Modern problems of science and education. Pricing factors in market conditions

FORMATION OF PRODUCT PRICE

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

Basic Pricing factors are mainly related to the costs of producing and selling goods. An increase in these costs, as a rule, leads to higher prices, while a decrease in costs leads to lower prices. Since the dynamics of prices for basic production resources can be predicted, the basic pricing factors are factors of the strategic plan.

The basic pricing factors include the natural, climatic and territorial conditions in which the enterprise operates, the transport component of 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 rather rapid and, often, unpredictable changes, then market pricing factors are classified 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 durable consumer goods (furniture, household appliances) behave similarly. Prices for machinery and equipment, the manufacturing cycle of which is quite long, react much more slowly to changes in market conditions.

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

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

Market factors give advantages to those enterprises and firms that can quickly respond to changes in the market situation. This requires careful production preparation, a flexible production system and highly qualified personnel.

As practice shows, the greatest success is achieved by those enterprises and firms that skillfully use their advantages associated with both basic and market pricing factors.

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 product.

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

Supply factors associated primarily with the costs of producing and selling 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, while others cause them to rise. The following factors contribute to the price decline:

Growth in production (imports) and saturation of the market with goods;

Reduced demand for goods;

Increased competition between sellers (manufacturers);

Reducing production costs;

Reducing the tax burden on sellers (manufacturers);

Expanding direct connections between buyers and producers of goods (reducing 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 causing price increases:

Reduction in production (import) and supply of goods on the market;

Increased demand for goods;

Reduced competition between sellers (manufacturers), leading to monopolization of the market;

Increase in production costs;

Increasing the tax burden on sellers (manufacturers);

Increasing the number of intermediaries on the way of movement of goods from manufacturers to final consumers; and:

Improving the quality of goods;

Inflation caused by an increase in the amount of money in circulation;

Excessive demand.

When pursuing its pricing policy, a 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 company (external factors), a smaller part depends on the actions of its management and personnel (internal factors).

Pricing factors

price cost product redistribution

In a market economy, price formation is influenced by factors called price-forming factors. Price-forming factors are understood as a set of various variable arguments (conditions) that influence the formation of the level, structure and dynamics of prices, determining their upward or downward trend. Conventionally, price-forming factors can be divided into internal and external.

Internal factors include those that the firm can influence. Let's consider the main factors included in the system of internal factors 5:

Activities related to cost management. For effective functioning at each specific enterprise, it is necessary to manage all elements of costs: material; labor; depreciation and others. The purpose of such management at a particular company is to create conditions for reducing (or stabilizing) costs. Thus, an increase in production volumes can help reduce overall costs, and a decrease can help increase them. An increase in labor productivity that outstrips the rate of growth in wages also leads to a reduction in costs by reducing the share of wages in the cost price. Improving the system for rationing material resources helps reduce costs.

Formation of the optimal nomenclature of the company. As a rule, enterprises produce several types of products that have different levels of profitability. It is profitable for an enterprise to produce products with high profitability. Therefore, it can change the assortment structure of production in favor of highly profitable products.

Improving marketing market research, which involves a more in-depth study of the competitive environment, advertising activities, improving the company's image, etc. 4.

Attracting financial resources and their effective use. The optimal ratio between own and borrowed financial resources can help reduce or stabilize prices. This is due to the possibilities of expanding production. Attracting borrowed funds (for example, a bank loan) requires not only their repayment, but also a certain fee in the form of interest. You do not have to pay for using your own financial resources. But in a market economy, a system of using borrowed funds has been developed.

Reasonable formation and use of the company's pricing policy. Depending on what pricing policy the company uses, prices are formed for specific groups of goods that can pursue various goals: conquering a market segment (low prices); creating demand among potential consumers for the company’s products (low prices); using a high company image (high prices); receiving excess profits (high prices), etc.

Improving the organizational mechanism of the enterprise. This includes improving work with suppliers and consumers, choosing a payment system for products and material resources, optimizing the organizational structure, etc. 6.

External pricing factors include factors that are beyond the control of the company and which the company is unable to influence. External factors can be roughly divided into two groups: external factors caused by national conditions and external factors associated with the international economy.

External factors determined by the national economy include the following factors: government price regulation, which consists of: establishing rigid prices for certain types of goods and services in various sectors of the economy; in the formation of state pricing policy; in the application of the system of maximum and minimum prices; in determining thresholds and boundaries for price changes; development and application of government tax, monetary and depreciation policies; use of a system of customs duties on imported and exported goods; establishing a minimum wage; implementation of antimonopoly policy; inflationary processes; the level of well-being of the people; tastes and preferences of consumers, etc. 2.

Due to the fact that a comprehensive study of the market presupposes the need to study market prices for goods, a classification of price-forming factors is necessary. At the same time, an equally important task is to determine the main pricing factors - COF, competition and CPI.

TsOF. The market price of a product is formed under the influence of many factors that determine the state of the corresponding market, as a concentrated expression of the commodity situation. In this case, the market price is directly (indirectly) influenced, since any market-forming factor directly or indirectly affects the demand (supply) of the product. Here, without exception, all market-shaping factors can simultaneously be considered factors in the formation of commodity prices - COF. Therefore, the main market-shaping factors are the following COF (Appendix B).

Competition. Today, the main factor in the effectiveness of organizations is to improve the quality of goods (works and services), and the consumer is interested in changes in prices and factors, which include quality.

Under the influence of scientific and technological progress, monopoly and state policies, natural factors, etc. long-term price trends reflecting changes in the value of goods and money. Due to changes in different phases of the cycle, the relationship between supply and demand determines medium-term cyclical price fluctuations. Short-term price fluctuations that arise under the influence of seasonal as well as random factors of various origins. Therefore, the influence of competition, which eliminates the contradictions between supply and demand, as well as the ratio that at any given moment influences the level of market prices, on prices includes the influence of macroeconomic factors.

Price competition. Competition, which lowers the price of goods offered, between sellers of homogeneous products who try to displace other sellers by selling goods at the lowest price, ensuring the largest sales for themselves. Competition that drives up the price of goods offered between buyers in the same industry. Competition, the result of which depends on the balance of power between competing parties, between buyers and sellers, where the latter want to sell at a higher price, and the former want to buy at a lower price.

Inter-industry competition, that is, the form of creating competing industries that produce substitute goods that cover the same needs of buyers, the development of which can cause lower and higher prices in the market. Therefore, differences in the form of price competition, that is, competition that is associated with the direct use of prices in order to conquer the market, as well as achieve better economic conditions of sale, can be observed depending on the nature of the product.

CPI. The CPI, which causes inflation in the market for consumer goods and services, is usually taken as the CPI for goods or the CPI. At the same time, the CPI is a relative indicator that expresses the change over time in the general level of prices for goods and services that are purchased by the population for the purpose of non-productive consumption. A different aggregate price index may be used, based on the objectives of the study. When a researcher is interested in changes in prices of individual food products compared to changes in food prices, then it is appropriate to use the overall food price index as an inflation index.

Consequently, for industrial and technical goods in organizations of individual industries, when studying price dynamics, they carry out: 1) revaluation of fixed assets; 2) revision of rental rates in order to perform economic calculations, as well as forecasting at the macro level, etc. Thus, it is advisable to use the PPI (a relative indicator used to study the dynamics of prices for industrial and technical goods) in order to adjust prices for inflation, it is advisable to use the PPI.

FORMATION OF PRODUCT PRICE

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

As practice shows, the greatest success is achieved by those enterprises and firms that skillfully use their advantages associated with both basic and market pricing factors.

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 product.

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

— growth in production (imports) and saturation of the market with goods;

- reduction in demand for goods;

— increased competition between sellers (manufacturers);

— reduction in production costs;

— reducing the tax burden on sellers (manufacturers);

— expansion of direct connections between buyers and producers of goods (reducing 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 causing price increases:

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

— increasing demand for goods;

— reduction of competition between sellers (manufacturers), leading to monopolization of the market;

— increase in production costs;

— increasing the tax burden on sellers (manufacturers);

— increasing the number of intermediaries on the way of movement of goods from producers to final consumers; and:

— improving the quality of goods;

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

- rush demand.

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The market pricing process consists of 6 stages:

1. Identification of external factors influencing prices

2. Setting pricing goals

3. Choosing a pricing method

4. Development of a pricing strategy

5. Market price adjustment

6. Pricing insurance

from unfavorable factors

1. Identification of external factors influencing prices

Consumers

State Þ Price Ü Competitors

Participants of distribution channels

Consumers: The market price of a product is set under the influence of supply and demand. The volume of demand for a product depends on the price of this product, the prices of complementary goods and substitute goods, on the level of wealth 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 supply price for this product, on the prices of competing goods and on goods produced jointly with this product, on the level of technology, taxes, fees for resources, and the number of sellers. The demand function on price has an inverse relationship, and the supply function on price has a directly proportional relationship. The sensitivity of supply and demand to changes in factors is measured by elasticity; the price elasticity coefficient shows by what percentage the sales volume will change when the price changes by 1%:

Coeff. price elasticity = ((Q 2 - Q 1) / Q avg) / ((P 2 - P 1) / P avg),

Where Q 1 , Q 2— sales volume before and after price changes; P1, P2— price.

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System of pricing factors

When embarking on the path of entrepreneurial activity, every businessman must clearly understand the influence of which factors determine the price. Price formation is carried out, as a rule, according to a single scheme (Fig. 8.1)

Rice. 8.1 Pricing stages

In the pricing process, socio-economic conditions are comprehensively analyzed, pricing strategy and tactics are developed, and a pricing and price insurance method acceptable to the company is determined.

From the dual nature of prices, it follows that the main pricing factors are cost (costs) and use value (ability to satisfy needs) of a particular product. The global trend in pricing is determined by two laws: the reduction of time costs and the growth of use value per unit of expenditure 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 developed pricing strategies, but also in the overall strategic objectives of the company.

The most significant factors influencing the formation of market prices are: costs, demand, competition, type and properties of goods, type of consumer (buyer), features of regulation of distribution channels, government 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. There are fixed, total and opportunity costs. The most important goal of entrepreneurs and company managers is their activities in order to optimize profits.

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

The need for a purchase, specific conditions, the consumer’s attitude towards the brand, and other factors influence demand within the boundaries of, as a rule, 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 goods with a given price level, select the desired product, taking into account secondary factors.

An increase in demand when prices for a specific product rise can be observed in the following cases:

· irreplaceability of the product;

· prestige of the product;

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

· inflation expectations in order to reduce future costs for relatively expensive goods;

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

When studying the reaction 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 – changes in demand and price over time or during the transition from one group of consumers to another;

C, C – average, or basic, value of demand and price.

A change in the price of a product with high price elasticity significantly changes the demand for it; therefore, errors in pricing policy can be disastrous for the company. The room for price maneuver for inelastic goods is 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 emergence of substitutes. This phenomenon is called cross elasticity– elasticity of the demand structure, displacement of one product (A) by another (B) under the influence of the price factor:

a) if E p > 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 the most important factor in pricing in modern conditions. The higher the degree of monopolization in the market, the more opportunities individual firms have to control prices. The pricing policy of individual companies depends on a number of competitive factors:

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

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

COST OF VEHICLE VALUATION

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

DOCUMENTS REQUIRED FOR CAR EVALUATION

Vehicle registration certificate

Technical device passport

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

Depending on the specific situation, specialists from the Appraiser appraisal company will advise you free of charge about the possibility of appraising a car if certain documents are missing.

VEHICLE ASSESSMENT PROCESS

1. Agree with our managers on a convenient time for inspecting the vehicle being assessed and choosing a convenient payment method.

2. Inspection of the vehicle being assessed.

3. Calculation of market value and preparation of an appraisal report.

4. Delivery of the report.

A car assessment by specialists from the Appraiser appraisal company is an opportunity to arrange a car inspection at any time convenient for you, including on weekends.

PRICING FACTORS WHEN EVALUATING A CAR

Many factors influence the market value of a car when appraised. 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, experts pay great attention to wear and tear indicators of the vehicle. This takes into account not only physical wear, but also functional wear. In some cases, it is this type of wear and tear on the car that directly affects its value, significantly reducing it.

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

OBJECTIVES OF VEHICLE EVALUATION

There are many different circumstances in which you may need a car valuation. So, the most common and frequently encountered ones are:

Drawing up a donation agreement for a car.
Drawing up a contract when making a transaction for the sale or purchase of an already used vehicle. The vehicle valuation report will help determine the most appropriate and reasonable price for the object. If you need to confirm the market value of a vehicle, you can present an appraisal report prepared by experienced specialists from the Appraiser appraisal company.
Property disputes in court, including litigation regarding the property of former spouses. In this case, it is necessary to determine the value of all jointly acquired property, often including a car.
Receiving a vehicle by inheritance. In this case, an appraisal of the car is necessary to determine the fee for notary services. 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 confirming the right to engage in such activities. In addition, the car must be appraised on the date of death of the previous owner of the property.
Obtaining a loan for a large amount from a banking organization, using a personal car as collateral. However, the owner should take into account that with such an assessment purpose, the specialist will determine the liquidation value of the car, that is, the price for which the bank will be able to sell your property in a short period of time in the event of non-payment of the loan taken out.
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 purpose of collateral in a bank.
Car rental. An accurately determined value of the vehicle will help the owner calculate the most favorable rental rate for him, as well as monetary compensation in the event that the renter damages the property.

Businesses and organizations may also be faced with the need to estimate the value of a car. For example, an appraiser’s conclusion will help legal entities:

recalculate the amount of the organization's fixed assets.
optimize the tax base.
contribute the vehicle as a property contribution to the authorized capital of the enterprise.
redistribute shares in the business between its organizers.
conclude a car insurance agreement with the insurance company, determine the amount of payment upon the occurrence 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’s company).
settle property disputes in court or implement court decisions.
obtain a bank loan secured by the company's property

Appraisal company specialistsThe appraiser can evaluate the carfor any purpose.

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

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 government price regulation. Direct regulation: “freezing” prices; price control of monopolies; establishing boundaries and ranges for price measurement; indirect price regulation: subsidies, lending, tax policy, depreciation policy.

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

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

The 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 creating monetary funds at all levels of management. Factors that determine net income and its share in the price of a product: reduction in production costs, increase in sales volume, change in price level.

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

73.Price, pricing factors.

The solution to this problem in the Russian economy *.

Dependence of federal budget expenditures on the level and dynamics of prices.

Formation of funds of enterprises and the price system. Methods of profit distribution 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 monetary income and expenditure of the state and the population, smoothing out the negative processes of cash migration.

Prices and credit. Price dynamics and its impact on resources and credit boundaries.

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

Interest on a loan is a specific price for using borrowed funds.

Methods for calculating interest rates. Elements included in the interest rate, its dynamics. The main factors influencing the interest rate. The ratio of the discount rate of the Bank of Russia and commercial banks. Influence on the loan fee of the inflation factor *.

The relationship between the interest rate and the ratio of supply and demand for credit resources. Features of this dependence in Russia *.

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

Topic 4. Production costs and profits.
Their role in pricing

Determination of costs. Formation of costs for the manufacturer. Interdependence between the price level, cost and profit.

Types of cost classification. Cost of production *.

The effect of the law of diminishing returns in the formation of costs. Profit in market conditions. The relationship between profit and entrepreneurial risk.

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Price is the most complex integral of modern economics. Only 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 reform is price reform” has become popular.

The complexity of price and pricing lies in the fact that price is a market category. And “conjuncture” comes from the Latin word “to bind, to connect.” This is a coupling, an interrelation of economic, political, psychological, social factors. The influence of these factors on market development is different and 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 consumer behavior. The color of the price, like a litmus test, depends on the market situation and the health of the economy. This is the phenomenon of price.

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 comprehensive the assessment of specific issues, the more successful they are.

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

Main list pricing problems, 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 a profit sufficient for the normal functioning of the manufacturer;
taking into account the interchangeability of products when setting prices;
solving social issues;
implementation of environmental policy;
resolving foreign policy issues.

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

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

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

In a developed market, economic balance is achieved not so much with the help of a spontaneous regulator, but rather through the implementation of 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 - these 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 lever in resolving foreign policy issues is the supply at preferential prices or the purchase at inflated prices of products for countries in relation to which a favored policy is being pursued.

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

To stimulate the production of modern (from a national standpoint) means of production, the state is developing and implementing a system of incentive prices (removing upper price restrictions, establishing 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 higher producer prices and relatively lower consumer prices is often subsidized by the government.

An example of the use of price levers within the framework of environmental policy (the fourth task) is the solution, with the help of prices, of the problem of improving the processing of raw materials, processing and disposal of waste. In this case, the most important issues are the assessment of secondary resources, waste and their processed products.

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 type of price. The most widespread point of view in the economic literature is that price has four functions: accounting, redistribution, incentive, and the function of balancing supply and demand.

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

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

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

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

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

Regulatory factors become more obvious the more active government intervention in the economy is. Price restrictions from the state can be advisory or strictly administrative in nature.

As the market develops and becomes increasingly 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 relation to which only market factors are applied.

They are assessed 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 relationship of prices within a single system.

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

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

There are different types of prices and price groupings according to the service sector of the national economy, as well as according to the degree of severity of their state regulation.

For example, the grouping of prices by 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 service being purchased based on 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 peculiarities of evaluating 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.

When grouping prices according to the degree of severity of government regulation, a distinction is made between market (free) and regulated prices.

Market (free) prices are prices free from direct price intervention by the state. However, they are not free from the action of other levers that do not directly affect the level and structure of prices. Thus, price development depends on income tax. Progressive income tax rates make it unprofitable for the seller to raise prices, but these prices are correctly called free or market prices, since there are no direct restrictions 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 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 subject of increased government control (leading types of raw materials, fuel, long-distance transport, communications, products of increased social importance, etc.).

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

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

Main list pricing problems, 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 a profit sufficient for the normal functioning of the manufacturer;
taking into account the interchangeability of products when setting prices;
solving social issues;
implementation of environmental policy;
resolving foreign policy issues.

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

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

Basic (non-market) factors predetermine relatively high stability in the development of price indicators. The effect of this group of factors varies in different types of markets. Thus, in the conditions of the commodity market, non-market factors are considered intra-production, costly, and cost-related, since the movement of prices under the influence of only these factors is unidirectional with the movement of costs.

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

Regulatory factors become more obvious the more active government intervention in the economy is. Price restrictions from the state can be advisory or strictly administrative in nature.

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

There are different types of prices and price groupings according to the service sector of the national economy, as well as according to the degree of severity of their state regulation.

When grouping prices according to the degree of severity of government regulation, a distinction is made between market (free) and regulated prices.

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Function	Content
1. Account	— measures the enterprise’s costs for the production and circulation of goods, the volume of products produced and sold, the efficiency of goods production (profit, profitability, labor productivity, capital productivity); — acts as a tool for analysis and planning of all indicators in monetary terms; — allows you to compare goods that differ in consumer characteristics;
2. Balancing supply and demand	- in an unregulated market, it is a spontaneous regulator of social production, with capital flowing from one industry to another, the production of surplus products is curtailed and resources are freed up for the production of scarce ones; — in a regulated economy, in addition to price, other levers are used: government financing, lending, tax policy, etc.;
3.Redistribution	- redistribution of the created social product between various sectors of the economy, regions, population groups, etc., for example, by introducing high indirect taxes on prestigious goods, the state uses the income from them to maintain relatively low prices for essential goods or creates funds for social protection 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 indirect tax rates.

Sign	Types of prices
1.Market coverage	1. World prices - reflect the world market conditions (prices of regular large transactions in hard currency) are determined by the price level of exporting countries, leading manufacturers, exchanges, and auctions. 2. Internal prices reflect the national market conditions. 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(intra-business) prices are used for settlements between divisions of the same economic structure
2.Nature of serviced turnover	1. Wholesale(selling) 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 end consumers in cash. 3. Procurement prices - prices at which agricultural producers sell their products in large volumes to government and non-government bodies. 4. Government procurement prices- prices at which government authorities purchase various types of products. 5. Prices for construction products: — estimated cost— the maximum cost for the construction of the facility + planned savings; — list price price - the average estimated cost of a unit of final product (1m2 of living space, painting work, 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 government regulation	1. Available— prices free from direct price intervention by the state. 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, fuel, long-distance transport, communications, products of increased social importance)
4. Inclusion of transport costs in the price	Types of prices are formed depending on how the costs of loading, transportation, unloading, insurance, and customs clearance are distributed between the seller and the buyer. The more costs 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 special deliveries. products, the quality of which depends on the quality of transportation, the quality of installation at the consumer; b) when delivering 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, to differentiate prices, the term “free” is used, showing to what point the supplier reimburses transport costs: - supplier's ex warehouse— delivery costs are borne by the buyer; — free departure station— the seller pays the costs of delivering the goods to the departure station; — free carriage departure station— the seller also pays for loading into the car; — free carriage destination station— the seller includes the railway tariff in the price; — free destination station— the price also includes unloading costs — buyer's ex-warehouse— all delivery costs are included in the price. In foreign trade operations, the procedure for distributing expenses is set out in 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 are the most objective prices, because exchange goods are mass standard, transactions are regular, the market is competitive. 3.Auction prices are used for forestry, agricultural, fishing products, in the trade of tea, furs, furs, and precious metals. 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 one or several sellers, demand exceeds supply, so the price trend is upward. 4. Bidding prices. Bidding is a buyer's market; in response to his application, offers are received from potential sellers, the price trend is downward. Bidding is held for technically complex and capital-intensive products and for the construction of structures.
6.Time factor	1. Constant price, its validity period is not determined in advance. 2. Seasonal price, validity period is determined by the time period. 3. Stepped price involves a consistent reduction in prices at predetermined moments on a certain scale.
7. Method of obtaining information about the price level	1. Published prices reported in special and proprietary sources of information, are the starting point from which price negotiations begin when concluding transactions. 2. Estimated prices are justified by the supplier for each specific order, taking into account its technical and commercial conditions.

Modern problems of science and education. Pricing factors in market conditions

Pricing factors

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System of pricing factors

1.4. Pricing factors

73.Price, pricing factors.