Open Library - an open library of educational information. Features of pricing at the present stage

10.10.2019

The value of the subject property is influenced by variety of factors of external and internal environment:

1. Economic factors:

Demand for the object of assessment;

Income of the property under assessment from operation and resale;

Duration of receipt of income;

The risk associated with the object;

The degree of control over the object (the presence of property rights);

The degree of liquidity of the object of assessment;

Restrictions imposed by the state or other persons on the object;

Costs for the creation of similar facilities;

The ratio of supply and demand for similar objects;

Inflation, purchasing power, etc.

2. Social factors:

Availability and development of infrastructure;

Demographic situation (number growth, birth and death rates, density, population migration);

3. Political factors:

The state of legislation in the field of valuation, property, taxation, etc.;

Political and legal situation in the country;

Government and local government policies;

4. Geographic factors, environmental conditions:

climate, relief, Natural resources, environmental conditions.

5. Scientific and technical factors:

Technology and organization of construction;

Construction costs, etc.

The basis of the real estate appraisal process is set of interrelated factors, taken into account by the assessors. These factors are:

Ø supply and demand factor;

Ø real estate user factor;

Ø factors related to the property;

Ø factors of the external market environment;

Ø Best and most efficient use factor.

When evaluating real estate, all factors must be taken into account. but their importance may vary.. The degree of significance of each evaluation factor is determined by the specific situation that develops in the evaluation of a particular object.

Demand, supply and market value real estate depends on many factors:

1. Economic (economic situation in the country, in the region, interest rates, electricity tariffs).

2. Physical (land, soil, climate, roads, location.

3. Social (trends in population size, its rejuvenation, crime rate.

4. Administrative ( building codes and regulations, tax and financial policy)

When assessing the market value, it should be remembered that it is also affected by the period in which it is considered. In the short term, the market price is mainly affected by demand, as supply does not have time to adapt to changes in demand. In the long run, the influence of supply increases, and it actively affects the market value.

Supply and demand factor is the main one and takes into account, when evaluating a property, the operation of the law of supply and demand, which affects the market value of the property, like any product on the market. Demand is characterized by the quality of objects that buyers are ready or able to buy within a certain time at the prevailing market price at a given time.

The offer is characterized by the number of objects offered for sale on the market at the moment at a specific price. The ratio of supply and demand determines the price level in an equilibrium market. stand out three possible options supply and demand:

Ø supply and demand are equal, as a result of market transactions, a fair equilibrium market price of the property is formed;

Ø demand exceeds supply, market prices rise, speculative prices are formed, there is a danger of corruption leading to the destruction of the market;

Ø supply exceeds demand, prices fall, market stagnation occurs.

The main characteristics of the residential real estate market are high price its facilities and low elasticity of supply by price: when the cost of housing changes, its supply on the market almost does not change. Supply inelasticity is caused by the length of the construction period. Therefore, there is a constant relationship between changes in supply and demand.

Thus, with an increase in demand for housing, an increase in supply in the primary housing market is possible only in a year or two, and with its reduction, construction continues, which is associated with a high level of costs incurred. This nature of the interaction of supply and demand leads to the fact that price is the main regulatory factor by which supply and demand are balanced.

That is why there is a constant risk in the housing market of a situation where the current value of housing becomes higher than its fair market price.

Against the backdrop of the recovery in the housing sector, there is a risk of overheating effect, when excessive increase in investment in construction will turn out to be unprofitable upon its completion due to the deterioration of the general economic situation and the fall in demand compared to the expected volume.

This issue is of particular importance in the case of mass distribution of housing loans, since with a fall in economic activity, unemployment increases, and the incomes of the population lose stability, which complicates the fulfillment of obligations assumed by citizens under loan agreements.

According to the rules of the market, the art of bidding, the number of bidders, financing schemes for this transaction, and other factors have a great influence on the sale price. Prices mainly depend on the capabilities of investors. Demand for real estate is more subject to fluctuations than supply, since a sharp change in the money supply and emotional moods at the time of a real estate transaction occurs in shorter time intervals than the time of construction of real estate objects, as a result of which an additional supply is created on the market.

Factors to be considered by the buyer of real estate include the following:

Ø utility factor. A property has value if it can be useful to the potential owner for business or social and personal needs. Utility - the ability of a property to meet the needs of the user in a given place and for a certain period of time;

Ø replacement factor(substitute) implies the existence of choices for the buyer, i.e. the value of the property depends on whether there are similar or replacement properties on the market;

Ø waiting factor shows that the value of a property - the current value of all future income received from its use, is constantly growing due to increased demand and limited supply, i.e. the value of an income-generating object is determined by the amount of cash flow expected from the use of the object being valued, as well as the amount expected from its resale.

The real estate market is system of market mechanisms, which provide the creation, transfer, operation and financing of real estate.

The factors influencing the development of the real estate market are:

Ø the economic growth or prospects for such growth. (It may happen that even in the absence of general economic growth, favorable conditions arise in the market, but they are, as a rule, short-lived and occur quite rarely);

Ø financial opportunities to purchase real estate. It depends on the stage economic development candy region (crisis, stagnation, industrial development), as well as the presence and nature of jobs;

Ø relationship between the value of real estate and the economic prospects of a particular area.

Some areas may be in a state of stagnation as their main industries have moved to other parts of the country or have fallen into disrepair. This has a direct impact on the instability of the real estate market.

The real estate market is also under significant influence: factors of state regulation, general economic situation, microeconomic situation, social status and natural conditions in the region.

Pricing factors in the evaluation of apartments are:

Ø location:

District, microdistrict;

Location in the neighborhood;

Distance from the center;

The prevailing development of the microdistrict;

Transport accessibility, remoteness of the house from the metro station, public transport stops;

Availability of public transport (subjective assessment);

Infrastructure development;

Social infrastructure facilities of the microdistrict within walking distance (less than 1 km);

Provision with social infrastructure facilities (subjective assessment);

Objects of the industrial infrastructure of the microdistrict;

Objects of the transport infrastructure of the microdistrict;

The state of the adjacent territory (subjective assessment);

Presence of parks, reservoirs, industrial enterprises

Ø residential building in which the appraised apartment is located:

building type;

Year of construction;

Material of external walls;

floor material;

Building condition (subjective assessment);

Technical support of the building;

Organized parking of personal vehicles or underground garage;

Number of floors in the building;

Condition of the entrance (subjective assessment);

The landscaping of the yard, the presence of an elevator and a garbage chute;

Ø characteristics of the appraised apartment:

Floor location;

Area, sq. m: common / residential;

Number of rooms, their area, sq. m;

Kitchen area, sq. m;

bathroom;

Ceiling height, m;

Loggia (balcony);

View from the windows;

Additional security systems;

The state of the object (subjective assessment);

Visible defects interior decoration;

Information about redevelopment;

The condition of the apartment

area of the apartment,

residential and common,

The isolation of the rooms

kitchen and bathroom area,

Phone,

Balcony or loggia

View from the window,

Neighbors and more.

The market price of real estate is understood differently from trading in other goods or securities. This difference occurs for many reasons, including:

Ø uniqueness of each object;

Ø a wide variety of sales conditions (cash, installment, prepaid, mortgage, social contracts, etc.);

Ø high uncertainty, incomplete availability of market information, its asymmetry for buyers, sellers, intermediaries;

Ø significant duration of the sale, which does not suit the seller;

Ø the need for quick action on the part of buyers in order not to miss an object that is attractive to them.

All this leads to the fact that the "true" market value of a particular property is not known to anyone, and as a result, many properties are sold both much more expensive and much cheaper than their appraised value.

Intermediaries (realtors, appraisers) say that “the price of real estate most of all depends on the location. This is not the only, but very important factor.

Even in the case of an apartment in a typical house, its price can vary greatly and depend on: from the district, from the quarter, from the location of the house within the quarter, from the floor, from the presence of a playground, parking near the house, from the view from the window (into the yard, on the street, on the forest, on the river), from the proximity of educational and cultural institutions, shops, transport, places of rest and many other circumstances.

Property valuation is a scientifically based expert opinion appraiser on the value of the object being valued and the process of determining the value of the object.

Market value - this is the most likely price, for which the sale of the object at the valuation date is expected as a result of a commercial transaction in the conditions of market competition between a voluntary seller and a voluntary buyer after comprehensive marketing.

Assessment process And- a logical and systematized procedure for sequentially solving problems using known approaches and methods of evaluation to make a final judgment about the cost.

The other pricing factors are:

Ø transferable rights (property, lease, perpetual use, restriction of rights);

Ø conditions for financing the transaction (conditions for raising debt capital);

Ø conditions of sale (fulfillment of the requirements of a net transaction);

Ø market conditions (including time of sale);

Ø the degree of construction completion of the object;

Ø physical characteristics of the object;

Ø economic characteristics (forming income from the object);

Ø use of the object.

Cost estimate- a long and complex process of establishing the monetary equivalent of the value of the property. It requires a highly qualified appraiser who knows the methods and tools of appraisal activities, who knows the state of the real estate market and especially the desired segment, the detailed meaning of the legal features of real estate transactions, etc. The appraiser must have a license.

Pricing factors differ in levels of influence:

Level 1 influence factors (country)

1. Economic: real estate taxes; provision of the population with public facilities; construction financing standard of living

2. State and prospects of construction and reconstruction; sentence; demand; real estate market

3. Social: population structure; level of education and culture of the population, needs, family; population density.

4. Physical: ecology; Natural resources; geographic; seismic, technological solutions in the field of land use; geodetic; topographic.

5. Political: mortgage legislation; construction legislation; tax law; property laws; real estate laws; laws in the field of ecology, zoning of territories; bail law; credit policy law; cadastres; licensing of real estate and appraisal activities; political stability

Factors of influence of the 2nd level (city, district)

1. Location: transport accessibility; the presence of objects of social culture; pedestrian accessibility, placement of objects in the plan of the city (district); availability and state of communication; adjoining environment.

2. Physical characteristics: physical parameters; functional suitability and use

the condition of the property; attractiveness, comfort; quality of construction and operation.

3. Conditions of sale: pledges and pledges; special conditions of transactions, motives of sellers and buyers

4. Time factors: date of valuation, date of known transactions by analogues.

5. Terms of financing: terms of crediting; interest rates, conditions for disbursement of funds

Level 3 Influence Factors (Building)

1. Architectural and construction: space-planning indicators

2. Financial and operational: income, operating costs; construction cost

The change in the value of any property depends on a number of factors that appear at various stages of the valuation process. Factors affecting property value can be assigned to three different hierarchical levels .

1st level: The level of influence of the results of the interaction of four main factors: social, economic, physical and political. At this level, factors that are subject to analysis and evaluation are general character not related to a specific real estate object and not directly dependent on it, but indirectly affecting the processes taking place with real estate on the market, and, consequently, the property being valued.

2nd level: The level of influence of local factors, mainly on the scale of a city or urban area. At this level, factors such as the location of the object, its physical characteristics, sales conditions, time factors, financing conditions are examined. These factors are directly related to the appraised object and the analysis of similar real estate objects and transactions on them.

3rd level: The level of influence of factors associated with the property and largely due to its characteristics. At this level, the following factors are evaluated:

architectural and construction;

financial and operational.

The influence of factors can occur simultaneously at different levels, and be taken into account sequentially, depending on the degree of detail of the assessment and the type of value being assessed.

Real estate is influenced by its environment, and itself affects this environment. Therefore, when assessing, environmental and real estate factors that affect the value of real estate are determined.

There are four main factors that determine the demand for housing:

Ø consumer preference;

Ø income of the population;

Ø housing prices;

Ø number of households in the housing market.

These factors affect the market equilibrium. Demand and supply for real estate objects depend on many factors:

Ø administrative (the presence or absence of restrictions on the part of the state, the regulatory role of the state and local administrative bodies, the tax regime);

Ø economic (prices for real estate, competition, level of economic development of the market, income level of the population, business activity of the population, services of credit and financial organizations, volumes of construction of new real estate objects);

Ø social (the attractiveness of the region, the structure and composition of the population of the area, the level of development of social infrastructure);

Ø environmental (the presence of green spaces, air pollution, the abundance of industrial enterprises, the presence of harmful emissions, excessive noise).

Social factors are mainly represented by the characteristics of the population. This includes demographic composition, marriage and divorce rates, average number of children, age distribution of the population, and so on. All this testifies to the potential demand for real estate and its structure.

Economic factors also significantly affect the value of real estate.

Economic factors that determine demand include:

Ø employment of the population;

Ø average salary;

Ø degree of economic development of the region;

Ø price level;

Ø availability and conditions of a loan for the purchase of housing, etc.

Economic factors (objective factors) can be divided into two kinds:

Ø macroeconomic related to the general market conditions (taxes, duties, dollar exchange rate dynamics, inflation, unemployment, level and conditions of wages, the need for real estate, etc.);

Ø microeconomic, characterizing the objective parameters of specific transactions (all terms of the contract - subject matter, validity period, rights and obligations of the parties, termination of the contract, etc.).

The factor of state regulation at all levels has a great influence on property values. The scope of state regulation includes:

Ø restriction of real estate turnover and land use methods, construction standards;

Ø public Utilities, fire and policing, garbage collection and public transport;

Ø federal and local tax police;

Ø special legal norms affecting the cost (regulatory formation of rental rates, restriction of property rights, law on environmental protection, public investment in capital construction, etc.).

Under environmental factors real estate appraisal is understood as a set of purely natural and natural-anthropogenic factors that are not means of labor, commodities or sources of energy and raw materials, but that have a direct impact on the efficiency and usefulness of the property.

Sharp changes in the market situation can be caused by the closure of an industrial enterprise, changes in tax legislation or the start of construction of new real estate. The real estate market is constantly changing; social, economic, political and economic factors affecting real estate are always in transition. Changing these forces affects the supply and demand of real estate and, consequently, the value of individual properties. Appraisers try to recognize ongoing and potential market changes that may affect the value of a property.

The real estate industry does not always easily adapt to new consumer preferences, and therefore is often late.

TO external pricing Factors include factors beyond the firm's control over which the firm cannot influence.

External factors can be conditionally divided into two groups: external factors due to national conditions, and external factors associated with the international economy.

External factors caused by the national economy:

§ state regulation of prices, which consists in: establishing rigid prices for certain types of goods and services in various sectors of the economy; in the formation of the state pricing policy; in applying the system of maximum and minimum prices; in determining the thresholds and boundaries of price changes;

§ development and application of state tax, monetary and depreciation policies;

§ use of the system of customs duties on import and export goods:

§ establishment of a minimum wage;

§ implementation of antimonopoly policy;

§ inflationary processes;

§ the level of well-being of the people;

§ tastes and preferences of consumers, etc. External factors related to the global economy:

§ changes in world prices (prices on world commodity markets);

§ changes in exchange rates;

§ conjuncture of world commodity and stock markets:

§ the use of prohibitions and restrictions in foreign trade of various countries, etc.

Under the influence of these internal and external factors, prices for goods and services within the country are formed.

5. Causes of multiple prices in international trade

Plurality of world prices - the presence of a number of prices for the same product in the same sphere of circulation (import, wholesale, retail prices); the presence of different prices for goods of the same quality in approximately equal amounts on the same transport or freight base.

The multiplicity of world prices is a consequence of:

firstly, the policy of monopolies, establishing a system of prices, differentiated by markets, categories of buyers;

secondly, state policy (trade and monetary);

thirdly, non-commercial and other special operations carried out by government organizations.

In addition, the reason for the multiplicity of prices is protectionism: if for some commodities world prices are determined by the price level of exporting countries, for others - by the price level of importing countries, for others - by the price level of stock exchanges, auctions and other international trade centers, then in determining prices of finished products, world prices are determined taking into account the prices of leading firms. Customs barriers, special trade-political and currency zones create prerequisites for differentiating prices for the same goods in international trade (6, p. 27).

The monopolization of the domestic market of individual countries, as well as foreign markets by international trusts, concerns and cartels, agreements on the division of markets, the participation in trade of various governmental and semi-governmental organizations - all this, along with the corresponding trade, political and currency conditions, leads to the appearance on the world capitalist market of various prices for the same goods. The efforts of state-monopoly capitalism have a significant impact on international trade and on the level and dynamics of export and import prices. Provision of international state loans and credits, provision of “aid” by imperialist states to other countries, implementation of special government programs, export of goods to state-monopoly organizations in order to sell domestic “surplus” agricultural products, large government purchases of imported goods to create strategic reserves and other similar measures have the effect of carrying out foreign trade transactions at special prices due to the very nature of these agreements, different from ordinary commercial transactions.

6. Measures of state influence on foreign trade prices
State intervention in pricing is carried out by way of overstatement of production costs, sanctioned by government agencies, through the inclusion of inflated depreciation write-offs and deductions to other funds in the cost price. As a result, in entire industries, a situation arises when "costs support the price", i.e. the estimated (rather than actual) costs of production, as a result of government incentives, turn out to be so high in all enterprises that price increases become a matter of course, and since incentives apply to the entire industry, intra-industry competition in favorable conditions cannot be a sufficient obstacle to price increases.

Direct state intervention in the pricing process is the state policy of setting prices for so-called excisable goods. Government subsidies have a direct impact on price formation. One of the types of such subsidies - price - provides for price reduction through special additional payments to the producer or consumer.

The direct impact on prices and price leadership takes place in industries where the state's share in the consumption of goods and services is significant, for example, in the military industries, in a number of construction sub-sectors.

Government bodies, being regular buyers or customers of certain types of goods and services from private firms, establish "contract prices" by agreement with partners, which then become the base for the industry. An effective means of price regulation is VAT. Producers include this tax in the price of a good or service, and differentiated changes in the rates of this tax directly affect prices.

A special direction of the state economic policy is the state influence on foreign trade prices. State promotion of exports, exemption of exporters from taxes (tax refunds), and in some countries export subsidies, provision of concessional loans and transport tariffs significantly affect the conditions of price competition in the world market.
Currently, a fairly wide range of forms and methods of state price regulation is used, which can be divided into direct and indirect. With the help of direct methods, the state directly affects the order, methods of determining and the level of prices. These include: a more regulated procedure for determining costs and profit margins, blocking price increases, setting upper and lower price limits, limiting profit margins, mandatory price reductions when prices for raw materials are reduced, various kinds of subsidies, changing the level of customs duties on exported and imported goods. Indirect methods include methods by which the state regulates the behavior of objects involved in the pricing process, but does not dictate the procedure itself, methods for determining prices and its level. Such methods underlie various regulations aimed at creating a competitive environment: antitrust and antimonopoly legislation, various agreements between the state and entrepreneurs on a "reasonable" price policy; acts on price discrimination, prices and advertising. This also includes declaring prices, changing tax rates depending on the price, making investments in order to reduce costs and prices in state-owned enterprises. At the same time, the state also uses such indirect methods as "intervention prices", "maintenance prices", the introduction of quantitative restrictions on imports, the establishment of "recommendation" prices, purchases and buffer stocks during price declines and the sale of goods from stocks during periods price increases, etc.

7. Price information system
The price system is a single, ordered set of different types of prices that serve and regulate economic relations between various participants in the national and world markets. There are the following price differentiation:

♦ by sectors and service sectors of the economy; by the degree of state participation in the pricing process; by stages of pricing; on the transport component; by the nature of the price information.

Price differentiation by sectors and service sectors of the economy is based on taking into account the characteristics of individual sectors of the national economy and includes the following types of prices:

Wholesale prices for industrial products - prices at which industrial products are sold to all categories of consumers, except for the population, regardless of ownership; purchase prices for products Agriculture- these are the prices at which agricultural products are sold by collective farms, state farms, farms and the population (products of private farms); prices for construction products - represent either the estimated cost of the object (the maximum amount of costs for the construction of each object), or the average estimated cost of a unit of the final product of a typical construction object (per 1 m ^ of living space, 1 m ^ painting works etc.); freight and passenger transport tariffs - payment for the movement of goods and passengers, which is collected by transport organizations from the senders of goods and the population; prices for consumer goods - are used for the sale of goods in a retail trade network to the population, enterprises and organizations; tariffs for services - a system of rates at which service enterprises sell them to consumers.

In addition, a distinction is made between export and import prices.

Export prices- these are the prices at which producers or foreign trade organizations sell domestic goods (services) on the world market. Import prices are the prices at which firms purchase goods (services) abroad. Prices for imported products are set on the basis of the customs value of the imported goods, taking into account customs import duties, the exchange rate, and the costs of selling this product within the country. At the same time, in the structure of import prices, a significant place is occupied by indirect taxes - excise and value added tax.

Differentiation of prices according to the degree of state participation in the pricing process includes the following types of prices:

Market price - the price that develops in the market in the process of relations between pricing entities under the influence of the market situation. Market prices according to the conditions of their funding are divided into free, monopoly and dumping; regulated price - the price that develops on the market in the process of direct state influence. According to the conditions of their formation, regulated prices are divided into fixed and marginal.

Differentiation of prices by stages of pricing reflects the quantitative relationship of prices that develop as the goods (services) move from the producer to the final consumer. The price at each previous stage of the movement of goods is an integral element of the price of the next stage. Distinguish bulk prices manufacturer, selling wholesale prices, wholesale purchase prices and retail prices.

8. Influence of factors of external and internal environment on pricing processes

Pricing decisions are influenced by FACTORS both internal and external to the company. These factors form certain boundaries within which a firm can operate when setting prices for its products.

9. Choice of sources of price information

Customs officials select price sources that contain the most recent and documented information about prices for analogue goods that compete with imported goods, as well as information about the terms of sale of these goods on the world market. Moreover, information about the conjuncture of the relevant market and trends in its change can also be attributed to price information.
The most priority price information, in terms of the reliability and relevance of prices, are commercial documents (contracts and invoices) for previously made deliveries, found using the "Monitoring-Analysis" system and received at the request of the customs authorities. Important information can be considered the data of exchange quotations, reference prices, prices of auctions, tenders, offers of firms, catalogs, price lists. As additional information, it is also advisable to use the prices of foreign trade statistics, data from well-known firms and organizations. To improve the reliability and reliability of the information used, it is advisable to use at least two or three sources for the analysis of exceptions in the calculations of the subjective factor.
At the third stage of the customs value control algorithm, the selected price information is brought into a form comparable with the terms of the transaction being checked. At this stage, if necessary, officials adjust the selected price information to take into account differences in additional charges between the item being valued and the price information.
Depending on the terms of the foreign trade contract for the sale of the goods being checked, additional costs may be added to the price information, in addition, deductions are made to bring this information to the commercial terms of the transaction. At this stage of the algorithm, the price information that has been adjusted receives a new status - a test value. The benchmark (derived from price information) is the price per unit of a product similar to the product being valued, adjusted for differences in commercial terms of sale, surcharges and deductions.
At the fourth stage, the value of the customs value of the goods declared by the declarant is compared and analyzed with the verification value (corrected price information). Such a check consists in clarifying additional circumstances of the transaction in question and the conditions for the sale of goods that affect the discrepancy between the value of the customs value of the goods and the price information available in the customs authority, as well as obtaining explanations regarding the identified signs of unreliability of the declared information on the customs value of goods.
The considered customs value control algorithm in assessing the reliability of the declared customs value using price information should contribute to the development of recommendations on the application of methods for adjusting price information and amending price information. Amendments should be made by consistently bringing the selected price information on the terms of sale of goods and their technical specifications to the conditions and characteristics of the product being evaluated, taken as a standard.

10. Prices of international exchanges, trades, auctions
Exchange prices- prices for transactions concluded using the services of a special intermediary - the stock exchange. The peculiarity of the exchange commodity market is determined by the following main features: exchange goods are mass standard goods, therefore transactions are regular, there are many sellers and buyers, i.e. the exchange market is a competitive market that does not require government intervention. As a result, exchange prices are considered the most objective price information.

Auction prices- prices reflecting the course of sales at auctions. In the classical sense, an auction is a seller's market. Classic auction goods are non-standard, the demand for them usually exceeds the supply, so the auction is characterized by an upward trend in prices.

Within the framework of the auction, there are:

§ the starting price at which the beginning of trading is announced;

§ the price of the auction step, i.e. the intermediate price that exceeds the starting price and is announced by the potential buyer;

§ the price of the actual sale, which exceeds the starting price by the sum of the prices of the auction steps.

Auction prices inform market participants about the possibilities of buying or selling goods at auction. Auction bidding begins with the announcement of the batch number of the goods (lot) and the starting price. The final price of the previous auction can be taken as the starting price. The starting price level contains information about the cost and quality of the goods, the balance of power between sellers and buyers, and the technique of bidding. The more often auctions are held, the smaller the price gaps. This is due to minor changes in production costs and market conditions over time. Usually, the actual sale of goods at auction is carried out at the maximum price offered by the buyer. Auction prices play a key role in the markets for furs, gems and antiques.

Bid prices(tender prices) - prices for a specialized form of trade based on the issuance of orders for the supply of goods or the delivery of contracts for certain work.

Classic bidding (tender) is a buyer-customer market, in response to the application of which proposals (offers) are received from potential sellers (offers). The general trend of price development here is downward: other things being equal, the customer prefers a cheaper offer. Unlike auctions, bidding is more closed and limited. Bidding prices are, as a rule, the object of state intervention, since a significant proportion of orders and contracts are regulated by rules established by the state.

The price information of auctions and tenders comes mostly irregularly.

FORMATION OF THE PRICE OF THE GOODS

Pricing factors are the conditions under which the level and structure of prices are formed. These factors are diverse, but they can be conditionally divided into three main groups: 1) basic, 2) opportunistic and 3) regulatory factors.

Basic pricing factors are mainly related to the costs of production and sale of goods. An increase in these costs, as a rule, leads to an increase in prices, a decrease in costs contributes to a decrease in prices. Since the dynamics of prices for the main production resources can be predicted, the basic pricing factors are the factors of the strategic plan.

The basic pricing factors include the natural, climatic and territorial conditions in which the enterprise operates, the transport component in costs, the level of technologies used, forms and methods of organizing production and labor. Basic factors give advantages to those enterprises and firms that have lower production costs.

opportunistic pricing factors are determined by the market situation, which depends on political, general economic (for example, inflation), social and other conditions, season, fashion, consumer preferences, etc. Since the market situation can be subject to fairly rapid and often unpredictable changes, then opportunistic pricing factors are referred to as tactical factors.

The prices for raw materials and semi-finished products react most sensitively and quickly to changes in market conditions. This is due to the short production cycle of their manufacture and a wide range of consumers. Prices for consumer durables (furniture, household appliances) behave similarly. Prices for machinery and equipment, the production cycle of which is quite long, react much more slowly to changes in market conditions.

There are markets where only market factors are involved in pricing. For example, the price of land and the rate of securities on the stock market are formed indirectly - through comparison with the value of fungible goods:

As the market develops and becomes saturated with goods and services, the role of basic factors in pricing decreases, while the role of market factors increases.

Market factors give advantages to those enterprises and firms that can quickly respond to changing market conditions. This requires careful preparation of production, flexible production system and highly qualified staff.

As practice shows, greatest success those enterprises and firms that skillfully use their advantages associated with both basic and opportunistic pricing factors achieve.

Regulatory pricing factors are associated with direct and indirect government intervention in the economy.

In a free market, there are also demand factors, consumer choice factors and supply factors.

Demand factors form demand price, i.e., the maximum price that buyers are willing to pay for a particular product. Demand factors include:

- tastes and preferences of consumers;

- the size of their cash income and savings;

- consumer properties and quality characteristics of the goods.

When buying a product, the buyer shows a willingness to sacrifice some amount of other goods and services for the same amount of money. This willingness is determined consumer choice factors which depend on the prices and utility of goods and themselves, in turn, influence these parameters.

Supply Factors associated primarily with the costs of production and sale of goods. They form offer price- the minimum price at which sellers are willing to offer this product on the market.

Pricing factors act simultaneously in different directions and at different speeds, some factors contribute to lower prices, others cause them to rise. The following factors contribute to price reduction:

- growth of production (import) and saturation of the market with goods;

- reduced demand for goods;

- increased competition between sellers (manufacturers);

— reduction of production costs;

— reducing the tax burden on sellers (manufacturers);

— expansion of direct links between buyers and producers of goods (reduction in the number of intermediaries).

The action of these factors does not always lead to a real reduction in prices, it can only contribute to their reduction.

Arguing from the opposite, we can name the factors that cause prices to rise:

- reduction of production (import) and supply of goods on the market;

- increase in demand for goods;

- reduced competition between sellers (manufacturers), leading to market monopolization;

- increase in the cost of production;

— increasing the tax burden on sellers (manufacturers);

— increase in the number of intermediaries on the way of movement of goods from producers to end consumers; as well as:

- improving the quality of goods;

- inflation caused by an increase in the amount of money in circulation;

- Excessive demand.

Pursuing its pricing policy, the company must identify, analyze and take into account all factors that can influence the prices of goods and services. Most of the factors cannot be controlled by the firm (external factors), a smaller part depends on the actions of its management and staff (internal factors).

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The market pricing process consists of 6 stages:

1. Identification of external factors affecting prices

2. Setting pricing goals

3. Choice of pricing method

4. Development of a pricing strategy

5. Market price adjustment

6. Insurance pricing

from adverse factors

1. Identification of external factors affecting prices

Consumers

State Þ Price Ü Competitors

Members of distribution channels

Consumers: The market price of a commodity is determined by supply and demand. The volume of demand for a product depends on the price of this product, the prices of complementary and substitute products, on the level of well-being and income of buyers, on their tastes and preferences, on consumer expectations, on the seasonality of the need satisfied by the product, on the number of buyers. The supply of a product depends on the offer price for this product, on the prices of competing products and on goods produced together with this product, on the level of technology, taxes, resource fees, and the number of sellers. The demand function of price is inversely related, and the supply function of price is directly proportional. The sensitivity of supply and demand to changes in factors is measured by elasticity, the price elasticity coefficient shows how many percent the sales volume will change when the price changes by 1%:

Coeff. price elasticity \u003d ((Q 2 - Q 1) / Q cf) / ((P 2 - P 1) / P cf),

where Q 1 , Q 2— sales volume before and after the price change; P1, P2— price.

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System of pricing factors

Entering the path of entrepreneurial activity, each businessman must clearly understand the factors under the influence of which the price is formed. Price formation is carried out, as a rule, according to a single scheme (Fig. 8.1)

Rice. 8.1 Pricing steps

In the process of pricing, socio-economic conditions are analyzed in a complex way, pricing strategy and tactics are developed, and an acceptable method of pricing and price insurance is determined for the company.

From the dual nature of price, it follows that the main pricing factors are the cost (costs) and use value (the ability to satisfy needs) of a particular product. The global pricing trend is determined by two laws: the reduction of time costs and the growth of use value per unit cost of socially necessary labor.

At the micro level, firm pricing is influenced by numerous environmental factors. Ignoring at least one of them is fraught with failure not only in the implementation of the developed pricing strategies, but also in the overall strategic objectives of the company.

The most significant factors influencing the formation of the market price are: costs, demand, competition, type and properties of goods, type of consumer (buyer), features of regulation of distribution channels, state regulation of pricing.

Costs are classified as production factors of pricing, they determine the level below which the permanent price of a product cannot fall. Distinguish between fixed, full, alternative costs. The most important goal of entrepreneurs, heads of firms is their activity in order to optimize profits.

The next factor that determines the dynamics and price policy of the company is the demand or reaction of the buyer to the price. In its purest form, the law of demand operates at the macro level and at the level of highly aggregated commodity groups. At the level of a particular commodity, the law of demand determines only the basic distribution of power: other things being equal, buyers will be able to buy more goods at a low price than at a high one. Demand in this case represents the result of the level of income.

The need to purchase, specific conditions, the attitude of the consumer to the brand, and other factors affect demand within the boundaries, as a rule, of one income group of buyers. First, the level of income allows the buyer to determine the price level of the necessary product available to him, then, within the group of products with a given price level, choose the desired product, taking into account secondary factors.

An increase in demand with an increase in prices for a particular product can be observed in the case of:

indispensability of the product;

the prestige of the product;

sale of goods, the price of which is perceived as the main indicator of quality;

· inflationary expectations in order to reduce future spending on relatively expensive goods;

the cheapest essential goods (in order to replace more expensive substitutes in the diet.

When studying the response and influence of demand, it is very important to know and take into account the price elasticity of demand. The latter is measured using the empirical elasticity coefficient, which shows the percentage change in demand for each percentage change in price:

where ∆ C, ∆ C - change in demand and price over time or during the transition from one consumer group to another;

C, C - the average, or base, value of demand and price.

A change in the price of a product of high price elasticity significantly changes the demand for it, therefore, pricing errors can be detrimental to the firm. Opportunities for price maneuver for inelastic goods are significantly limited.

A monopoly price increase to a certain level does not affect demand, but raising this threshold increases the likelihood of demand switching, i.e., the appearance of substitutes. This phenomenon has been named cross elasticity- the elasticity of the demand structure, the displacement of one product (A) by another (B) under the influence of the price factor:

a) if E n > 0 (an increase in the price of a product causes an increase in demand for another product), then these are interchangeable goods;

b) if E p< 0 (со снижением цены одного товара растет спрос на другой), то это дополняющие друг друга товары или один является составной частью другого;

c) if E p = 0 (or close to 0) - for independent goods.

Competitiveness remains in modern conditions the most important factor in price formation. The higher the degree of monopolization in the market, the greater the ability of individual firms to control prices. The pricing policy of individual firms depends on a number of competitive factors:

1) the number, size of competitors-sellers and the degree of aggressiveness of their policies;

Vehicle valuation is a service for determining the market value of a vehicle on the current date, taking into account its physical and functional wear. Information about the cost of a car may be needed by its owner in a variety of ways. life situations. So, for example, a car valuation is necessary to exercise one's inheritance rights, or in order to most profitably sell a car on the open market.

COST OF VEHICLE EVALUATION

The cost of the Car Appraisal service includes all overhead costs associated with the provision of Appraisal services (inspection, transportation costs, cost of communication services, information search, etc.), as well as courier delivery of the report.

DOCUMENTS REQUIRED FOR VEHICLE EVALUATION

Vehicle registration certificate

Passport of technical means

Passport data of the customer of the assessment
A spread of the first page of the passport, as well as a page with registration at the place of residence (stay).

Depending on the specific situation, the specialists of the appraisal company Appraiser will consult you free of charge on the possibility of assessing the car if certain documents are missing.

VEHICLE EVALUATION PROCESS

1. Coordination with our managers of a convenient time for inspecting the car being assessed and choosing a convenient payment method.

2. Inspection of the car being assessed.

3. Calculation of the market value and preparation of a valuation report.

4. Delivery of the report.

Car valuation by specialists of Appraiser valuation company is an opportunity to organize a car inspection at any time convenient for you, including weekends.

PRICE FORMING FACTORS IN CAR EVALUATION

There are many factors that influence the market value of a car. Of these, the most important role is played by the technical condition of components and parts, as well as the appearance of the object under study. In addition, specialists pay great attention to indicators of wear and tear of the vehicle. This takes into account not only physical wear, but also functional. In some cases, it is this type of car wear that directly affects its value, significantly reducing it.

Appraiser appraisal company specialists will try to identify, take into account in the calculations and draw the attention of the end users of the car appraisal report to all factors that significantly affect the market value.

OBJECTIVES OF VEHICLE ASSESSMENT

There are many different circumstances in which you may need a vehicle appraisal. So, the most common and frequently occurring of them:

Drawing up a donation agreement for a car.
Registration of an agreement when making a transaction for the sale or purchase of an already operated vehicle. A vehicle valuation report will help determine the most appropriate and reasonable price for an object. If you need to confirm the market value of the vehicle, you can submit an appraisal report prepared by experienced specialists from the Appraiser appraisal company.
Property disputes in court, including litigation over the property of former spouses. In this case, it is necessary to determine the value of all jointly acquired property, often including a car.
Inheritance of a vehicle. In such a case, a car valuation is necessary to determine the notary fee. In addition, there are special requirements for such an assessment. The cost of the object should be determined by a professional independent company that has all the documents that confirm the right to engage in such activities. In addition, the assessment of the car must be carried out on the date of death of the previous owner of the property.
Obtaining a large loan from a banking organization, using a personal car as collateral. However, the owner should take into account that with such an assessment goal, the specialist will determine the salvage value of the car, that is, the price for which the bank will be able to sell your property in a short time in case of non-payment of the loan taken.
1.4. Pricing Factors

As a rule, the liquidation value of a car differs from the market value by 25-30% downwards.
Valuation of a car for the purposes of collateral in a bank.
Renting a car. Accurately determining the value of the vehicle will help the owner calculate the most favorable rental rate for him, as well as monetary compensation in case the tenant damages the property.

Businesses and organizations may also need to estimate the value of a car. So, for example, the conclusion of the appraiser will help legal entities:

to recalculate the amount of fixed assets of the organization.
optimize the tax base.
contribute vehicle as a property contribution to the authorized capital of the enterprise.
redistribute shares in the business among its organizers.
conclude a car insurance contract with the insurance company, determine the amount of payment in the event of an insured event.
transfer the car to another person by proxy.
sell the car (for example, through an auction, or to employees of the owner company).
settle property disputes in court or enforce decisions of judicial authorities.
get a bank loan secured by the company's property

appraisal company specialistsAppraiser can make a Vehicle Appraisalfor any purpose.

System of pricing factors. Factors of direct and indirect impact on the price. Production price. Market price and market value. Rent principle of pricing.

The state of the monetary sphere. The influence of the purchasing power of money and exchange rates on prices. The impact of inflation on prices.

Price regulation. Types of state regulation of prices. Direct regulation: “freezing” of prices; monopoly price controls; setting boundaries and price measurement ranges; indirect price regulation: subsidizing, lending, tax policy, depreciation policy.

Interaction between prices and taxes. Interaction of prices and financial and credit system.

Finance and credit as value categories derived from price, their interdependence.

Influence of prices on the formation of finance at the macro- and micro-levels of the economy.

Structural elements of price as a source of creation of monetary funds at all levels of management. Factors that determine net income and its share in the price of goods: reduction in production costs, increase in sales, change in the price level.

Methods of withdrawing a share of net income to centralized funds. The relationship between the formation of the revenue part of the federal budget and the taxation system.

73. Price, pricing factors.

Solution of this problem in the Russian economy * .

Dependence of the expenditure part of the federal budget on the level and dynamics of prices.

Formation of monetary funds of enterprises and the price system. Profit distribution methods and the main directions of its use at the micro level of management.

The price system and its impact on the stability of monetary circulation, the stability and strengthening of the country's monetary unit, the rational alignment of the balance of cash income and expenditures of the state and the population, smoothing out the negative processes of cash migration.

Prices and credit. Price dynamics and their impact on resources and credit limits.

The impact of credit on production efficiency, cost reduction and product price.

Interest on a loan as a specific price for the use of borrowed funds.

Interest rate calculation methods. Elements included in the interest rate, its dynamics. The main factors affecting the value of the interest rate. The ratio of the discount rate of the Bank of Russia and commercial banks. Influence of the inflation factor on the credit fee * .

Interrelation of the interest rate and the ratio of supply and demand for credit resources. Peculiarities of this dependence in Russia * .

The ratio of supply and demand; competition; product quality; volume of deliveries; relationship between seller and buyer; price franking.

Topic 4. Production costs and profit.
Their role in price formation

Definition of costs. Formation of costs at the manufacturer. Interdependence between price level, cost and profit.

Types of cost classification. Production cost * .

The effect of the law of diminishing returns in the formation of the cost. Profit under market conditions. Relationship between profit and entrepreneurial risk.

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Studopedia.org - Studopedia.Org - 2014-2018. (0.001 s) ...

Price is the most complicated integral of the modern economy. At first glance, the price is simple. The following price definitions are still classic: price is the monetary expression of value; price is cost plus profit.

It would seem that everything is simple, but this simplicity is deceptive. According to a number of well-known economists, price reform is the most difficult and dangerous moment in economic transformations. The expression "the price of reforms is the reform of prices" became winged.

The complexity of price and pricing lies in the fact that price is a market category. And "conjuncture" comes from the Latin word "connect, connect." This is a linkage, the relationship of economic, political, psychological, social factors. The influence of these factors on the development of the market is different, it is constantly changing. Price is the focus at which the force fields of market conditions converge. Today, the price may be determined by the cost factor, and tomorrow its level may depend on the psychology of the behavior of buyers. The color of the price, like a litmus, depends on the situation, the health of the economy. This is the price phenomenon.

The complexity of modern pricing lies in its multidimensionality. The planetary price system includes at least five blocks.

In modern pricing, there is a change in the proportion between theoretical and practical issues in favor of the latter. At the same time, in practice, the more successful the solution of specific issues, the larger their assessment.

The interpretation of price as an economic category is the more accurate, the more precisely the tasks, price functions and price-forming factors are defined in given economic conditions.

Main List pricing tasks, as economic practice shows, is common to any modern state, but varies depending on the types and stages of economic development.

covering the costs of production and ensuring profits sufficient for the normal functioning of the manufacturer;
taking into account the interchangeability of products in the formation of prices;
solution of social issues;
implementation of environmental policy;
solution of foreign policy issues.

Covering the costs of production and ensuring profits is a requirement of the seller-manufacturer and intermediary. The more favorable the market situation for the manufacturer, that is, the higher the price he can sell his products, the more profit he will receive.

The second task - taking into account the interchangeability of products - is the main requirement of the consumer. He is not interested in what the costs of manufacturing a given product are. If the same product is offered on the market at different prices, the consumer will naturally prefer the one offered at the lower price. If a higher quality product and a lower quality product are offered at the same price, the consumer will prefer the higher quality product.

The remaining tasks (from the third to the fifth) arose already at the present stage of pricing, it is especially important to solve them as we move from an undeveloped, spontaneous market to a regulated market.

In the conditions of a developed market, the balance of the economy is achieved not so much with the help of a spontaneous regulator, but rather through the implementation of a state policy designed to express national interests.

Under these conditions, price is a function of both the market and the state. Environmental, political, social issues, issues of stimulating scientific and technological progress are, in fact, national issues. Therefore, in the absence of a body representing national interests, the above issues, in principle, cannot be resolved.

The main price leverage in resolving foreign policy issues is the supply at preferential prices or the purchase at inflated prices of products for countries that are favored by the policy.

Social pricing policy (the third task) in all countries manifests itself mainly in the freezing or relative reduction (increasing compared to prices for other goods to a much lesser extent) in prices for goods of increased social importance (children's goods, medicines, essential foodstuffs and etc.).

To stimulate the production of modern (from a national standpoint) means of production, the state develops and implements a system of incentive prices (removing upper price limits, setting lower price limits to strengthen the competitiveness of producers, etc.). In order to stimulate the speedy introduction of progressive means of production, the state is developing a preferential price system for consumers. The difference between relatively high producer prices and relatively low consumer prices is often subsidized by the state.

An example of the use of price levers in the framework of environmental policy (fourth task) is the resolution of the problem of improving the processing of raw materials, processing and disposal of waste using prices. At the same time, the most important issues are the assessment of secondary resources, waste and products of their processing.

Price functions are closely related to pricing tasks. Price functions- these are the most general properties that are objectively inherent in prices and are characteristic of any kind of prices. The most widespread point of view in the economic literature is that price has four functions: accounting, redistributive, stimulating, and the function of balancing supply and demand.

Pricing Factors- these are the conditions in which the price structure and level are formed. All types and types of pricing factors, as economic practice shows, can be divided into three main groups:

basic (non-opportunistic);
opportunistic;
regulatory related to public policy.

Basic (non-opportunistic) factors predetermine a relatively high stability in the development of price indicators.

The effect of this group of factors is different in different types of markets. Thus, in the conditions of the commodity market, non-opportunistic factors are considered intra-production, costly, cost, since the movement of prices under the influence of only these factors is unidirectional with the movement of costs.

The action of market factors is explained by the volatility of the market and depends on political conditions, the influence of fashion, consumer preferences, etc.

Regulatory factors are the more obvious, the more active the intervention of the state in the economy. Price restrictions on the part of the state may be advisory or rigid administrative in nature.

As the market develops and becomes more and more saturated with goods and services, the role of market factors increases. Currently, there are types of markets and groups of goods (for example, land and securities), in respect of which only market factors are used.

They are evaluated indirectly through comparison with the value of interchangeable goods.

In a modern economy, prices mediate all stages of production, thus representing a single price system. The subordination of the stages of social reproduction is the basis for the internal interconnection of prices within a single system.

Price system- this is a single, ordered set of different types of prices that serve and regulate the economic relations of market participants.

A change in the level, structure of one type of prices entails a change in other types of prices, which is due to the relationship between the elements of the market mechanism and market entities. Each block of prices and each individual price, being part of the price system, bears a strictly defined economic burden. In the modern pricing environment, there are different pricing systems that are formed depending on the features and scale of servicing modern markets.

Exist different kinds prices and price grouping by the service sector of the national economy, as well as by the degree of rigidity of their regulation by the state.

For example, the grouping of prices by the service sector of the national economy includes such a category as tariffs - prices for goods of a special kind - services. The peculiarity of the service is that it does not have a specific material form. In this regard, the buyer at the time of purchasing the service does not have the opportunity to get a complete picture of its quality. The buyer judges the purchased service according to the information about the service seller. When providing a service, the moment of production, as a rule, coincides with the moment of consumption, that is, there is no need for an intermediary. This determines the features of the assessment of services and explains the existence of the concept of "tariffs for services", although it is more correct to use the concept of "prices for services".

Depending on the service sector, there are wholesale tariffs (tariffs for freight transport, communications and other services for legal entities) and retail tariffs, that is, tariffs for services for the population.

In the grouping of prices according to the degree of rigidity of regulation by the state, market (free) and regulated prices are distinguished.

Market (free) prices are prices free from direct government price intervention. At the same time, they are not free from the action of other levers that do not directly affect the level and structure of prices. Thus, the development of prices depends on the income tax. Progressive income tax rates make it unprofitable for the seller to increase prices, but these prices are correctly called free or market prices, since there is no direct restriction on them.

At the same time, as world practice shows, the scale of free pricing is inversely proportional to the degree of general government intervention in the economy.

Regulated prices - these are prices, the change of which is allowed within certain limits and according to a certain methodology established by the state. In a market economy, prices of this type are quite common and are set for goods and services that are traditionally the object of increased state control (leading types of raw materials, fuel, main transport, communications, products of increased social importance, etc.).

For an effective business organization, it is necessary to have a clear understanding of what price is, pricing factors, what are the principles for pricing goods and services. Let's talk about how and what prices are made up of, what functions they perform and how to correctly determine the adequate cost of products.

The concept of price

The basic element of the economic system is the price. This concept intertwines various problems and aspects that reflect the state of the economy and society. In its most general form, the price can be defined as the number of monetary units for which the seller is willing to transfer the goods to the buyer.

In a market economy, the same goods can cost differently, and the price is an important regulator of the relationship between market entities, an instrument of competition. Its value is influenced by many pricing factors, and it consists of several components. The price is volatile and subject to permanent changes. There are several types of prices: retail, wholesale, purchasing, contractual and others, but all of them are subject to a single law of formation and existence in the market.

Price functions

A market economy differs from a regulated one in that prices have the opportunity to freely realize all their functions. The leading tasks that are solved with the help of prices can be called stimulation, information, orientation, redistribution, balancing supply and demand.

The seller, by announcing the price, informs the buyer that he is ready to sell it for a certain amount of money, thereby orienting the potential consumer and other traders in the market situation and informing them of his intentions. The most important function of establishing a fixed cost of goods is to regulate the balance between supply and demand.

It is with the help of prices that producers increase or decrease the quantity of output. A decrease in demand usually leads to an increase in prices and vice versa. At the same time, price-forming factors are a barrier to discounting, since only in exceptional cases can manufacturers lower prices below the cost level.

Pricing Process

Price setting is a complex process that takes place under the influence of various phenomena and events. It is usually carried out in a certain order. First, the pricing objectives are determined, they are closely related to the strategic objectives of the manufacturer. So, if a company sees itself as an industry leader and wants to occupy a certain market segment, it seeks to set competitive prices for its product.

Further, the main price-forming factors of the external environment are evaluated, the features and quantitative indicators of demand, and the market capacity are studied. It is impossible to form an adequate price for a service or product without assessing the cost of similar units from competitors, so the analysis of competitors' products and their cost is the next stage of pricing. After all the "incoming" data are collected, it is necessary to select pricing methods.

Typically, a company forms its own pricing policy, which it adheres to for a long period. The final stage of this process is the final price fixing. However, this is not the final stage, each company periodically analyzes the established prices and their compliance with the tasks at hand, and based on the results of the study, they can reduce or increase the cost of their goods.

Pricing principles

The establishment of the cost of a product or service is not only carried out according to a certain algorithm, but is also carried out on the basis of basic principles. These include:

The scientific principle is not taken “from the ceiling”, their establishment is preceded by a thorough analysis of the external and internal environment of the company. Also, the cost is determined in accordance with objective economic laws, in addition, it must be based on various pricing factors.
The principle of target orientation. The price is always a tool for solving economic and social problems, so its formation should take into account the tasks set.
The pricing process does not end with the establishment of the cost of goods in a specific time period. The manufacturer monitors market trends and changes the price in accordance with them.
The principle of unity and control. State bodies constantly monitor the pricing process, especially for socially significant goods and services. Even in a free, market economy, the state is assigned the function of regulating the cost of goods, to the greatest extent this applies to monopolistic industries: energy, transport, housing and communal services.

Types of factors affecting the price

Everything that affects the formation of the value of goods can be divided into external and internal environment. The former include various phenomena and events that the manufacturer of the product cannot influence. For example, inflation, seasonality, politics, and the like. The second includes everything that depends on the actions of the company: costs, management, technology. Also, pricing factors include factors that are usually classified by subject: manufacturer, consumers, state, competitors, distribution channels. Costs are separated into a separate group. They directly affect the size of the cost of production.

There is also a classification within which three groups of factors are distinguished:

not opportunistic or basic, i.e. associated with a stable state of the economy;
opportunistic, which reflect the variability of the environment, these include fashion factors, politics, unstable market trends, consumer tastes and preferences;
regulatory, related to the activities of the state as an economic and social regulator.

Basic system of pricing factors

The main phenomena that affect the cost of goods are indicators that are observed in all markets. These include:

Consumers. The price is directly dependent on demand, which, in turn, is determined by consumer behavior. This group of factors includes indicators such as price elasticity, buyers' reactions to them, market saturation. The behavior of consumers is influenced by the marketing activity of the manufacturer, which also entails a change in the cost of goods. The demand, and accordingly the price, is influenced by the tastes and preferences of buyers, their income, even the number of potential consumers matters.
Costs. When setting the price of a product, the manufacturer determines its minimum size, which is due to the costs that were incurred in the production of the product. Costs are fixed and variable. The former include taxes, wages, production services. The second group consists of the purchase of raw materials and technologies, cost management, and marketing.
Government activities. In different markets, the state can influence prices in many ways. Some of them are characterized by fixed, strictly regulated prices, while others - the state only controls the observance of the principles of social justice.
Merchandising channels. When analyzing price-forming factors, it should be noted the special significance of the activities of the participants in the distribution channels. At each stage of the promotion of products from the manufacturer to the buyer, the price may change. The manufacturer usually seeks to retain control over prices, for which he has various tools. However, the retail and wholesale prices are always different, which allows the product to move in space and find its final buyer.
Competitors. Any company seeks not only to fully cover its costs, but also to maximize profits, but at the same time it has to focus on competitors. Since too high prices will scare away buyers.

Internal factors

Those factors that the manufacturing company can influence are usually called internal. This group includes everything related to cost management. The manufacturer has various opportunities to reduce costs by looking for new partners, optimizing the production process and management.

Also, internal pricing factors of demand are associated with marketing activities. The manufacturer can contribute to the growth of demand by conducting advertising campaigns, creating excitement, fashion. Internal factors also include product line management. A manufacturer can produce similar products or products from the same raw material, which helps to increase profitability and reduce prices for some products.

External factors

Phenomena that do not depend on the activities of the manufacturer of goods are usually called external. They include everything related to the national and global economy. Thus, the external pricing factors of real estate are the state of the national economy. Only when it is stable, there is a steady demand for housing, which allows prices to rise.

Politics is also an external factor. If a country is at war or protracted conflict with other states, then this will necessarily affect all markets, the purchasing power of the consumer and, ultimately, prices. External are the actions of the state in the sphere of price control.

Pricing Strategies

Given various pricing factors, each company chooses its own path to the market, and this is realized in the choice of strategy. Traditionally, there are two groups of strategies: for new and for existing products. In each case, the manufacturer relies on the positioning of its product and on the market segment.

Economists also distinguish two types of strategies for a product already existing on the market: a sliding, falling price and a preferential price. Each way of setting prices is associated with a market and marketing strategy.

The whole variety of factors affecting the formation of prices in the modern economy can be divided into three groups:

basic (non-opportunistic);
opportunistic;
regulating.

The basic factors in the conditions of the commodity market are various costs - intra-production and non-production. The change in prices under the influence of these costs occurs in the same direction as the change in costs.

Market factors are a consequence of market volatility and depend on macroeconomic conditions, consumer demand etc.

Regulatory factors are determined by the degree of state intervention in the economy.

In addition, the factors that determine price fluctuations up or down from the cost of goods are divided into internal and external. Internal factors depend on the manufacturer, its management and team. External, as a rule, do not depend on the enterprise.

The cumulative effect of these factors ultimately leads to the establishment of prices that ensure the balance of economic activity.
Process and pricing principles

The process of pricing is the setting of a price for a particular product. It consists of six stages (see the figure below).

The decision to establish a particular price for a product is largely determined by external factors in relation to the enterprise. In some cases, these reasons significantly reduce the freedom of the enterprise in setting prices, in others they do not have a noticeable effect on the freedom of pricing, in the third, they significantly expand this freedom.

The main principles of pricing are:

scientific validity of prices - the need to take into account objective economic laws in pricing. The scientific validity of the prices set is facilitated by a thorough collection and analysis of information on current prices, cost levels, the ratio of supply and demand, and other market factors;

Stages of the pricing process

Rice. Stages of the pricing process

the principle of targeted pricing - the company must determine what specific economic and social tasks it will solve as a result of using the chosen approach to pricing;
the principle of continuity of the pricing process. According to this principle, products at each stage of its manufacture have their own price. In addition, in a real market situation, constant changes are made to the level of prices in the market;
the principle of unity of the process of pricing and control over compliance with prices. The purpose of control is to verify the correct application of the pricing rules established by law.

Pricing Strategies- this is the choice by the enterprise of the possible dynamics of changes in the initial price of goods in market conditions, which best suits the purpose of the enterprise. The pricing strategy will depend on which product the company sets the price for: a new one or an existing one on the market.

Strategies for setting prices for new products. First, you can set the highest possible price for a new product, focusing on people with high incomes or those for whom the price factor is not the main factor, but consumer properties and quality characteristics of the product are important. When the initial demand, and with it the sales, increase at the expense of the segment of people with average incomes, the demand will decrease somewhat, lowering the price again. Then you can make your product available for mass consumption.

Thus, the strategy will be to consistently step-by-step coverage of various profitable market segments. This strategy is known in the literature as the skimming strategy. The enterprises that have chosen it are more focused on short-term goals (quick financial success) than on long-term goals (ensuring such success in the future).

If the company's product begins to produce competitors, you can start the introduction of a new product with a low price. This strategy will allow the company to gain a certain market share, prevent competitors from entering the industry and force out outsiders, increase sales and take a dominant position in the market. Further, if the danger of the introduction of competitors does not decrease, it is possible, by reducing costs, to lower prices even more, or, by improving the quality and increasing the costs of scientific and technical development, to raise prices, securing leadership in terms of quality indicators. If there is no danger of competition, you can raise or lower the price in accordance with demand. However, one rule must be remembered: when implementing a strategy, it is possible to increase the price only if there is confidence that the product is recognized by the consumer, recognizable by him.

A strategy focused more on long-term goals has been called a strategy of sustainable implementation.

There are two main types of pricing strategies for existing products:

setting a moving falling price;
preferential price strategy.

The sliding falling price strategy is a logical extension of the cream skimming strategy and is effective under the same conditions. It is used when the company is reliably insured against competition. The bottom line is that the price consistently slides along the demand curve, i.e. varies according to supply and demand.

Preferential price strategy- continuation of the strategy of sustainable implementation. It is used when there is a danger of intrusion of competitors into the area of activity of the enterprise. The essence of this strategy is to achieve an advantage over competitors (real or potential) in terms of costs (the price is set below the prices of competitors) or in quality (the price is set above the prices of competitors so that the product is evaluated as prestigious, unique).

In general, price is the most important factor stimulating or discouraging sales, influencing the development of production, its efficiency, affecting competitors.

Price- one of the elements of the marketing mix, so it is determined taking into account the choice of strategies relative to other elements of the marketing mix.

The value of the price is influenced by internal factors (goals of the organization and marketing, strategies in relation to individual elements of the marketing mix, costs, pricing formation) and external (type of market; assessment of the relationship between the price and value of the product, carried out by the consumer; competition; economic situation; possible reaction of intermediaries; state regulation).

Possible common goals of the enterprise, influencing the pricing policy, are the goals of survival and development. As the goals of marketing activities, one can consider obtaining an acceptable amount of profit, increasing market share, leadership in the field of product quality.

As F. Kotler notes, good pricing begins with identifying needs and assessing the relationship between price and product value. Each price determines a different amount of demand, which characterizes the consumer's response to the market offer. The dependence of price on the magnitude of demand is described using the demand curve. The demand curve shows how much of a product will be bought in a certain market for a fixed period of time at different price levels for this product. In most cases (but not always), the higher the price, the lower the demand (an exception, for example, is the demand for prestige goods). To determine the degree of sensitivity of demand to price changes, an indicator of its price elasticity is used, defined as the ratio of the percentage change in the quantity demanded to the percentage change in price.

In the general case, the elasticity of demand is the dependence of its change on any market factor. Distinguish between price elasticity of demand and income elasticity of demand. On fig. 4.19 shows two demand curves, and an increase in price from C (to C (curve "a") leads to a relatively weak drop in demand (from C to C ^). In this case, demand is said to be inelastic. An increase in price on curve "b "leads to a significant increase in demand - this is elastic demand. The degree of demand elasticity to price changes characterizes the price elasticity of demand, defined as the ratio of the percentage change in demand to the percentage change in price. For example, with a price increase of 2%, demand fell by 10% - this means that the coefficient of elasticity of demand is -5 (the minus sign means an inverse relationship between price and demand).

This coefficient is usually, although not always, negative. From a practical point of view, if a decrease in price causes such an increase in sales and turnover that the losses from low prices are more than compensated, the demand qualifies as elastic, if not, this is evidence of inelastic demand; a situation where price changes do not affect either demand or supply in any way is a sure sign of the absence of market relations.

F. Kotler identifies three approaches to determining basic, initial prices: based on costs, on the opinion of buyers and on competitor prices.

by the most simple method determining prices based on costs is their establishment on the basis of a simple addition to the cost of the product of certain margins that characterize the costs, taxes and profit margins on the way the product moves from the producer to the consumer.

Function	Content
1. Accounting	- measures the costs of the enterprise for the production and circulation of goods, the volume of manufactured and sold products, the efficiency of the production of goods (profit, profitability, labor productivity, capital productivity); - acts as a tool for analysis, planning of all indicators in monetary terms; - allows you to compare benefits that differ in consumer characteristics;
2. Balancing supply and demand	- in the conditions of an unregulated market, it is a spontaneous regulator of social production, while there is a transfer of capital from one industry to another, the production of surplus products is curtailed and resources are released for the production of scarce; - in a regulated economy, other levers are used in addition to price: public financing, lending, tax policy, etc.;
3. Redistributive	- redistribution of the created social product between various areas economy, regions, population groups, etc., for example, by imposing high indirect taxes on prestigious goods, the state uses income from them to maintain relatively low prices for essential goods or forms funds for social protection of low-income categories of the population;
4. Stimulating	- encouraging or restraining the production and consumption of various types of goods, for example, the state removes price restrictions to stimulate the production of progressive products ( new technology, new products, high quality, saving resources) or optimizes the structure of personal consumption of the population by differentiating the rates of indirect taxes.

sign	Price types
1. Degree of market coverage	1. World prices reflect the world market conditions (prices of regular major transactions in hard currency) are determined by the price level of exporting countries, leading manufacturers, stock exchanges, auctions. 2. Internal prices - reflect the conjuncture of the national market. 3. Foreign trade prices - prices for exported and imported products are the link between world and domestic prices. 4. Industry prices characterize industry averages. 5. Regional prices reflect average indicators for the region. 6. Transfer(on-farm) prices are used for settlements between divisions of the same economic structure
2.Nature of the served turnover	1. Wholesale(sales) prices - prices at which industrial enterprises or their intermediaries sell products in large volumes, as a rule, by bank transfer. 2. Retail prices - prices at which goods are sold to final consumers for cash. 3. Purchasing prices - prices at which agricultural producers sell their products in large volumes to state and non-state bodies. 4. Public procurement prices- the prices at which the state. authorities are purchasing various types of products. 5. Prices for construction products: — estimated cost- the maximum amount of costs for the construction of the facility + planned savings; - list price price - the average estimated cost of a unit of final products (1m 2 of living space, painting, etc.); — negotiable the price is set by agreement between the customer and the contractor. 6. Tariffs- prices for services (transport, household, utilities ..)
3. Degree of state regulation	1. Loose- prices free from direct government price intervention. 2. Adjustable- prices, the change of which is allowed within certain limits and according to a certain methodology established by the state (leading types of raw materials, fuels, main transport, communications, products of increased social importance)
4. Inclusion in the price of transport costs	Types of prices are formed depending on how the costs of loading, transportation, unloading, insurance, customs clearance are distributed between the seller and the buyer. The more expenses the seller assumes, the more structurally complete the price is considered. Structurally less complete prices are used in cases where the production of goods is concentrated in a limited number of points, and the consumption network is wide. Structurally more complete prices are used: a) for the supply of special. products, the quality of which depends on the quality of transportation, the quality of installation at the consumer; b) when supplying standard products using special. transport (oil, gas); c) when supplying any types of products, when the seller pursues a policy of conquering the market for this product. In the domestic market, the term "free" is used to differentiate prices, showing to which point the supplier reimburses transportation costs: - EXW supplier- shipping costs are borne by the buyer; — ex-station of departure- the seller pays the costs of delivering the goods to the station of departure; — ex-car departure station- the seller also pays for loading into the wagon; — ex-carriage station of destination– the seller includes the railway tariff in the price; — ex-station destination- the price also includes the cost of unloading — ex-warehouse of the buyer- All shipping costs are included in the price. In foreign trade operations, the procedure for distributing costs is set out in the special. document: 13 types of prices are combined into 4 groups (E, F, C, D) from structurally less complete to more complete.
5. Forms of sales organization	1. Prices of actual transactions(contract) - prices at which an agreement is actually reached between the seller and the buyer and sealed in the form of a contract. 2. Exchange prices- prices for transactions concluded using the services of the exchange, these are the most objective prices, because exchange commodities are mass standard, transactions are regular, the market is competitive. 3.Auction prices are used for forest products, agriculture, fisheries, in the trade in tea, furs, furs, and dredges. stones, antiques and art, these goods, unlike exchange goods, have individual properties. An auction is a seller's market, because There are many buyers, and sellers - one or more, demand exceeds supply, so the price trend is upward. 4. Bid prices. Bidding is a buyer's market, in response to his application, offers from potential sellers are received, the price trend is downward. Trades are held for technically complex and capital-intensive products, for the construction of structures.
6. Time factor	1. Fixed price, its duration is not predetermined. 2. Seasonal price, the validity period is determined by the time period. 3. Step price involves a consistent reduction in prices at predetermined points on a certain scale.
7. Method for obtaining information about the price level	1. Published prices reported in special and branded sources of information, are the starting point from which the bargaining of prices begins when concluding transactions. 2. Estimated prices justified by the supplier for each specific order, taking into account its technical and commercial conditions.