Price structure, in terms of the manufacturer - Industrial (B2B) marketing

Price structure, from the manufacturer's point of view

Often for the manufacturer, the final price of the product consists of two main elements: the cost of goods and profitability.

The cost of production is one of the most important quality indicators of the enterprise. It includes the total costs of manufacturing this product, including direct and indirect costs, the cost of preparing the production and the introduction of this type of product.

The cost of production can be determined using the formula as follows:


where - material costs for the production and sale of products; - depreciation for the full restoration of major production assets; - labor costs; - deductions for state social insurance; - deductions for compulsory medical insurance; - deductions for mandatory property insurance; - interest payment for short-term loans Units to banks: - other costs for the production and sale of products, including costs for all types of repair of fixed assets.

The profitability in determining the price of a product is usually a percentage of the cost of production necessary to obtain a profit from sales. This profit of the company from the sale of products will be distributed among the funds of the enterprise and in the future will be used to expand production, invest in new projects of the company (for example, development and introduction of new products) or cover losses from market activities.

In practice, the level of profitability depends on many factors, for example, the level of market prices for this product; the level of the cost of production or the life cycle of the goods.

Accordingly, the price of sales of products under this approach will be the sum of the cost of production and profitability/planned savings (Figure 8.3).

Price structure from the manufacturer's point of view

Fig. 8.3. Price structure from the producer's point of view

The main task of determining the index of the planned cost of production is to calculate the required costs for the production of goods and establish a final price for consumers.

Calculation by manufacturers of the planned cost price index can be carried out quarterly, for the subsequent planned period, with a relatively stable nomenclature and production volume; at the beginning of the production of new products or when prices change for energy carriers and other components of production costs, the change of which occurs for reasons beyond the control of the enterprise.

It's important to remember!

Information about the actual production cost per month is transferred for analysis to the economy and prices department for further comparison with the planned cost price and is actively used by enterprise managers when calculating the planned cost price for subsequent periods.

When establishing the final price for the consumer companies, the supplier companies use various surcharges, discounts, credits, as well as discriminatory prices.

Usually discount means a certain price, allocated by the seller of the goods to different buyers with the purpose of expanding the sales market, covering individual costs.

In the business market, manufacturers usually use the following types of discounts :

1) bonus discount is presented to regular customers,

2) special discount is provided to those buyers in whom the company is particularly interested (for example, large wholesale companies);

3) dealer discounts provides its permanent representative or agent to sell products, including foreign markets;

4) export discounts are provided by sellers to foreign buyers in excess of those discounts for domestic buyers; 5) rebate rebates are provided to customers when returning a purchased product to an out-of-date model;

6) Discounts for cash payments;

7) discount for early payment.

8) seasonal discounts - buying merchandise outside the active season period;

9) hidden discounts are used by sellers by providing soft loans, free services and product samples;

10) discounts for the sale of equipment that was in use (for example, 10 to 60% of new equipment);

11) discounts for complex purchases;

12) functional discounts are provided to resellers for a number of actions (for example, advertising, better layout,

Considering the discounts and their impact on setting the final price for consumers, one can consider the experience of the domestic manufacturer OJSC "KamAZ" in the business market. All consumers wishing to purchase KamAZ Ml842 or other KAMAZ equipment in the framework of the recycling program can apply to the dealer with a copy of the PTS with a mark of the State Traffic Safety Inspectorate for removal from the register in connection with disposal, as well as the original or a notarized copy of the act of handing over the recycled vehicle heat exchanger. Also, consumers can use the "gra-in" scheme; in relation to their old technique. In this case, subject to recycling the car along with the original PTS and the certificate of registration of the vehicle is transmitted directly to the dealer in exchange for a discount in the amount of 300 thousand. Rub. when buying a new KamAZ.

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