Description
During the period of depression prices of manufactured articles, share and stock fall more steeply, while during boom period, prices of all commodities rise very significantly.
Cyclical pricing
Cycling pricing refers to the pricing by a firm depending on an assessment of general economic environment i.e. boom or depression. During the period of depression prices of manufactured articles, share and stock fall more steeply, while during boom period, prices of all commodities rise very significantly. In formulating a policy of cyclical of policies the following factors may be considered : 1. Price rigidity 2. Price fluctuation that conform to cost changes at a. Current full cost b. Standard full cost c. Incremental cost 3. Price fluctuation conform to price of substitutes. 4. Price fluctuation that conforms to changes in general price level. 5. Price fluctuation that stabilize market share. 6. Price fluctuation that conform to changes in industry demand determinates.
Peak-load pricing
There are certain products which can not be stored and demand for them varies over time. Consumption of these products is more than it is called peak- load time and vice-versa.. For example: electricity consumption is more during the day time than at night. Same as we consider peak
period and off
peak period.
Peak load pricing suggests that prices should be set at a higher level of peak periods of demand while lower prices may be charge during off break periods.
Price strategies for new products.
It is necessary to understand what constitutes new products .The firm may come out with a new product which is similar to the products already produce in the market by others .the product may be different in quality, design , colour and packaging etc. Before fixing the price of new product , it is necessary for the decision maker to find out two things; 1. Is other firms also changes in their products at the same time . 2. Is other firms changes their prices at the same time
Before fixing the price the following concepts should be kept in mind:
1. Whether the new product is acceptable by the consumers 2. At what price this is acceptable 3. If two or three prices are fixed what would be the volume of sales at each price. 4. What would be the reaction of manufacturers to the substitutes .
Actual pricing
This principle is known as value of service principle. Each category of consumers is charged a price that it is able to pay according to its demand for service. The consumers are divided on the basis of elasticity of demand .if the demand inelastic , higher rates are charged. Lower prices are charge where the demand is elastic .
Administrated prices
Administrated prices are those prices which are statutorily fixed by the govt. , taking into account the cost and the stipulated profit per unit. The purpose of introducing administrated price is to control prices of essential goods and inputs as well as to provide them at economic prices to weaker situations of consumers and producers . For Ex. Steel , coal , aluminum , petrol , fertilizers etc. are generally subject to administrated prices.
Types of administrated prices:
There are three types of administrated prices: 1. Minimum support prices:Under this scheme , the govt. assures that prices will not be allowed to fall below the minimum support price and in case the producers do not get buyer for his products at support price , the govt. is prepared to procure the supply .
Dual Price
Dual price is a system in which two types of prices are prevailing for the product under the system one price is fixed and controlled by the govt. and the other price is to be determined by market forces .
Retention prices
Another variety of administrated prices involves prescribing minimum ceiling or the retention prices for certain essential products like the steel , coal , drugs etc. Under the scheme , the minimum retention price for various important varieties is fixed by the state which are subject to revision to time to time on the basis of recommendation of Bureau of
Industrial Costs and Prices in India.
doc_209622835.ppt
During the period of depression prices of manufactured articles, share and stock fall more steeply, while during boom period, prices of all commodities rise very significantly.
Cyclical pricing
Cycling pricing refers to the pricing by a firm depending on an assessment of general economic environment i.e. boom or depression. During the period of depression prices of manufactured articles, share and stock fall more steeply, while during boom period, prices of all commodities rise very significantly. In formulating a policy of cyclical of policies the following factors may be considered : 1. Price rigidity 2. Price fluctuation that conform to cost changes at a. Current full cost b. Standard full cost c. Incremental cost 3. Price fluctuation conform to price of substitutes. 4. Price fluctuation that conforms to changes in general price level. 5. Price fluctuation that stabilize market share. 6. Price fluctuation that conform to changes in industry demand determinates.
Peak-load pricing
There are certain products which can not be stored and demand for them varies over time. Consumption of these products is more than it is called peak- load time and vice-versa.. For example: electricity consumption is more during the day time than at night. Same as we consider peak
period and off
peak period.
Peak load pricing suggests that prices should be set at a higher level of peak periods of demand while lower prices may be charge during off break periods.
Price strategies for new products.
It is necessary to understand what constitutes new products .The firm may come out with a new product which is similar to the products already produce in the market by others .the product may be different in quality, design , colour and packaging etc. Before fixing the price of new product , it is necessary for the decision maker to find out two things; 1. Is other firms also changes in their products at the same time . 2. Is other firms changes their prices at the same time
Before fixing the price the following concepts should be kept in mind:
1. Whether the new product is acceptable by the consumers 2. At what price this is acceptable 3. If two or three prices are fixed what would be the volume of sales at each price. 4. What would be the reaction of manufacturers to the substitutes .
Actual pricing
This principle is known as value of service principle. Each category of consumers is charged a price that it is able to pay according to its demand for service. The consumers are divided on the basis of elasticity of demand .if the demand inelastic , higher rates are charged. Lower prices are charge where the demand is elastic .
Administrated prices
Administrated prices are those prices which are statutorily fixed by the govt. , taking into account the cost and the stipulated profit per unit. The purpose of introducing administrated price is to control prices of essential goods and inputs as well as to provide them at economic prices to weaker situations of consumers and producers . For Ex. Steel , coal , aluminum , petrol , fertilizers etc. are generally subject to administrated prices.
Types of administrated prices:
There are three types of administrated prices: 1. Minimum support prices:Under this scheme , the govt. assures that prices will not be allowed to fall below the minimum support price and in case the producers do not get buyer for his products at support price , the govt. is prepared to procure the supply .
Dual Price
Dual price is a system in which two types of prices are prevailing for the product under the system one price is fixed and controlled by the govt. and the other price is to be determined by market forces .
Retention prices
Another variety of administrated prices involves prescribing minimum ceiling or the retention prices for certain essential products like the steel , coal , drugs etc. Under the scheme , the minimum retention price for various important varieties is fixed by the state which are subject to revision to time to time on the basis of recommendation of Bureau of
Industrial Costs and Prices in India.
doc_209622835.ppt