80. PRICING METHODS IN LOGISTICS

Ways to form the basic price of products:

1) free setting of prices. Prices are set as a result of negotiations between the seller and the buyer. The price in this case adapts to the needs of a particular consumer. This method of setting prices is used when selling, for example, non-standard products;

2) application of the list price. When assigning a list price, the following factors characterizing specific consumers are taken into account: the buyer's belonging to a certain market segment; quantity of purchased products; the consumer has certain obligations for the physical distribution of products (organization and conduct of presentations, tastings).

For further pricing, two methods are used:

1) net pricing system - the seller fixes the price in relation to the direct buyer. If the buyer sells the purchased product further up the supply chain, he can set the price himself. The manufacturer in this case does not directly affect the value of the final price of his products;

2) gross pricing system. The manufacturer sets a retail price for the product that he considers most appropriate to the characteristics and needs of a given market, and may insist that the retailer sell the product at that price. When setting prices, a system of discounts and surcharges is often used.

Types of discounts:

1) quantitative - provided if the buyer orders a large number of products;

2) cumulative - when redeeming during the year part of the product for a set amount with a regular discount, the buyer receives an increased discount on subsequent orders until the end of the year;

3) discount for regular partners.

Purpose of discounts:

1) incentives for the purchase of large quantities of products (quantity discount);

2) ensuring long-term cooperation with the buyer (discount for regular partners, cumulative discount);

3) drawing attention to certain products (discount for introducing new products into the sale).

Types of allowances:

1) special - is used if the volume of the order is less than the value acceptable to the supplier;

2) bonification - a premium paid by the buyer to the seller upon delivery of products of a higher quality than was stipulated by the terms of the contract.

Another pricing strategy is price differentiation - Establishing different price levels for the same product. Principles of price differentiation:

1 Territorial - involves setting prices depending on the place of purchase and sale of products or on the place of its production;

2) by time - products are offered at different prices depending on the time of day (day and night prices), year, day of the week;

3) by groups of buyers - the condition for setting prices is that the consumer belongs to a certain social group (pensioners, disabled people, unemployed, students);

4) depending on the purpose of using the product - when setting prices, they proceed from where this product is used (for example, the use of salt as a seasoning, in animal husbandry or in winter for sprinkling the streets).

Author: Shepeleva A.Yu.

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