Choice of Pricing Method Knowing the demand schedule, the estimated cost and competitors' prices, the firm is ready to choose the price of its own product. This price will be somewhere between too low, not providing a profit, and too high,

From the author's book

PRICING ISSUES The importance of the issue of "correct" pricing does not require explanation and evidence. We confine ourselves to indicating the main goals of pricing. Achieving the maximum attractiveness of the store at prices for the target

From the author's book

Choosing a Pricing Strategy Often in a conversation with store managers, you can hear something like this: “The main thing is to get a trade credit from suppliers at low prices with a “long” delay and choose a markup so that prices are not higher,

From the author's book

Greater Pricing Flexibility Warren Buffett, a well-known investor and CEO of Berkshire Hathaway, once said, “You can tell the strength of a company by how badly a price increase is hurting its business”(20). Warren Buffett and his partner Charles Munger realized that when

From the author's book

Retail strategy IA's retail strategy combines high-quality design, well-thought-out supply chain logistics, and fair trade practices to 1) provide artisans with a sustainable income and 2) scale operations

The pricing subsystem is designed to solve a number of important tasks at the enterprise:

combining goods into price groups (for example, the price of goods of own production and purchased goods can be formed differently);

maintaining a classifier of various types of prices:

Assignment of different pricing options for goods of different price groups;

Setting end price ranges (setting limits on maximum and minimum sales and purchase prices);

maintaining a classifier of discounts (markups):

Various conditions for granting discounts (markups);

Registration of discounts (markups);

The combined effect of various discounts (markups);

appointment of automatic discounts (markups) for wholesale and retail sales.

So, those nomenclature items that have a similar pricing mechanism can be combined into price groups. One nomenclature item can be assigned to only one price group. This is especially true for enterprises that are engaged in both production and trade.

Program:

Section "reference information" - "settings and reference books" - "price groups". In order for this classifier to be available, the "Price groups" option must be enabled in the "Administration" section - the "Marketing and CPM" subsection.

The connection of the item item with the price group is established in the item card.

This classifier also makes it possible to form a price list not as a continuous list of nomenclature, but broken down by product groups. For each price group, you can set your own price calculation formulas, specify the percentage of discounts.

Let's go to the classifier "Types of prices" (Marketing - settings and directories). If this option is not available, go to "Administration" - "Marketing and CPM" - "Several types of prices".

I’ll note right away that when we check the “When selling to customers” checkbox, this price will automatically fall into the price list as a separate column. "When transferring m \ y org." - ….. "When entering on the basis of delivery documents" - allows you to calculate retail prices based on the prices registered in the delivery documents and the specified markup. The remaining prices are not used in the sale and transfer of goods - they are "technical" (minimum and maximum prices of competitors, suppliers, etc.).

Be sure to indicate the currency and the procedure for including VAT in the price.

Option - Use simplified features.

Manual assignment - such prices are assigned by the user as necessary at the time of entering the document "Setting item prices";

Mark-up on the receipt price - a nuance - if it is necessary that prices can be registered when entering on the basis of a delivery document, then the checkbox "When entering on the basis of delivery documents" should be checked. At the same time, it is necessary to enter into the classifier the form - "Price of receipt" with the calculation rule "Arbitrary request to IS data";

Arbitrary request to information security data - the price is calculated according to some algorithm, based on the data of the infobase. If you choose this method, the form will have the "Data composition scheme" field available. The following predefined ACS values ​​are available:

Receipt price

Cost without additional expenses

Cost with additional expenses

Maximum supplier prices

Average supplier prices

Minimum supplier prices

Minimum prices of competitors

Maximum competitor prices

Average competitor prices

Etc.

Markup on another type of price.

Arbitrary formula from other types of prices - calculated automatically on the basis of other types of prices according to some specified formula. Formulas can be written by hand or using a special formula builder. (Only in full features mode).

For each price type, you can specify price rounding rules. Specifies the accuracy of price rounding after all discounts and markups have been applied. You can also create a "Psychological Discount". In this case, the sign of rounding up and according to arithmetic rules can be set.

For each type of price, you can specify the trigger threshold - the percentage of deviation of newly assigned prices from previously registered prices. At the same time, this threshold can also be set for price groups.