What Are Pricing Objectives?

Pricing Objectives are the goals and standards that companies consciously require to set prices for the products they produce or operate. It is the main factor that guides companies to make price decisions. Pricing goals depend on the overall goals of the business. Enterprises in different industries, different enterprises in the same industry, and the same enterprise may have different pricing targets under different periods and different market conditions.

Pricing target

Pricing Objectives are the goals and standards that companies consciously require to set prices for the products they produce or operate. It guides the business

Obtaining profits is the ultimate goal of enterprises engaged in production and operation activities, which can be achieved through product pricing. The goal of obtaining profit is generally divided into the following three types.

Pricing target to obtain investment income

Investment income pricing objective refers to a pricing objective that enables an enterprise to realize its investment recovery within a certain period of time and obtain the expected return on investment. Companies adopting this pricing target are generally specified based on the amount of investment

Overview

Also called market share target. To keep and improve the

Enterprises are very sensitive to the behavior of competitors, especially the price changes. Under the situation of increasingly fierce market competition, companies must collect information extensively, carefully study the prices of competitors' products, and deal with competitors through their own pricing goals before actual pricing. According to different conditions of the enterprise, the following decision objectives are generally available for selection.

Price is an important factor affecting the future of manufacturers, distributors, customers and product markets. Setting the right price is the key to protecting the interests of manufacturers, motivating distributors, attracting customers to buy, defeating competitors, and developing and consolidating the market. Enterprise pricing goals directly affect product prices. This article will start by introducing the classification of enterprise pricing goals, explaining the impact of financial goals and market goals of corporate pricing on prices, and making suggestions on how to choose pricing goals.

I. Classification of Enterprise Pricing Goals Enterprise pricing goals refer to the expected goals that enterprises need to achieve by setting a certain level of price. The product price composition consists of production costs, circulation costs, profits and taxes. The goals of corporate pricing are divided into financial goals and market goals. Financial targets include cost targets and profit targets. The cost target, that is, the price of the product must be the target of compensating the production cost; the profit target, that is, the question of the proportion of profit in the product price. Market goals include sales goals, market share goals, and price stabilization goals. Sales target, that is, to maximize sales under the premise of guaranteeing a certain profit; market share target, that is, to maximize market share under the premise of ensuring a certain profit; stable price target, that is, to set an appropriate price so that The price of products between similar enterprises has remained stable, reducing losses between enterprises due to price competition.

Second, the impact of corporate pricing financial targets on prices (a) cost targets. Cost is the sum of a company's production, marketing, and management expenses.

Pricing target refers to the expected purpose that an enterprise wants to achieve by determining or adjusting the price of a specific commodity. There are roughly the following pricing goals:

[1] Pursue maximum profit;

[2] maintain or improve

As shown in the figure:

1.Select a pricing target

2.Determine requirements

3.Estimated cost

4.Analyze competitors' costs, prices, and offerings

5. Choose a pricing method

6.Select final price