Pricing in trade

Among all the instruments of the economy, it is price that is an extremely attractive means of allowing the producer to influence the buyer. Price not only affects the number of sales, but also can reduce or increase the profits of the enterprise.

Pricing mechanism

In trade, pricing is one of the primary tasks in the activities of employees, whose competence includes the sphere of strategic development and ensuring the interests of the enterprise. This process is based not only on competitors' prices and distribution costs, but also includes the structure and composition of prices, profit margins and other concepts.

To establish a certain price for a product, an enterprise must take into account the variety of factors affecting it. The mechanism of pricing is based on various laws, provides a variety of methods and principles of pricing, including control, validity, focus and continuity. All methods and principles underlying the pricing mechanism are determined by the pricing policy that is inherent in a particular enterprise. It is expressed in various techniques for creating price indicators and price management. These techniques are based on knowledge of human psychology, and they include various bonuses, gifts, discounts, promotions, savings systems and more.