The selection process for the pricing policy for goods of the problems and difficulties faced by each seller, where the process of selecting the best policy that achieve the greatest profit possible, and most important of these policies include:
1 - pricing policy interrelated: When you apply this policy, the Foundation produces products of different heterogeneous goods so as to achieve the latter benefits the consumer and therefore determined to be interrelated prices taking into account the quality and degree of the commodity boom with the study of the market and here we include two types of policies:
A - Policy gross margin fixed: preferred some producers use the proportion of leading fixed margin product, as higher costs raise the number gross margin, which in turn leads to higher price accordingly, and vice versa in the case of decline, and also noted that the commodity that is traded is slow can be the high proportion of gross margin and vice versa in the case of goods traded quickly.
This policy is frequently used with the retailers, because what distinguishes it not drop or rise only if the selling price decreased or increased the purchase price.
One of the reasons that led to the spread of this policy include:
1 - lack of knowledge of the product distributor or the amount of demand for particular use is there an actual way to determine the price does not require knowledge of the potential demand.
2 - simplicity of these methods to calculate the selling price.
3 - Some institutions use this policy in order to improve customer relations audience.
B - a policy variable gross margin: The following policy be producers are not constrained by adding a fixed percentage of the gross margin but are changed and adjusted according to demand conditions on the item, if the seller is trying to add a large margin of a large total, and vice versa if the request is small.
The high percentage of the gross margin if the product of a long-term and smaller for goods with a short term.
One of the reasons leading to the non-proliferation in the use of this policy include:
1 - find out how much demand is necessary to define the rate to be used in this case, but his knowledge is not as easy as that you need to know the time and costs.
2 - does not want sellers to reduce the percentage of gross margin in periods of business recession and the reason for this is that recessions cause a decrease in the amount of sales, leading to increased costs, if the seller follow the policy variable and the gross margin by reducing the proportion used may not cover costs.
2 - speculative pricing policy:
According to the following policy is placing the sale price based on the personal ability to analyze several factors, including:
Item price competition, cost of item produced, potential expenses when selling (advertising expenses, advertising expected agreement), the degree of product quality in relation to the quality of the sold item that already exists in the market.
After analyzing these factors, the seller establishes the price based on the analysis of personal importance of these factors here and the seller may specify a price different from the price determined by the other, if Prices will be different depending on personal capabilities of each vendor on the basis of this policy.
What distinguishes this policy, they are almost non-existent as the limited use for goods as an example of the rare effects and individual commodities or precious jewelry and rare postage stamps.
3 - experimental pricing policy: He tried to carry out a range of prices in the market or the sale of a different price then determines the most appropriate and cost-effectiveness of the institution.
4 - Load the pricing policy: The process of downloading a consumer when you buy a commodity at a token price of other goods, and institutions to use this method to dump stocks exhibition of recession.
5 - Policy of recruitment: The content of this policy that the seller takes advantage of a particular commodity at the expense of another commodity to sell a commodity at a low price on the costs of production and thus may bring loss and corresponding sale of other goods at a profit to cover the loss of the goods first, and the goal of this policy is to attract a large number of consumers and customers to purchase the item that a low price and thereby increase the goodwill, and in order to be successful this policy must be the product that is known to reduce the price by the consumer and be aware of the low price compared to other vendors.
It is noted that practically every institution shall follow different policies in determining the prices of their goods, each institution determines the appropriate price according to what surrounds its activity from the influences are diverse and disparate conditions-term example, the policy speculative fit in the pricing of goods changing style, jewelry imitation effects and fit in the pricing of consumer goods.
And therefore can not judge the efficacy of any policy of the policies mentioned above as each institution, which lend themselves to apply the policy in line with their circumstances.
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