Naturally, every company wants its indonesian numbers products to be used by people as often as possible. Therefore, using different pricing policies, companies offer a wide range of products. These products are interchangeable or complementary in demand. Manufacturers have the right to set different prices within one product line.
Pricing of Substitute Goods
It is profitable for a company to develop a system for assessing the cost of a product where the maximum profit comes from all of its components. Of course, it is quite difficult to establish an exact cost, it is also complicated by the interrelationship of different goods from the standpoint of demand and costs.
4 pricing options
Let's look at four typical situations that arise most often:
Prices are set within the product range. Often, with such a company policy, the firm produces a whole line of products. Then the most competent option is to set step prices, from the minimum to the high. The price of a step on this line is determined by costs, the price of raw materials, and product properties. The goal of the manufacturer is to identify parameters that differ in goods and are identified by the buyer himself, on the basis of which a certain cost will be formed.
Prices are set for additional products. Very often, additional products offered by the company itself are added to the main product as a markup. This approach consists of forming a so-called starter kit, the cost of which already includes these additions.
Prices are set for mandatory accessories. Some products are manufactured together with mandatory accessories, without which the main product cannot work. Very often, companies do not raise the price of the basic product, setting a fairly low price, but sell additional ones at exorbitant prices.
Prices are set for the results of by-product production. There are industries where secondary products are formed in the process of creating a product. It is often quite expensive to dispose of them, so the costs of this process are included in the cost of the main assortment.
Substitutable goods on the market satisfy the same needs of buyers. Even if several models with similar characteristics and qualities are produced within the company, such products are also considered substitutes.
4 pricing options
Every product, and to a greater extent interchangeable ones, compete with each other to satisfy the needs of the customer. The rule is true: an increase in the price of one product increases the demand for another. If the same quality products have different parameters (for example, special sizes or colors), then the question of special cost arises. If the benefit of buyers does not change in any way from this specificity (appearance) of the product, then entrepreneurs often set a unified price. It does not vary in any way depending on the special parameters of the product, and vice versa.
The characteristics of interchangeable goods that differ in properties are somewhat different. Their cost is set taking into account the assessment of each product based on the demand elasticity graph.