Types of prices in marketing
Price - the cost for a product or service expressedin monetary terms. It is usually determined for the unit of the goods, for the volume of products, for the service. The price indirectly expresses the resources expended on the production of goods (services). These include the cost of used materials, raw materials, time and labor. The price also includes the costs of logistics, sales, advertising, marketing. Consider the very concept and types of prices used in marketing.
Price (services, goods) - the value that has developed as a result of interaction between the seller and the buyer in the markets of similar goods (services). What kinds of prices exist in marketing?
The contract price is the cost thatis established by agreement between the parties. That is, the price in this case is not spontaneous, it is the result of a one-time agreement between the seller and the buyer. This price depends on the specific conditions prevailing for a given period of time.
The group "types of prices" includes the purchase price - the cost of products for distributors, dealers. It is fixed in the contract of sale.
Wholesale price - the cost of goods for the buyer,which at the same time the goods are purchased by the party and sold in the original packaging. One product can be resold several times, passing through a number of wholesalers. In this case, each of them will overstate the wholesale price, that is, the purchase price will be added to the trading margin.
Retail price - the cost at which the sellersells the goods (service) to the final buyer. He uses this product for himself, work or family. The retail price consists of the previous practice of interaction between the seller and the buyer. This price is fixed on the price tag or in the contract of sale. Purchasing a product or service, the buyer agrees with the retail price. It is formed as follows: the wholesale price + trade mark-up of the organization (profit, advertising costs, employees' salaries, storage of goods, etc.). Price list - a list of names of goods (services) and prices for them, which can be found both as a wholesale buyer and as a retail buyer.
Types of prices are classified according to the following characteristics:
1. By time of action:
prices for one time;
the price for the period of any share;
2. For a certain category of buyers:
- open prices;
- special prices:
for a certain market segment;
for geographical markets;
for industrial markets;
special cost for regular customers.
3. Depending on the industry:
- Wholesale prices;
- purchase price;
- retail prices;
- estimates for the construction of the facility: a list of costs for materials, salaries for employees, etc.
- payment for transportation of passengers and cargo - is collected by transport organizations from the population and shippers;
- Prices for various services rendered to the population - retail price for housing and communal services, consumer services, communication, etc.
4. Depending on education, the following types of prices are distinguished:
- fixed prices - are set most often on monopoly goods. That is, the state regulates the cost of alcoholic beverages, tobacco products, bread, etc .;
- free prices - prices formed under the influence of supply and demand;
- Prestige prices are formed for wealthy people. The high price guarantees and the excellent quality of the goods;
- transfer prices are established between two enterprises. The basis is the market price or costs.
- export prices - the price paid when exporting a certain product border. These prices include:
loading and unloading costs;
transport costs and others.
We examined all possible types of prices in marketing.