Thursday, 6 April 2017

Pricing Methods for manufacturing / Principal

Pricing Methods

The Pricing Methods are the ways in which the price of goods and services can be calculated by considering all the factors such as the product/service, competition, target audience, product's life cycle, firm's vision of expansion, etc. influencing the pricing strategy as a whole. The determination of the price of the staple production - The use of the cost of goods in process products processed through several stages of processing. The assumption used in the example are:
  1. There is no inventory of products in process at beginning of the period.
  2. It is no product that is lost damaged or faulty processing in the process.
  3. The company only produces a range of products.

The company produces a range of products through two departments of production. Department A and b. Departments according to a report from the production part of the production, resultant products to every department that in the month of activity, showed a different production.

Pricing method of principal production each company has specific calculations, because the entire cost of that has been sacrificed in the overall calculation of the hardness, so that the production cost of goods can be set after the some elements of expenditure for example, the cost of raw materials, cost of fuel, salaries, employee salaries and administrative costs and marketing costs factored takes part to know how how should the price of the staple should be set by the company. 

Pricing strategies

The company's production process requires sufficient time and have been taken into account by the company Manager how long and how much it costs the term has been sacrificed at the end of the overall fees plus any other sacrifice sacrificed .

Get lost on companies in the business anyway that is producing and selling the results of its products can compete with the products of other companies with the same product and can consider the various elements involved in spending. Pricing method the firm as one of the principal indicators to facilitate the flow of sales results of the company's products.

Calculation of cost of goods production companies can minimize spending so that the production cost of goods cheaper compared to previously, which employ the funds sometimes wasteful (uncontrolled) on pricing anyway naturally rather high.

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