What are the factors that affect the pricing of a product

Updated on Financial 2024-03-10
11 answers
  1. Anonymous users2024-02-06

    Answer: 1. Factors that affect product pricing.

    1. Product research and development.

    2. Manufacturing 3. Storage.

    4. Raw materials.

    5. Transportation and other costs.

    2. Pricing strategy.

    1. Discounted pricing.

    2. Psychological pricing.

    3. Differential pricing.

    4. Regional pricing.

    5. Portfolio pricing.

    6. Pricing of new products.

    3. Pricing objectives.

    There are many goals for pricing, and different businesses will have different goals at different times and different business units.

    The clearer a company or department is about its goals, the easier it will be to formulate. Generally speaking, there are several main objectives: maximum current profit and profit margin.

    The highest current income, the highest sales growth, the highest market skimming, product quality leadership, and survival.

    1. The highest current profit.

    Profit target is an important part of the company's pricing target, and obtaining profit is a necessary condition for the survival and development of the enterprise.

    It is the direct driving force and ultimate goal of business operation.

    2. Highest sales.

    In order to enter the top 500, many companies first increase their sales scale through mergers and acquisitions, or seek to go public, and they just need to increase sales, so different companies have different purposes in different periods.

    3. Highest market share.

    Some companies want to maximize market share, believing that the higher the current market share, the greater the chance of future profitability.

    4. The highest market skimming.

    Many companies develop ** to "skimm" the market through their own innovations and product differentiation.

    5. Leading product quality.

    Creating products with high perceived quality, taste and status is the pursuit of many enterprises.

    6. Maintain survival.

    When companies are faced with overcapacity, fierce competition, or changing consumer demand, they make it their primary goal to survive.

  2. Anonymous users2024-02-05

    1. The pricing of the product depends on many factors, mainly including:

    l) Cost. The cost of product research and development, manufacturing, storage, raw materials, transportation and other costs directly determines product pricing.

    2) Expected profits. After the cost is determined, the business may also have a fixed expected profit percentage, such as %, etc.

    3) Capital turnover. If you need the company's capital turnover to be fast, you have to set the ** at the most attractive level for users. And the most attractive ** level, the profit is not necessarily the largest.

    4) Supply and demand. The market demand is strong, and the product can float upward. A large number of products are unsalable, and ** has to fall accordingly.

    5) Competitors**. As the flow of information becomes more and more transparent, especially on the Internet, it is easy to make comparisons, and competitors also affect the company's own pricing to a large extent.

    6) Brand image. When a business or brand focuses on the high-end market and offers the highest level of products or services, it may be largely unrelated to cost. ** Lowers or may even reduce brand image and sales.

    7) Strategy. Various forms of **, discounts, and preferential combinations will affect the final pricing of the product.

    2. Product pricing method.

    Combining different pricing factors can lead to different pricing methods, such as:

    1) Cost + expected profit. This is the most common and safest pricing method. The total cost of the product plus the profit that the company thinks is suitable is the shipment.

    2) Competitor tracking method. In order to guarantee the sales of a product, sometimes** it must be on par with competitors. When competing, the hand adjusts**, and you must also adjust with it.

    3) Seize the market at a low price. In order to seize market share as soon as possible, or to survive, in order to speed up capital turnover, it may be necessary to use low prices, and even to seize the market with products sold below the cost. When there is a strong follow-up sales strategy, it is also a good pricing method to seize the market at a low price.

    4) Profit maximization. Accurately calculate the relationship between **, sales, revenue, and profit figures, and set ** at the level of maximum profit.

    5) Value pricing. The best of the product or service has nothing to do with the cost, but is calculated according to the benefits and value brought to the user, and this value is often a subjective judgment, such as software and consulting services. In the best-case scenario, it can even be said that the amount agreed upon is what is provided.

  3. Anonymous users2024-02-04

    Product pricing considerations determine what kind of product pricing strategy to adopt.

    First, the cost of the product;

    Second, the added value of the product;

    Third, the positioning of the product. For example, it is also a health care product, and brain platinum is positioned as a gift, which is higher;

    Fourth, the status of the product in the industry;

    5. What kind of cycle is the market to which the product belongs, whether it is the growth stage or the introduction stage, etc.;

    6. What is the marketing strategy adopted by the company?

  4. Anonymous users2024-02-03

    First of all, the quality of the product, which is also related to the brand, as well as market demand, people's desire to buy, the average market **, and the shipping cost

  5. Anonymous users2024-02-02

    There are many factors, and there are five basic factors. Product cost, market demand, competitive factors, control, and corporate pricing targets.

  6. Anonymous users2024-02-01

    The internal rate of return refers to the discount rate when the annual net cash flow of the investment plan is discounted so that the present value of the obtained is exactly equal to the present value of the original investment, so that the net present value is equal to zero.

    The basic principle of the implied rate of return method is that when calculating the net present value of the scheme, the expected return on investment is used as the discount rate, and the net present value result is often greater than zero or less than zero, which indicates that the actual return on investment that the scheme may achieve is greater than or less than the expected return on investment; And when the NPV is zero, it means that the two rates of return are equal. Dongao Intermediate Title Channel "Na Writing Years" was sorted out and released.

    According to this principle, the implied rate of return method is to calculate the discount rate at which the net present value is equal to zero, and this discount rate is the actual possible rate of return on investment of the investment plan.

    1.When the net cash flow is equal each year in the future.

    Equal annual net cash flow is a form of annuity, by checking the present value coefficient table of annuity, the present value of future net cash flow can be calculated, and its net present value is zero, there are:

    Net cash flow in the future annuity present value coefficient - present value of the original investment amount = 0

    After calculating the present value coefficient of annuity when the net present value is zero, the corresponding discount rate i can be found by checking the present value coefficient table of annuity, which is the implied rate of return of the plan.

    2.When the net cash flow is not equal in the future.

    If the future annual net cash flow of the investment plan is not equal, the distribution of the net cash flow in each year is not in the form of annuity, and the implied rate of return cannot be calculated by directly checking the present value coefficient table of the annuity, but the case-by-case test method is required.

  7. Anonymous users2024-01-31

    1 Product Cost**.

    2 Taxes. 3 Profit margins.

    4 Unit price of similar products.

    5 Local price levels.

    All things considered.

  8. Anonymous users2024-01-30

    Supply and demand are everything.

    When the lungs are canon, the vinegar is sold out of stock, **** 3 times.

  9. Anonymous users2024-01-29

    1. Factors that affect product pricing Marketing is made up of four basic elements, namely product, **, distribution, and pricing. Businesses create value in the market through the first three elements, and reap benefits from the value created through pricing. In the marketing mix, ** is the only factor that generates revenue, and the other factors are manifested in cost.

    It's also the most flexible factor in the marketing mix, and unlike product features and commitment channels, it changes incredibly quickly. Therefore, the best strategy is one of the important factors of the company's marketing mix, which directly determines the size of the company's market share and profitability. With the increasing complexity of the marketing environment, it is becoming more and more difficult to formulate the best strategy, not only to consider the issue of cost compensation, but also to consider consumer acceptance and competition.

    1. Factors influencing product pricing There are many factors that affect product pricing, including internal factors and external factors; There are subjective factors as well as objective factors. To sum up, there can be four aspects: product cost, market demand, competitive factors and other factors. 1) Product cost Marxist theory tells people that the value of commodities is the basis of the first compositor.

    The value of a commodity is made up of C+V+M. C+V is the value transferred by materialized labor in the production process and the value created by workers for themselves. M is the value created by workers for society.

    Obviously, cost is a key factor when it comes to pricing a business. The company's product pricing takes the cost as the lowest boundary, and the product is only higher than the cost, so that the enterprise can compensate for the cost of production, so as to obtain a certain profit. But this does not exclude a period of time on individual products, ** below the cost.

    In practice, the product is formulated according to three parts: cost, profit and tax. Costs can be broken down into fixed costs and variable costs.

  10. Anonymous users2024-01-28

    1. Market factors.

    1. The size of the purchase batch.

    2. Distribution of consumers.

    3. The number of customers.

    4. Consumers' purchasing habits.

    Second, product factors.

    1. The unit price of the product.

    2. Fashionability.

    3. Volume and weight.

    4. Fragile and perishable.

    5. Technical.

    6. Product market life cycle.

    Third, the factors of the production enterprise itself.

    1. Financial capacity.

    2. Sales ability.

    3. The level of service that may be provided.

    4. Delivery limit.

    Fourth, ** policy factors.

    Fifth, the intermediary factor.

    Sixth, economic benefit factors.

    1. Sales expenses.

    2. Analysis.

  11. Anonymous users2024-01-27

    The factors that affect pricing are: capital turnover, supply and demand, brand image, competitors, and strategies.

    1. Influencing factors.

    1. The capital week needs the company's capital turnover to be fast, so it has to be set at the most attractive level for users. And the most attractive ** level, the profit is not necessarily the largest.

    2. Supply and demand: The market demand is strong, and the product can float upward.

    3. Brand image: When a company or brand focuses on the high-end market and provides the highest level of products or services, it may have nothing to do with the cost.

    4. Competitors: As the flow of information becomes more and more transparent, it is easy to make comparisons on the Internet, and competitors also affect the pricing of enterprises themselves to a large extent. ** Lowers or may even reduce brand image and sales.

    5. Strategy: Various forms of discounts, discounts, and preferential combinations will affect the final pricing of the product.

    2. Common pricing methods.

    In pricing strategies, there are three types of common pricing methods: cost-oriented pricing, demand-oriented pricing, and competition-oriented pricing.

    1. Cost-oriented pricing method: that is, based on your purchase cost, plus the profit you expect to get to determine the best of what you sell. The cost-based pricing method is divided into:

    Cost-plus pricing, target-income pricing, break-even pricing. This is one of the simplest and most widely used methods of pricing.

    2. Demand-oriented pricing method: that is, according to the affordability of buyers who want to buy your things. Demand-oriented pricing methods are divided into: understanding value pricing method, demand difference pricing method, and reverse pricing method.

    3. Competition-oriented pricing method: that is, refer to the pricing of the seller who sells the same kind of thing as you to determine your pricing. The competition-oriented pricing method is divided into: on-the-go pricing method, product differential pricing method, and bidding and bidding pricing method.

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