Internal factors affecting pricing. Pricing Factors, Pricing Process and Principles

Factors Affecting Pricing

Price is one of the means marketing complex used by a company to achieve its marketing goals. Formation of a consistent and effective marketing program requires coordination pricing policy product design, distribution channels and promotion methods. Changes in the parameters of any element of the marketing mix, as a rule, require a revision of the company's pricing policy. Thus, manufacturers who expect active support from their resellers in promoting their goods should provide for wider limits on trade margins. High quality positioning requires a higher price to cover high costs.

Professor of the Financial Academy under the Government of the Russian Federation E.I. Punin notes: "For independent commodity producers operating in the market, regardless of the form of ownership, the question of prices is a matter of life and death."

Making marketing decisions in the field of setting prices for goods is a rather difficult task for an enterprise, which is due to the special role of price as a means of making a profit, as well as its specific functions in the marketing mix.

Pricing policy is closely related to the commodity, distribution and communication policy of the enterprise and is the final stage in the development of the marketing mix.

“Only marketing can set a price that is high enough for the producer and low enough for the consumer,” says the second precept of marketing.

Price- the amount of money requested for a product or service, or the amount of value that a consumer gives in exchange for the right to possess or use a product or service.

Price is the only element of the marketing mix that generates revenue. In addition, the price is one of the most flexible, easily changeable elements of it. At the same time, pricing and price competition is the No. 1 marketing problem.

On the corporate level price is the main factor of long-term profitability, predetermining the methods of conducting price or non-price competition:

- price competition leads to the establishment of prices below the prevailing market level and is associated with the achievement of advantages in minimizing costs;

- non-price competition allows the establishment of prices at the level of prevailing market prices and even higher than them, and is focused on the policy of differentiation.

The essence of pricing policy in marketing- the establishment of such prices for the goods of the enterprise and such a variation by them depending on the position in the market in order to seize a certain market share, get the planned amount of profit, etc.

The objectives of the pricing policy of the enterprisecan be:

long-term or short-term profit maximization;

the economic growth;

market stabilization;

reducing consumer sensitivity to prices;

maintaining leadership in prices;

preventing the threat of potential competition;

maintaining trade loyalty;

improving the image of the enterprise and its products;

increasing the interest of the buyer;

strengthening the market position of the assortment;

capture a dominant position in the market.

For successful work in the market, it is very important to correctly consider the factors that affect the price level.

Marketers of foreign firms usually arrange them in ranked order.

1. Production costs.

2. Prices of competitors exporting to a given country.

3. Prices of local competing firms.

5. Transport costs.

6. Surcharges and discounts in favor of the intermediary.

7. Import duties and other charges.

Determining the price of a product is an art based on knowledge and consideration of numerous internal and external factors (Table 1.1).

Factors Affecting Pricing in Marketing

The value of production costs defines minimum price, which a company can charge for its product, and refers to internal factors, affecting pricing. The company seeks to set a price that would cover not only the costs of production, distribution and marketing of goods, but also would provide a proper rate of return for the effort and risk involved. A company's costs can be an important element in a pricing strategy. Companies that achieve low costs can set more low prices, which leads to a significant increase in sales and profits, i.e. and costs set a price floor . Market and demand are external factors influencing pricing, set their upper limit.

The degree of freedom of price formation varies depending on the type of market. Economists have identified 4 types of market, each of which has its own requirements for pricing.

Pure competition takes place in a market of homogeneous goods with a large number of buyers and sellers, none of which has much influence on the formation of the market price. Sellers in such a market do not spend much time developing marketing strategy

Monopolistic competition takes place in a market with a large number of buyers and sellers and different prices for one type of product. Sellers strive to individualize offers for different customer segments and, in addition to price, use trade marks, advertising and personal selling.

Oligopolistic competition has a place on the market with a small amount sellers, each highly sensitive to the pricing and marketing strategies of the other. Products can be homogeneous (steel, aluminum) or heterogeneous (cars or computers). There are few sellers in the market because it is not easy for new sellers to enter such a market. Each seller constantly monitors changes in the strategy and actions of a competitor

Pure monopoly takes place in a one-seller market. The types of monopolies are state monopoly, private regulated monopoly and private unregulated monopoly.

abstract

Factors influencing the process of pricing in world markets

Performed:

When analyzing the processes associated with pricing in world commodity markets, it is necessary to carefully study all the factors influencing price formation, such as general order, and purely applied ones. It depends on prices which costs of producers will be reimbursed after the sale of the goods, which are not, what is the level of income, profits and where they will be, and whether resources will be directed in the future, whether there will be incentives for further expansion of foreign economic activity (FEA).

In conditions market economy pricing in foreign trade, as well as in domestic market, is carried out under the influence of a specific market situation. In principle, the very concept of price is similar both for the characteristics of the domestic market and for the characteristics of the external one.

The price, including in international trade, is the amount of money that the seller intends to receive by offering a product or service, and which the buyer is ready to pay for this product or service. .

The coincidence of these two requirements depends on many conditions, called "pricing factors". By nature, level and scope, they can be divided into five groups listed below.

General economic , those. operating regardless of the type of product and the specific conditions of its production and sale. These include:

Business cycle;

The state of aggregate supply and demand;

Inflation.

Specifically economic , those. determined by the characteristics of this product, the conditions of its production and sale. These include:

Costs;

Profit;

Taxes and fees;

Supply and demand for this product or service, taking into account fungibility;

Consumer properties: quality, reliability, appearance, prestige.

Specific , those. applicable only to certain types of goods and services:

seasonality;

Operating costs;

Completeness;

Warranties and conditions of service.

special, those. associated with the operation of special mechanisms and economic instruments:

State regulation;

Exchange rate.

Non-economic , political, military.

As noted above, prices are determined by the conditions of competition, the state and ratio of supply and demand. However, in the international market, the pricing process has its own peculiarities. With this in mind, the effect of the above groups of pricing factors should also be considered.

Take, for example, supply and demand. It is known that the ratio of supply and demand in the conditions of the world market is felt by the subjects foreign trade much sharper than the suppliers of products in the domestic market. A participant in international trade faces a greater number of competitors in the market than in the domestic market. He must see the world market before him, constantly compare his production costs not only with domestic market prices, but also with world ones. Manufacturer-seller of goods on foreign market is in constant "price stress" mode. Significantly more in the international market and buyers.

Secondly, within the world market, factors of production are less mobile. No one will dispute the fact that the freedom of movement of goods, capital, services and work force significantly lower than within a single state. Their movement is constrained by national borders, relations in the monetary sphere, which counteracts the alignment of costs and profits. Naturally, all this cannot but affect the formation of world prices.

Under the world prices are understood the prices of large export-import transactions concluded in the world commodity markets, in the main centers of world trade.

The concept of "world commodity market» means a set of stable, recurring transactions for the sale and purchase of these goods and services that have organizational international forms(exchanges, auctions, etc.), or expressed in systematic export-import transactions of large firms-suppliers and buyers.

And in world trade, the factors under the influence of which market prices are formed, first of all, of course, include the state of supply and demand.

Practically, the price of the offered goods is affected by:

The solvent demand of the buyer of this product, i.e. simply put, the availability of money;

The volume of demand is the quantity of goods that the buyer is able to purchase;

The usefulness of the product and its consumer properties.

On the supply side, the constituent pricing factors are:

The quantity of goods offered by the seller on the market;

Costs of production and circulation in the sale of goods on the market;

Prices for resources or means of production used in the production of the relevant good.

common factor is the substitution of the goods offered for sale by another that satisfies the buyer. The level of world prices is affected by the payment currency, payment terms and some other, both economic and non-economic factors.

In the world market, cases of “distortion in the balance of supply and demand” are possible. In the event of a huge demand for a product, a situation may arise in which a product produced in the worst conditions at a national price will be thrown onto the market, which, in essence, will determine the world price for some time and which will certainly be very high. Conversely, often the supply greatly exceeds the demand. Then the bulk of sales falls on those subjects of international trade, the production conditions in which are the best, and prices are lower. (In this context, it is useful to note such a nuance: even if largest manufacturer goods in any country is largest supplier this product on national market, this does not mean that it will take a leading position in the world market.

Often in the international market most goods are sold by countries that are not, from an economic point of view, large and powerful powers.).

When working with market prices, including foreign trade prices, one should take into account the differences in them, taking into account the positions of individual parties and the market situation.

First, there are the concepts of "seller's price", i.e. offered by the seller, and therefore relatively higher, and "buyer's prices", i.e. accepted and paid by the buyer, and therefore relatively lower.

Secondly, depending on the market situation, the "seller's market", in which, due to the predominance of demand, commercial indicators and prices are dictated by the seller, and the "buyer's market", in which, due to the predominance of supply, the buyer dominates and the situation in terms of prices is the opposite. But this market situation is constantly changing, which is reflected in prices. And this means that it should be the subject of constant observation and study. Otherwise, very serious errors are possible in determining prices.

In the last two or three decades, an important role in the pricing of goods, especially in world trade, has been occupied by related services provided by the manufacturer and supplier of any product to the importer or end user. These are the generally accepted terms of delivery: Maintenance, warranty repair, other specific types of services related to the promotion, sale and use of goods.

This aspect is especially important in modern conditions, during the development high technology, complication of machines and equipment. There are known examples when the cost of services in the export of equipment and machinery accounted for 60 percent of the supply price.

The development of science and technology, influencing the improvement quality characteristics goods, on the other hand, affects world prices. The introduction of new technologies increases labor productivity, production efficiency, and reduces labor costs. Under the conditions of scientific and technological revolution, in absolute terms, the price is growing for almost all groups of goods. However, taking into account the so-called. useful effect (for example, increases the speed, reliability, etc.) the relative cost of the product, and hence its price for the consumer is reduced.

When analyzing prices, one should also take into account the movement of the economic cycle, which has a certain specificity in the field of international economic relations. So, in the stage of depression, prices, as a rule, do not rise. Conversely, in the upswing stage, due to the excess of demand over supply, prices increase. (Although both apply to international trade slowly, depending on the scope and depth of these phenomena, and even more so in the phase of crisis and recovery).

It should be noted that depending on the type of goods and commodity groups price dynamics are different. Thus, when the market conditions change, prices change most sharply and rapidly for almost all types of raw materials, the reaction of producers and suppliers of semi-finished products is slower, and the “price reaction” to the products of the machine-building complex is even weaker.

In a market economy, the process of pricing in trade between foreign economic entities different countries is carried out in a competitive environment, a dynamic balance between supply and demand, as well as comparative freedom of behavior in the market of the exporter and importer. However, these postulates require amendments depending on the type of market. The main criterion for classifying types of markets, including world markets, is the nature and degree of freedom of competition. Economists distinguish four types of markets:

Market of perfect (pure) competition;

Pure monopoly market;

Market of monopolistic competition;

For an effective business organization, it is necessary to have a clear understanding of what price is, pricing factors, what are the principles for pricing goods and services. Let's talk about how and what prices are made up of, what functions they perform and how to correctly determine the adequate cost of products.

The concept of price

base element economic system is the price. In this concept intertwined various problems and aspects that reflect the state of the economy and society. In the very general view the price can be defined as the amount of monetary units for which the seller is willing to transfer the goods to the buyer.

In a market economy, the same goods can cost differently, and the price is an important regulator of the relationship between market entities, a tool competition. Its value is influenced by many pricing factors, and it consists of several components. The price is volatile and subject to permanent changes. There are several types of prices: retail, wholesale, purchasing, contractual and others, but all of them are subject to a single law of formation and existence in the market.

Price functions

A market economy differs from a regulated one in that prices have the opportunity to freely realize all their functions. The leading tasks that are solved with the help of prices can be called stimulation, information, orientation, redistribution, establishing a balance between supply and demand.

The seller, by announcing the price, informs the buyer that he is ready to sell it for a certain amount of money, thereby orienting the potential consumer and other traders in the market situation and informing them of his intentions. The most important function of establishing a fixed cost of goods is to regulate the balance between supply and demand.

It is with the help of prices that producers increase or decrease the quantity of output. A decrease in demand usually leads to an increase in prices and vice versa. At the same time, price-forming factors are a barrier to discounting, since only in exceptional cases can manufacturers lower prices below the cost level.

Pricing Process

Price setting is a complex process that takes place under the influence of various phenomena and events. It is usually carried out in a certain order. First, pricing objectives are determined, they are closely related to strategic goals manufacturer. So, if a company sees itself as an industry leader and wants to occupy a certain market segment, it seeks to set competitive prices for its product.

The following are the main pricing factors external environment, features and quantitative indicators of demand, market capacity are studied. It is impossible to form an adequate price for a service or product without assessing the cost of similar units from competitors, so the analysis of competitors' products and their cost is the next stage of pricing. After all the "incoming" data are collected, it is necessary to select pricing methods.

Typically, a company forms its own pricing policy, which it adheres to for a long period. Final stage this process- final price fixing. However, this is not the final stage, each company periodically analyzes the established prices and their compliance with the tasks at hand, and based on the results of the study, they can reduce or increase the cost of their goods.

Pricing principles

The establishment of the cost of a product or service is not only carried out according to a certain algorithm, but is also carried out on the basis of basic principles. These include:

• The principle of scientific research is not taken "from the ceiling", their establishment is preceded by a thorough analysis of the external and internal environment companies. Also, the cost is determined in accordance with the objective economic laws in addition, it must be based on various pricing factors.
• The principle of target orientation. Price is always a tool for solving economic and social problems, therefore, its formation should take into account the tasks set.
• The pricing process does not end with the establishment of the cost of goods in a specific time period. The manufacturer monitors market trends and changes the price in accordance with them.
• The principle of unity and control. State bodies constantly monitor the pricing process, especially for socially significant goods and services. Even in a free, market economy, the state is assigned the function of regulating the cost of goods, to the greatest extent this applies to monopolistic industries: energy, transport, housing and communal services.

Types of factors affecting the price

Everything that affects the formation of the value of goods can be divided into external and internal environment. The former include various phenomena and events that the manufacturer of the product cannot influence. For example, inflation, seasonality, politics, and the like. The second includes everything that depends on the actions of the company: costs, management, technology. Also, pricing factors include factors that are usually classified by subject: manufacturer, consumers, state, competitors, distribution channels. Costs are separated into a separate group. They directly affect the size of the cost of production.

There is also a classification within which three groups of factors are distinguished:

• not opportunistic or basic, i.e. associated with a stable state of the economy;
• opportunistic, which reflect the variability of the environment, these include fashion factors, politics, unstable market trends, consumer tastes and preferences;
• regulatory, related to the activities of the state as an economic and social regulator.

Basic system of pricing factors

The main phenomena that affect the cost of goods are indicators that are observed in all markets. These include:

• Consumers. The price is directly dependent on demand, which, in turn, is determined by consumer behavior. This group of factors includes indicators such as price elasticity, buyers' reactions to them, market saturation. The behavior of consumers is influenced by the marketing activity of the manufacturer, which also entails a change in the cost of goods. The demand, and accordingly the price, is influenced by the tastes and preferences of buyers, their income, even the number of potential consumers matters.
• Costs. When setting the price of a product, the manufacturer determines its minimum size, which is due to the costs that were incurred in the production of the product. Costs are fixed and variable. The first are taxes wages, production service. The second group consists of the purchase of raw materials and technologies, cost management, and marketing.
• Government activities. In different markets, the state can influence prices in many ways. Some of them are characterized by fixed, strictly regulated prices, while for others the state only controls the observance of the principles of social justice.
• Merchandising channels. When analyzing price-forming factors, it should be noted the special significance of the activities of the participants in the distribution channels. At each stage of the promotion of products from the manufacturer to the buyer, the price may change. The manufacturer usually seeks to retain control over prices, for which he has various tools. However, the retail and wholesale prices are always different, which allows the product to move in space and find its final buyer.
• Competitors. Any company seeks not only to fully cover its costs, but also to maximize profits, but at the same time it has to focus on competitors. Since too high prices will scare away buyers.

Internal factors

Those factors that the manufacturing company can influence are usually called internal. This group includes everything related to cost management. The manufacturer has various opportunities to reduce costs by looking for new partners, optimizing the production process and management.

Also, internal price-forming demand factors are associated with marketing activities. The manufacturer can help increase demand by advertising campaigns, creating excitement, fashion. Internal factors also include product line management. A manufacturer can produce similar products or products from the same raw material, which helps to increase profitability and reduce prices for some products.

External factors

Phenomena that do not depend on the activities of the manufacturer of goods are usually called external. They include everything related to the national and global economy. Thus, the external pricing factors of real estate are the state of the national economy. Only when it is stable, there is a steady demand for housing, which allows prices to rise.

Politics is also an external factor. If a country is at war or protracted conflict with other states, then this will necessarily affect all markets, the purchasing power of the consumer and, ultimately, prices. External are the actions of the state in the sphere of price control.

Pricing Strategies

Given various pricing factors, each company chooses its own path to the market, and this is realized in the choice of strategy. Traditionally, there are two groups of strategies: for new and for existing products. In each case, the manufacturer relies on the positioning of its product and on the market segment.

Economists also distinguish two types of strategies for a product already existing on the market: a sliding, falling price and a preferential price. Each way of setting prices is associated with a market and marketing strategy.

Price is the amount of money paid for a particular good or service. In other words, price is a component of an exchange or transaction between two interested parties: a buyer and a seller. The price is important elements of any product, and the process and principles of setting the price of a product occupy an important place in the company's marketing strategy.

The material of the article is an introduction to the theory of pricing and is intended to form the correct basic knowledge about the process of setting prices for a product. Here we will talk about the importance of price for a company's product, consider in detail the factors that affect the price of a product, and describe the basic principles for pricing a product.

What is "price"?

There are at least 4 points of view on the concept of "price": from the point of view of an economist, the price is set through the interaction of two market forces - supply and demand, from the point of view of an accountant, the price should cover the costs of producing a product and ensure profit, from the point of view of a consumer, the price is an indicator product value, and from the point of view of the seller, the price provides an opportunity to gain a competitive advantage.

The pricing process is not limited to commercial organizations, but can also be used by non-profit companies - charitable foundations, trade and industrial associations, etc. For example, charitable foundations may, as part of the pricing process, set different “target donation levels” and offer “donors” different conditions and statuses depending on the amount of donations (indication of the company logo in the organization’s brochure, etc.)

Factors affecting the price

Pricing is a time-consuming process, as many factors must be taken into account in order to establish the right competitive price: product cost, marketing mix and product positioning, life cycle product, the competitive environment and the nature of consumer demand, as well as the economic and political norms of the country.

Detailed description of the factors affecting the final price of the product:

Pricing Factors	Description
Pricing Factors	Description
Product cost	The sum of the variables and fixed costs, which the company bears when releasing 1 unit of production. The cost of producing a good or service is one of the key factors in setting prices. If the selling price is lower than the cost of goods, then the company will incur losses.
	The price must match the target market, the target consumer and the distribution channels in which the product is planned to be sold.
Positioning	The price helps to create the right image of a product or service: luxury, mass market, economy segment.
Product life cycle	Different stages of the life cycle require a different approach to the pricing strategy, as they have different goals.
The goals of the company when releasing a product	Target profitability of the product and market goals of the company.
Competitors' prices	The price of a product should take into account the price competitive environment and price clusters that have formed in the market.
The level of competition in the market	Monopoly allows you to set inflated prices, while free competition promotes the equalization of prices for the same type of goods.
Forecast of competitors' actions	It is necessary to predict the consequences of pricing decisions. For example, setting a price too low can lead to a price war that is of no interest to either side.
Price perception by buyers	A competitive price is based on consumer perception of the value of a product: too cheap product may seem to the consumer of poor quality, but too high price product can scare away potential consumers
Elasticity of demand	The demand curve shows the relationship between the quantity of a good and its price, in other words, it shows the quantity of a good that one wants to buy. the target audience at different retail prices.
The state of the economy	During the period economic crises the demand for goods in the economy segment increases, and the consumer's sensitivity to price increases.
Legal regulations in the market	From a legal point of view, a country may have certain laws prohibiting price discrimination or setting a maximum price threshold for certain types of goods.

Pricing Process

The sequence of the following 10 actions, which can be called the main stages of the product pricing strategy, helps to develop a marketing pricing strategy correctly:

• Determining pricing goals
• Calculation of the cost of goods and the forecast of costs with an increase in the scale of production
• Determination of the break-even point
• Assessment of demand from the target audience
• Estimating the elasticity of demand, determining the relationship between demand, costs and profits
• Assessing the perception of the price of a product in the target market
• Competitor price analysis
• Determination of price positioning relative to competitors
• Approval of pricing strategy and tactical measures
• Price setting

It is important to set the target correctly.

The goals of the pricing process can be divided into 2 groups: financial and marketing. Financial goals describe profit and sales targets, while marketing goals describe the company's wishes regarding the position of the product in the industry and the perception of the product's image by the target audience.

Financial goals can be formulated in terms of maximizing profits, revenue, and sales; in achieving a certain level of profit and sales; in achieving a certain level of profitability of the product.

Marketing objectives are an extension of the product positioning and promotion strategy and are defined in terms of maintaining or increasing market share; interactions with competitors (price war, preventive actions); in building a certain price positioning; in reaching the level of trial purchases and attracting a certain% of the target audience to the company's product.

Classification of pricing decisions

In the pricing process, the marketing specialist needs to make and approve three important decisions: a single pricing method, pricing strategy, and pricing policy in terms of tactical pricing measures.

The pricing method determines how the cost of a product is calculated, taking into account available costs and the scale of production. The pricing strategy defines the principles of long-term price management of the product. The pricing strategy should not contradict the marketing strategy of the product, determine price positioning relative to competitors, determine pricing strategies in sales channels, the need for price discrimination, and have a price development vector throughout the life cycle. The definition of tactical pricing measures affects the issues of pricing policy in the field of discounts, promotions for temporary price reductions in sales channels, package pricing conditions.

The price, as already noted, is the amount of money that is paid for the goods. The value of money is determined by its purchasing power, i.e. what they can buy. In a market economy, the change in the purchasing power of money within certain limits occurs constantly. A significant increase in prices occurs as a result of a sharp increase in inflation and other crisis phenomena that cause a significant deterioration in macroeconomic indicators and their derivatives, which include the gross and national product, the country's external and internal debt, the deficit and real size of the budget, the size of emissions, lending rates, quotes in the stock and currency markets. Other factors also influence the rise in prices: the level of sophistication tax system and development legislative framework, the existence of shadow business and corruption, crime, unemployment, the level and life expectancy, ongoing political events, the state of the world economy, etc.

Price setting is a difficult and complex process that requires taking into account a large number of factors. One of the factors influencing price formation is the economic value of the product. In the field of pricing, the economic value of a good for the buyer or the value that appears in the exchange is understood as the assessment of the desired good, which in monetary terms exceeds its price. From this point of view, value can actually be measured on the basis of the ratio of utility and price of goods that are alternatives available to buyers. Thus, the total economic value of a product is understood as the price of the best available to the consumer. alternative goods(cost of indifference) plus the value to him of those properties of the product that distinguish him from this better alternative (value of differences).

The formation of the overall economic value of the product for the consumer can be described using the following formula:

total value = cost of indifference + positive difference value - negative difference value.

In other words, when determining the value of a product for himself, the buyer takes as a starting point the price of the best available varieties of goods from other firms that satisfy the same need. The procedure for calculating the economic value of a product can be quite strictly formalized and become the basis for reliable quantitative assessments. In practice, this procedure consists of four main stages: determining the price of indifference, establishing differences, assessing the significance of differences from the consumer's point of view, summing the price of indifference with the estimates of differences.

Stage 1- determination of the price (or costs) of the good (goods or technology) that the buyer is inclined to consider as the best of the alternatives actually available to him. At this stage, you should functionally measure and determine the price that the buyer will pay if he purchases a functionally commensurate amount of goods offered by competitors.

Stage 2- determination of all parameters that distinguish the product both for the better and for the worse from the alternative. The most frequently analyzed parameters are:

• functioning;
• reliability;
• the number (more or less) of useful properties;
• the content of useful (harmful) substances;
• maintenance costs;
• commissioning costs;
• Maintenance.

Stage 3- assessment of the significance of differences in the parameters of the product and its alternatives from the standpoint of the buyer. At this stage, the differences in the product must be evaluated in monetary terms. Such scores can be obtained in different ways:

• as a result of a survey of experts and sellers;
• by conducting trial sales and customer surveys using special techniques;
• based on calculations economic efficiency(when we are talking about the parameters of the product that can directly reduce the cost of the buyer).

At the same time, it must be remembered that the scale of quantitative changes in the level of one or another consumer parameter of a product in comparison with the parameters of alternative products does not necessarily coincide with the scale of the change in the benefits from its use by the buyer and, accordingly, with the change in the amount of money that he agrees to pay for receiving this product.

Stage 4- summation of the price of indifference and estimates of the positive and negative value of the differences between the product and its alternatives. In this case, it is usually recommended to set the price below the upper limit of economic value in order to increase consumer interest in the product.

In addition, pricing is influenced by numerous factors of the external and internal environment, therefore, all other technical and economic parameters are analyzed and predicted mainly to determine the price of goods and services produced. In real conditions, prices are formed under the influence of two groups of factors - internal and external. In other words, in the process of determining the price at the enterprise, it is necessary to take into account information as about the market ( external factors) and costs (internal factors).