What is the price? It's a complex concept

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:48

What is the price? To answer this question, you need to turn to such a concept as the cost of a product. It includes the cost of various materials, wages of employees, depreciation, taxes and other costs. In general, everything that allows you to make a complete thing. It makes no sense to sell products below cost. Therefore, it is sold at a profit for wholesalers.

It makes no sense for commercial organizations to sell products purchased from the manufacturer without benefit to themselves. Therefore, the selling price plus the trade mark-up is what the price for trade enterprises is in the simplest terms. In Russia, unlike in a number of countries, the maximum amount of the allowance is not set. Therefore, the cost is often "inflated" as long as the products are bought.

In fact, the question of what the price is for a particular product has a whole methodology behind it. For example, the total cost method assumes thatthat to the fixed and variable costs that are present in any trading operation, some expected amount of profit is added. In accordance with the direct cost method, indirect costs are not taken into account when determining the price. These methods, as well as administrative pricing, do not take into account the conditions prevailing in a particular market.

The question of "what is the price" becomes more complicated if you need to take into account offers of similar products from competitors. In this case, you can use competitive methods, following market trends, setting a price tag based on the positive qualities of the product that users perceive. You can also directly study the set of factors affecting the cost and form this indicator using a parametric method.

Pricing for products, goods that are produced in another country stands apart. Here, transport costs play a certain role, as well as the costs that arise when crossing the border (customs fees, etc.)

For example, prices for refrigerators in stores in our country range from 5,000 to 200,000 rubles. For the minimum cost, you can buy a single-chamber refrigerator, the maximum dimensions of which do not exceed 50 cm. This option would be optimal for pensioners or for use in the country. Expensive samples have volumes of several hundred liters, several doors, special temperature conditions, autonomous cold storage for more than one day,ice makers, built-in wine cabinets and other gourmet storage options.

Prices for air conditioners also vary depending on the country of manufacture, place of sale and individual characteristics of the device. The simplest of them are single units attached to the window, which work only in cooling mode. If you see an air conditioner for 150-200,000 rubles, do not be surprised. This is usually a whole system with which you can create a pleasant climate in many rooms, and sometimes in the whole house, restaurant or concert hall. In addition, such devices can heat the air in the room, dehumidify it and clean it with highly sensitive filters.