On the Incentive Property of the Iterative Multiple Price List

RATIONALE FOR ESTABLISHING A FLOATING PRICE DISCOUNT ON ENTERPRISE PRODUCTS

International scientific journal Internauka Series Economical Sciences ◽

10.25313/2520-2294-2020-11-6487 ◽

2017 ◽

Author(s):

Andriy Kolomiyets ◽

Keyword(s):

Cost Savings ◽

Sales Managers ◽

Price Discount ◽

Advertising Appeals ◽

Price List ◽

Price Discounts ◽

Additional Costs ◽

Product Sales ◽

And Storage ◽

Form Effect

The article presents an overview of methods for determining the effectiveness of advertising appeals of the enterprise in conditions of competition. It is shown that the sale of goods in large batches leads to a reduction in sales costs associated with the organization of sales, transportation and storage. Therefore, when providing a quantitative discount, their value should not exceed the amount of cost savings of the seller, which is caused by the sale of goods in large batches. Similar to the effects of real responses to advertising appeals, the effects of the price of the enterprise's products are distinguished: the current effect, the form effect, the competition effect and the transition effect. The process of modeling the effects of the promotion price and the control price is considered, and of interest is the temporary price for the buyer with a discount, which is actually provided by sales managers at the enterprise. Then there will be an effect of discounts on temporary base prices. The price discount is considered as a part of the price of the goods which can be introduced by the enterprises-manufacturers for the purpose of stimulation and interest of the enterprises-sellers to sell production. In the study of product sales, a problem was found related to sales of products in the area of the price discount offered by the price list, which represents the constant prices of the company for a certain period of time. The promotion price is defined as the discount on the products of the enterprise price according to the price list. It is determined that buyers, focusing on the system of discounts, avoid buying hardware in the approach to the transition of prices and increase the volume of purchases after the transition discount. A comparison of retail and base prices, and base and wholesale prices for hardware. It is proved that the company when approaching the price discount loses the profit that could be obtained, and this problem causes losses to both parties and the seller and buyer. It is shown that the policy of promoting price discounts of Metal-Holding encourages consumers to buy more hardware, which is not beneficial to the buyer, because it causes additional costs for storage of the balance. It is concluded that the problem at some weight interval when approaching the existing price discount on the left and right requires the establishment of a floating price discount on the company's products.

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