Assorted Methods of Making of Pricing Decisions in an Enterprise

• Authors: Henryk Wnorowski
• Languages of publication: EN

Abstracts

EN

Decisions concerning price development are best visible in view of their direct impact on the market activities of the company and the general level of profitability. In every activity, the success is measured by an excess of sales revenue over the costs of used resources. In an ideal case, a determined price provides the highest margin resulting from an analysis of the sales volume, takes into consideration the customer's evaluation of the product/service, and allows to react to competitive threats and to fend off the competition's attacks. There is no single universal way to develop prices for various enterprise types, regardless of the conditions of demand, the specific character of the sector they operate in, or the competitive situation, even if we assume that the enterprise has only one goal of activity. That's why, Author recommends three price determination methods. The ways of price determination presented in this article are just the first step on the way to reach the optimal prices. The prices determined in such way, as well as product or service prices already functioning in the market, are subject to modification depending on the assumed goals, taking into consideration the character of demand for a given commodity and the behaviour of the competition.

Keywords

EN

price; pricing decision; pricing policy; marginal revenue; marginal cost; price elasticity of demand

• Publisher: Sciendo
• Journal: Studies in Logic, Grammar and Rhetoric
• Year: 2014
• Volume: 37
• Issue: 1
• Pages: 253-261

Dates

online

2014-08-08

Contributors

author

Henryk Wnorowski

• Faculty of Economics and Management, University of Bialystok, Poland

References

• Firmy pod presją cenową klientów i konkurentów, “Rzeczpospolita” 5.02.2013.
• Froeb, L. M., McCann B.T. (2012). Ekonomia menedżerska. Warszawa: PWE.
• Hanna, N., Dodge, M.R. (1997). Kształtowanie cen. Strategie i procedury. Warszawa: PWE.
• Lunden, B. (2009). Kształtowanie cen. Praktyczny poradnik. Gdańsk: Wydawnictwo BL Info Polska.
• Mellor, R.B., Coulton G., Chick, A., Bifulco, A., Mellor, N., Fisher A. (2011). Przedsiębiorczość. Warszawa: PWE.
• Sobczyk, G. (2010). Polityka cen. In: G. Sobczyk (ed.). Zarządzanie sprzedażą, w przedsiębiorstwie handlowym i usługowym. Warszawa: PWE.
• Zinoecker, R., Gorzeń W., Kraus M. (2009). Wykorzystaj trudne czasy do optymalizacji cen. Harvard Business Review Polska. July–August.

Identifiers

DOI

10.2478/slgr-2014-0028